Take a stroll through any supermarket or browse your favorite online retailer and you’ll see prices ending in .99 more often than not. Why is that? What’s the psychology behind that kind of pricing? BrainStuff has the answers to those questions and more in a new video Why Do Price Tags End in .99? The video introduces viewers to the retail psychology concepts of bargain signalling and rounding off.

Check out the notes on YouTube below BrainStuff’s video to see the sources and studies they used in making the video.

This video is a good companion to The TED-Ed lesson Why do competitors open their stores next to one another? in which students learn why retail stores are found next to each other.