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Path: utzoo!henry
From: henry@utzoo.UUCP (Henry Spencer)
Newsgroups: ont.general
Subject: Re: Sunday shopping hours (again).
Message-ID: <7746@utzoo.UUCP>
Date: Fri, 6-Mar-87 13:09:55 EST
Article-I.D.: utzoo.7746
Posted: Fri Mar  6 13:09:55 1987
Date-Received: Fri, 6-Mar-87 13:09:55 EST
References: <5626@watmath.UUCP>
Organization: U of Toronto Zoology
Lines: 12

> ... When I buy something in Ontario its price is say $4.99...
> When I buy the same thing elsewhere its price is $5.00.

The problem is that if the $4.99 prices get a foothold, they drive out the
$5.00 prices, because pricing something at $4.99 results in higher sales
than pricing it at $5.00.  The difference is much larger than one would
expect from a one-cent price drop, because the key issue is that customers
subconsciously perceive $4.99 as significantly cheaper than $5.00.  There's
a moral here somewhere...
-- 
"We must choose: the stars or	Henry Spencer @ U of Toronto Zoology
the dust.  Which shall it be?"	{allegra,ihnp4,decvax,pyramid}!utzoo!henry