SciEconomy 1 | Página 4

Advice of the month!!!

Quality vs. Price

As a consumer of any needs, you compare two goods not only with their price but you have to consider quality also. You cannot set aside quality while buying a certain good. A product might be extremely cheap and below your budget, however, its quality is very poor and its life spam is only for a day. Therefore, you, consumer of goods, have to think well in order to fulfill your needs with satisfaction. –Gabr, Rana.

Take care: Advertisements can fool you…

Some of us wonder a lot about the 99 piaster/pounds secret on price tickets. We ask ourselves: why don’t they just round the number? Why do they keep it like this? We have to be skeptical about it, since producers want to gain the highest profit. When all stores develop same strategies, we have to be skeptical and understand the reason behind it.

Why don’t they just write 2000EGP? Ask yourself and search is the key of learning and success. In fact, there are two reasons why stores and product are priced with this technique: marketing strategies and sales tax. Many psychologists proved that psychological reactions to that kind of technique results in higher rates of sales. Moreover, sales tax differs every dollar (depending on different policies), subsequently, as stores want to gain the most and pay less taxes, the highest number before the next tax level is .99 piaster or 99 EGP. In this example, the tablet and camera together cost 1,199EGP, this can be analyzed either because buyers could be more surprised if they see the number 2000EGP or it is a matter of paying less taxes than if the price is 2000EGP. Finally, we can say that both reasons combined help the store save tax money and have a high profit at the end of the day, as well.

BY RANA GABR

Economizing Consumption

(Jumia.com online shopping in Egypt)

Economizing Consumption

Advice of the month

Quality vs. Price

As a consumer of any needs, you compare two goods not only with their price but you have to consider quality also. You cannot set aside quality while buying a certain good. A product might be extremely cheap and below your budget, however, its quality is very poor and its life spam is only for a day. Therefore, you, consumer of goods, have to think well in order to fulfill your needs with satisfaction.

–Gabr, Rana.

Take Care: Advertisment can fool you...

Some of us wonder a lot about the 99 piaster/pounds secret on price tickets. We ask ourselves: why don’t they just round the number? Why do they keep it like this? We have to be skeptical about it, since producers want to gain the highest profit. When all stores develop same strategies, we have to be skeptical and understand the reason behind it.

Why don’t they just write 2000EGP? Ask yourself and search is the key of learning and success. In fact, there are two reasons why stores and products are priced with this technique: marketing objectives strategies and sales tax. Many psychologists proved that psychological reactions to that kind of technique results in higher rates of sales. Moreover, sales tax differs every dollar (depending on different policies), subsequently, as stores want to gain the most and pay less taxes, the highest number before the next tax level is .99 piaster or 99 EGP. In this example, the tablet and camera together cost 1,199EGP, this can be analyzed either because buyers could be more surprised if they see the number 2000EGP or it is a matter of paying less taxes than if the price is 2000EGP. Finally, we can say that both reasons combined help the store save tax money and have a high profit at the end of the day, as well.

BY RANA GABR

(Jumia.com online shopping in Egypt)

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