A new ’round numbers’ pricing strategy which Woolworths says will help its customers is actually little more than a psychological ploy, according to a retail expert.
The grocery giant announced on Thursday it is moving the prices of more than 20,000 products to round dollars and no cents.
Woolworths director of buying and merchandise Steve Donohue told Fairfax Media the move would increase “simplicity” by making it easier for customers to compare prices and perform mental arithmetic.
However, Dr Gary Mortimer, a retail expert the University of Queensland, said the real intention is to convince shoppers they are paying less.“It certainly makes it easier for shoppers to identify prices, but more importantly it creates references prices,” Dr Mortimer told The New Daily.
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