Blake Snow

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Tagged psychology

Psychology study: 99 cent pricing boosts sales by 8%

ShamwowWTFDoes .99 cent pricing really work? Wouldn’t it be easier to round everything to the nearest dollar?

The answer to both those questions is a resounding “yes.” Although it would be easier to round up, stores use so-called psychological pricing because it demonstrably boosts sales by 8%, according to one study of 60,000 mail-order catalogs.

In short, the 30,000 customers that received rounded up pricing spent 8% less than the 30,000 catalog recipients of 99 cent pricing. (Note: The two catalogs were identical except for pricing.)

Granted, this study was performed 20 years ago. But with those kind of gains, the trend is sure to stick around for a long time.

Blame “important” doctors for your cell phone abuse

cell phone rubber bandI wrote on article on cell phone abuse, to be published on GigaOM, and was unable to use the following, which I thought was rather insightful:

“When cell phones were first introduced, they were expensive and obtrusive,” says Dr. Lisa Merlo, professor of psychology at the University of Florida. “As a result, the people who had them and used them did so for ‘important’ reasons. For example, physicians might have a cell phone while on-call. So, people excused the rudeness associated with talking on a cell phone because there was a legitimate reason for doing so. However, cell phones have become ubiquitous, and the rules have not changed to accommodate this.”

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