95 Cents extra... JQ fares wth 95c

[david870mdg]

Don't let the title mislead you, i'm just curious as to where JQ has found justification to add 95cents to their fares eg MELSYD not $79 or $80 but $79.95 .
Strange.
It would be nice if they had a 95c airfare sale instead.
Interesting to know what others think, and why they didnt just round it up to a full amount like just about every other airline does in their home currencies (correct if wrong).

:?:

 

[JohnK]

Does anything JQ do sound logical?

I guess it comes from extensive market research over the years where most things sold in shops end in 99 cents. I guess people believe that the 1c, or 5c, makes a huge difference. Oh look that is only $9.99....

 

[oz_mark]

Don't let the title mislead you, i'm just curious as to where JQ has found justification to add 95cents to their fares eg MELSYD not $79 or $80 but $79.95 .
Strange.
It would be nice if they had a 95c airfare sale instead.
Interesting to know what others think, and why they didnt just round it up to a full amount like just about every other airline does in their home currencies (correct if wrong).

:?:

Qantas may display something like $80, but when you go through to the payment page, it can be something like $79.38. I guess JQ are just trying that sales game that shops play.

 

[Saab34]

Tiger did this when they first started in 2007 but since moved on from it but Pacific Blue on NZ Domestic have been doing it for a while..

I guess $39 or $39.95, the customer will probably still buy it...just more revenue for JQ.

 

[Alanslegal]

I made some bookings on JQ today (on those $25 sales) and saw fares being listed as $xx.95, and that was the first time I have seen it (or have I just been missing it, which I doubt).

 

[harvyk]

Does anything JQ do sound logical?

I guess it comes from extensive market research over the years where most things sold in shops end in 99 cents. I guess people believe that the 1c, or 5c, makes a huge difference. Oh look that is only $9.99....

You are correct... People look for the number at the left first, and then count the number of numbers in the price...

So $79.95 has the illusion of only being $70 on first glance, rather than 5c off $80 which is what it really is as the first number is a 7, not an 8, and there are 4 numbers in there, but a decimal point half way through.

You may also notice that 99c is no longer used once the number of characters (numbers) in the price starts climbing to high, as people don't always see the decimal point, thus you'll probably won't see $1,999.99 as that number looks too big. People would feel that $2000 is cheaper as it's less numbers.

This type of pricing tactic tends to work best on JQ's target market (aka the budget conscious)

 

[oz_mark]

You may also notice that 99c is no longer used once the number of characters (numbers) in the price starts climbing to high,

Actually, since the withdrawal of 1 and 2c, 99c is hardly used at all, being relaced by 95c.

 

[docjames]

You are correct... People look for the number at the left first, and then count the number of numbers in the price...

So $79.95 has the illusion of only being $70 on first glance, rather than 5c off $80 which is what it really is as the first number is a 7, not an 8, and there are 4 numbers in there, but a decimal point half way through.

You may also notice that 99c is no longer used once the number of characters (numbers) in the price starts climbing to high, as people don't always see the decimal point, thus you'll probably won't see $1,999.99 as that number looks too big. People would feel that $2000 is cheaper as it's less numbers.

This type of pricing tactic tends to work best on JQ's target market (aka the budget conscious)

One ponders that it is so when the competition has a fare set at $80 they can advertise $79.95 and claim they are "cheaper". Which may be factually correct, but kind-of misleading.....