Ohio Condition research displays 99-cent pricing trick could backfire on vendors

COLUMBUS (WCMH) — A examine conducted by researchers at Ohio State University takes on the retail pricing trick of location a value just underneath a spherical number — for occasion, $39.99 as an alternative of $40.

Though the 99-cent price level might lead individuals into wondering the product or service is significantly less costly than it really is, researchers uncovered that “just-below” pricing would make customers considerably less probable to enhance to a a lot more costly version of the merchandise or support.

“Going from $19.99 to $25 might seem like it will expense much more than going from $20 to $26, even although it is really considerably less,” said Junha Kim, doctoral scholar and guide creator of the research. “Crossing that spherical number threshold would make a major change for people.”

The effects have been acquired from 7 distinctive experiments on a assortment of products and solutions, which includes espresso, facemasks, streaming expert services, automobiles, and flats, according to OSU.

The study, “The Threshold-Crossing Influence: Just-Underneath Pricing Discourages Consumers to Up grade,” was released Thursday in the Journal of Client Investigate.