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Even in the age of online shopping, prices like ₱999 or $9.99 remain effective. Many shoppers perceive these prices as significantly lower than the next whole number, even though the difference is small.
This psychological effect has been studied for decades and is still widely used by retailers. The strategy influences both online and in-store purchasing decisions. A single cent can change how a price feels. Sometimes, the smallest number has the biggest impact.
© Harvard Business Review