Ask HN: How much difference does it make today by pricing $*.99

[BuddhaSource]

This is a very broad question, I have read that it takes same efforts to convert $5 & $10. In that case how much does .99 help in today's online services.

It can have different results for business products and consumer products. I find .99 little messy and feel somebody who is ready to buy is not looking for 1cent discount.

However I can be wrong in many ways, does anybody have conversion metrics taken recently? - What are the pros and cons? - How is it different for consumer and business pricing? - Who are the target audiences who will be affected by this change?

[schrodingersCat]

I have a feeling this has been discussed before. At any rate, here are some links:

http://blog.kissmetrics.com/5-psychological-studies/

https://en.wikipedia.org/wiki/Psychological_pricing

[phenol]

IIRC, the whole "99 cent pricing" paradigm originated not as a method to subtly reduce the apparent price of products, but as a way to force cashiers to give change for all purchases, and thus open the register so that all transactions could be recorded.

Of course, this practice is completely obsolete in online shopping, while the psychological pricing effect remains.