Have you ever wondered why so many businesses use that dreaded 99-cent in their pricing strategy? Consumers perceive 99-cent as cheap; $14.99 looks much cheaper than $15 even if it’s off by 1 cent.

The psychological effect of adding 99-cent to the dollar value works wonder for prices like $99.99, $89.99, $79.99, $69.99 and etc. The consumers analyze and conclude that the product hasn’t reached the next bracket [100, 90, 80, 70,] and think it is a steal.

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