From my experience working in retail I’ve seen people say out loud something like “oh, it’s only 4 dollars!” When the sticker says $4.99. This shit apparently works on a lot of people for some reason.
Honestly I just want tax included on the price tag.
That is honestly insane.
In NZ the sticker price is what you pay, if the price on the sticker doesn’t include tax, it is false advertising and you pay what is on the sticker.
It is entirely up to the retailer to ensure that the price is correct. The only exception to this, is if the price is obviously wrong e.g. $5.00 rather than $500.
It really is considering how easy it would be to implement.
That’s an American problem too
$20 and $10 shipping: 😡
$30 and free shipping: 😄
I don’t understand people who won’t pay £5 for shipping, but will instead spend another £15 on something they don’t need so they get free shipping.
All you’ve done is lost money.
It does work believe it or not. It is something that plays to your subconscious. You will favor the slightly cheaper option even if you aren’t aware of it.
I learned all about this in “thinking fast and slow” by Daniel Kahneman. He talks about system 1 and system 2, where system 1 is your kind of knee-jerk reaction to a thing (thinking fast), and system 2 is the contemplative and careful consideration of a thing (thinking slow).
I would argue that some people overly leverage system 1 (thinking fast) because it’s generally easier, and takes less time and mental effort to do. Those that either can’t, or are unwilling to engage system 2 in their day to day activities, will 100% fall for these kinds of misleading prices, since system 1 is cutting so many corners so that it can be fast and efficient (mostly on how much energy is used), that it skips a lot of the cognitive steps and goes right to the (often incorrect) conclusion. That $19.99 is $19 (or $10 in some cases).
In the book, they discuss that system 1 often gives the wrong information that is later rejected by system 2 when further consideration is given to a particular input/stimulus.
If someone isn’t engaging system 2 as a check to ensure system 1 isn’t lying to them, then shit like $19.99 seems cheaper than $20. It doesn’t hold up to any scrutiny, but they’re not targeting thoughtful people with these practices. For thoughtful people, there’s functionally no difference between $19.99 and $20.
Yes, the difference is one cent, but given that one cent is so worthless in today’s society, to the point that Canada stopped making one cent coins (and other countries have done so as well), there’s functionally no difference between the prices.
One cent is only worth anything if it is combined with many other cents. The sum of those pennies becomes valuable when you conglomerate enough of them.
That’s a great way to put it
But it IS how we see prices. If there weren’t science behind it, they wouldn’t be doing it.
But it IS how we see prices.
I don’t. Never did. I’m sure I’m not the only one.
You do though
At some level you will favor the 19.99. You might justify it with some other rational but there will be the bias.
No, I really don’t.
No, I dont though.
It really depends on the study you choose to believe into. (No, everyone does it, isn’t a pro argument. People always had strange beliefs which later changed. I think it’s called major consensus narrative or maybe consensus reality
I like this hill, I’ll stay here. Thank you.)
