Two recent studies have shown that pricing terminology can influence buying. The University of Indiana found that a psychological pricing effect was seemingly apparent in some stock market trades, and that ”buys’ outnumbered ’sells’ when prices ended in 99, with the second most popular number for ‘buys over ’sells’ being 49. In another study at Ohio State University, when numbers appeared larger people thought they were worth more, 300 cents was apparently worth more than 3 dollars, because three hundred seems bigger. Do these people understand maths?
(source: Dr Con Stavros, RMIT)