Some stores also have a practice of reducing prices to a different figure (ending in .98 or .97) as indication to staff that the goods are in a sale. The staff may have authority, on request from the customer, to reduce the price further to clinch a sale. If the original prices were in whole $ or £, this would be far too obvious.

for instance, $19.99 appears that you’re only paying around $10, as opposed to $20, it just seems more expensive because of the 2, when in actuality, it’s just a penny difference…it’s a marketing strategy, which works, believe it or not! unless you’re one of those who really looks at the price logically…

$0.99 instead of $1.00. Which 1 would u buy?? Obviously $0.99,which looks very cheap,dosen’t it?

It’s a marketing trick:D

if someone browses a shop and sees 10.99 or 11.00

well which one would you go for? Its the cheapest that hits the consumer and it catches the eye