The next time you visit a Costco warehouse store, observe the price tags. In addition to showing the cost of an item, Costco’s price tags encode unique information. The price endings, such as $8.99 versus $8.97, convey special meanings to the subset of shoppers who are literate in Costco’s price vocabulary.
What a “Price Vocabulary” Is, and Why Companies Need One
At Costco, it isn’t random that prices end in .99 or .97.
August 07, 2019
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Summary.
A price vocabulary is a unique and consistent set of prices — particularly price endings, plus other symbols such as glyphs, numerical codes, and sale tags of specific colors — that a seller can use to convey informational cues to consumers. It provides a novel and inexpensive way to create sustainable differentiation and increase customer engagement. But most retailers haven’t embraced the price vocabulary as a marketing program, despite advantages like the ability to reward loyal customers.