The latest iPhone X isn’t only making headlines because of its sleek redesign, but it’s also making waves with its hefty $999 price tag.
To date, this is the most expensive iPhone ever launched. Apple’s decision to put a $999 price tag instead of a round $1,000 is already intriguing and attracting loads of consumers.
This is because there is something about letting a price tag end in a 9 or 99 that tricks consumers psychologically into thinking that they’re getting a good deal.
According to a marketing professor at Rutgers School of Business, consumers perceive a 9-ending price tag as a round-number price with a little amount that is given back. Consumers are led to believe that the 99 is synonymous to “low-price.”
Other studies also suggest that odd-number pricing gives the illusion that the item is cheaper than it is.
Apple has used this strategy before, and it has deemed to be effective. When the tech giant introduced iTunes in 2003, Steve Jobs priced every song at $0.99. Unexpectedly, people were buying music rather than downloading them illegally! Jobs created a commercially viable digital delivery business for music and saved the dying music industry from oblivion.