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.99 vs .95 - Which strategy will work for me?

Created on

Both of these strategies are considered as charm pricing. There are many research pointing out the positive psychological effect of such pricing. Customer has perception of lower price in this case, and they tend to make faster decision.

No surprise that all the big brands such as Apple, Microsoft, UniQlo, and many more have resorted to such pricing strategy.

Study on the large (1.5 million) store data also supports this view. Going deeper into the effect of different charm pricing strategy for different vertical, it has been found that -

For the category of store selling “Style and fashion” goods .99 is more prevalent than .95 (27% vs 10%). And almost in all the other categories .99 strategy is most prevalent.

For more detailed report on this please refer here .