Increased consumer sales response though use of 99-ending prices

Through the cooperation of a direct-mail women's clothing retailer, we were able to conduct a well-controlled experiment testing the sales effect of using retail prices that end in the digits 99 rather than 00 (e.g., $29.99 rather than $30.00). The results indicated that the use of 99 endings led to increased consumer purchasing. This finding demonstrates the importance of the manager's decision concerning a price 's rightmost digits.