DIT Lecturer Damien O' Reilly features on RTE Brainstorm
30 May 2018
Analysis: when it comes to persuading us to part with our hard earned cash, what are the tricks which retailers like to use?
Damian O' Reilly from DIT College of Business, School of Retail and Management shares his opinion 'The Psychology of Pricing' on RTE's Brainstorm.
If you’re shopping today, you’ll see prices that end in "9" almost everywhere. It has been suggested that the "99 effect" was introduced to curtail employee theft in the early part of the 20th century. It forced cashier and sales staff to open the tills for change thus reducing the chances of them pocketing the money.
Recent studies have shown that it is as effective as ever in getting customers to part with their hard earned cash. Why does it work? Surely, we all intuitively recognise that 99.99 is only a cent from €100? We read from left to right and the first number we see is 99 and that then becomes an "anchor" number in our mind and the change makes more of a difference that the value of the money.
You can read the full article here.