What is the essence of the 1 cent or 1 dollar off in the price of products?

[Trush Jodie]

The many products that we see advertisd always have either 1 cent off from a whole number. Some have 1 dollar off from a round figure amount. That is when you would see products being sold for $0.99 or $1.99 and the likes. The others sell for like $199 or $499. Why the one cent or one dollar off?

 

[gwolf666]

This strategy is called "psychological pricing" Merchants set prices like $0.99 or $199 instead of $1 or $200 because consumers often perceive them as significantly lower, even if the actual difference is minimal. Our brains tend to focus on the first number they see (for example, "1"in 199 is perceived as cheaper than "2”"in 200). This makes the product seem more affordable and increases the likelihood of a purchase.

 

[Min George]

Businesses always use that strategy to play on the psychology of customers to believe the product is cheaper.

 

[Augusta]

It is part of discount strategy to lure more buyers. Getting as little as even 1 cent off helps buyers to buy from you