This one is for anyone who ever wondered why that jar of peanut butter isn’t $5 instead of $4.99. In a strategy called “charm pricing,” marketing researchers have found that we’re more likely to think we’re getting a deal at $4.99 because we associate the price more closely with $4 instead of $5. On the flip side, there is “prestige pricing,” high-end retailers are better off using rounded prices shoppers are more likely to associate with quality and luxury.
Some claim that although 4.99 seems cheaper, the actual space this figure takes up is larger, whereas $5 may be higher in price but takes up less space and to some look cheaper. And besides, who what to talk about cents when you’re referring to upper-class buyers?
One-Click Ordering
Being able to order everything from clothing to groceries with just one click is all about making shopping convenient, right? Sure, but it comes with a considerable upside for retailers such as Amazon. One-click ordering makes us much less likely to abandon those virtual carts, meaning we spend more than we otherwise might if we had to click a few more times or manually enter payment information.
Eventually, everything will go online, and before we know it, walking in a mall will be unheard of. We will buy more, the brands will invest less and one-click ordering will be a part of our lives like taking a bath ( which we can't see being offered online).
Resizing
Dove came out with a brand new size for their range their men's range of body wash! It costs a few extra dollars, but it might be worth those few extra dollars, right? Wait a minute! Nice try, Dove, those red letters indicating the "XL" size doesn't mean much when we compare the two bottles next to each other.
So there you go folks, another one of our all-time favorite brands had managed to show that they are no better than Skittles, Snickers, or any other b=name we have mentioned here on our list. Next time you go shopping for toiletries, remember to compare old packaging with new ones. Apparently, the only difference is a bright red sticker.
When Using the Kettle Wasn’t Free
When you check into a hotel, you might have a kettle in your room, which you would assume is for free use. But if you read through the binder, you’ll actually find there’s a fine for using the kettle, and only if reach the end of the binder. Basically, this is one example of how hotels scam their customers, they do the same with the mini-fridge.
The mini fridge is never locked, the door is always transparent for us to see what they have on offer and when you're staying with kids at one of these hotels, no matter how many times you say "Do not take anything out of the fridge", you end up finding yourself with a larger than life bill at the end of your stay.
Subscription Services
There's another reason besides convenience that subscription boxes and similar services suddenly seem so prevalent. Basically the hassle of canceling a subscription, even one that we don't often use — keeps companies' pockets full. It's true even though we're also unlikely to consume enough of something to justify the fixed price, and researchers find we would be better off giving in to the occasional splurge than signing up for a flat rate — even if it might seem like a great value.
Nowadays (thankfully) there are companies that work at getting you disconnected. They do the running after, they do the threatening and they do the shaming. Most service providers do not one to come across one of these.