$325,425 is lower than $325,000  You could be excused, dear reader, for thinking that my understanding of numbers is wanting. While you might generally be right, you would be wrong in this instance. As I have previously noted, the consumer’s perception is their reality. It is how the consumer sees it. Research by Thomas, Simon and […]

$325,425 is lower than $325,000  You could be excused, dear reader, for thinking that my understanding of numbers is wanting. While you might generally be right, you would be wrong in this instance. As I have previously noted, the consumer’s perception is their reality. It is how the consumer sees it.Research by Thomas, Simon and Kadiyali, found that for real estate, at least, $325,425 may be viewed as being cheaper than $325,00. They concluded that this because $325,425 was seen as more precise and, therefore, represented a more ‘considered’ price. Further, where the price is viewed as more precise, the consumer sees less room for negotiation.Research suggests that precision, or the perception of it, is most important with larger numbers.Researchers, Coulter and Coulter, found that when presented with various descriptions for an inline- skate, consumers responded more favourably to a ‘low friction’ benefit than the ‘high performance’ benefit. Even though consumers rated…