Why product prices end at ’99’, know the psychology behind it

If you take a close look at the price tags of most products, you will find that most of the costs end with the numbers 9 or 99. Be it buying a dress, a watch, some furniture, or any other product. case, the price tag often has the number 9 or 99 at the end. Have you ever thought about the reason behind it?

Earlier, it was believed that companies use this marketing scheme for some tax issues. But later it was found that this practice of keeping numbers 9 and 99 is to attract more customers at the end. This is a psychological aspect to entice the buyer. This specific type of technique is called the placebo effect in psychology.

Placebo effect starts when suppose a person is going through some rough patch in his life due to which he is feeling upset. In that vulnerable moment when someone else tells the person that their situation is far better than others who are in worse circumstances, the person’s mood is likely to be elevated. They will start thinking that their condition is a little better than others. Although the ongoing problem of the native will not be solved, but will be satisfied with the feelings.

In terms of pricing, the placebo effect works when retailers heavily price a product but make it seem attractive to consumers. This creates a perception in the mind of the buyer that the specific product outperforms the exact same product with a discount. When a retailer prices a product at Rs.99 instead of Rs.100, the customer is made to believe that the product is cheaper, more precisely less than Rs.100.

When an item is priced at Rs 200, the buyer thinks he is buying a product in the Rs 100 line. What’s more, the consumer pays close attention to the first few digits. If they see that a product is priced at Rs.999, they will automatically create a picture in their mind that they are buying it for less than Rs.1,000 by removing the Rs.1 cut.