September 7, 2011

THE ONE GOOD THING ABOUT EUROPE...:

99-cent pricing may not be worth the penny, says Rutgers-Camden researcher (Ed Moorhouse, Rutgers University)

Just-below pricing, or 99-cent endings, is a common marketing tool used to attract customers looking to get bang for their buck. But a Rutgers-Camden professor says that, in some cases, a penny saved doesn't always translate into a penny earned for retailers.

"The difference between a good product and a poor product in the consumers' eyes could come down to that penny," says Robert Schindler, a professor of marketing at the Rutgers School of Business-Camden. "When consumers care more about product quality than price, just-below pricing has been found to actually hurt retail sales."


...is that the prices are in whole numbers and already include the taxes.


Posted by at September 7, 2011 6:57 AM
  

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