Prices like this are often known as charm prices, odd prices or magic prices or psychological pricing.
Price tags (Photo: Screengrab)
Mumbai: Have you ever thought or noticed how many retailer have price tags either proportionately close to the nearest big figure like Rs 495 or just a rupee less like Rs 499. Prices like this are often known as charm prices, odd prices or magic prices or psychological pricing.
The video below gives the psychological reason behind this particular method of pricing. Watch and learn:
( Source : Deccan Chronicle. )
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