In the process of selling goods and services to consumers, companies must decide on a reasonable price for which they want sell their goods. The decision on the price of goods and services by a company is mostly driven by economic concerns. However, psychological factors also need to play a role since the customer’s buying decision is a psychological evaluation of the product’s properties including its price.
Rounded or non-rounded prices it has effect on consumers which students are inclusive. Rounded or non-rounded prices determine and influences on the purchasing power of consumers. Since rounded numbers are more prevalent in everyday communication and are more fluently processed, it is argued that rounded numbers increase the reliance on an emotional evaluation of the subject, lead customers to stronger rely on their feelings when evaluating a product. Most consumers belief that non-rounded numbers against rounded numbers in goods and services increases a reliance on thoughts and cognitive judgment. Therefore, the purchase of goods by consumers is based on both emotion and cognitive reasoning. If consumers are in an emotional state for instance they are buying products for their own personal use, products are more evaluated if the prices are rounded, as rounded numbers are more fluently processed in this case. However, if consumers are cognitively driven in terms of purchasing goods for instance purchasing a product for work or school, those products will be evaluated if the price is non-rounded. Rounded Price effect, is hypothesized to be mediated through a sense of feeling right.
PRICE OF COMMODITIES
A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. Commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it is essentially uniform across producers.
In economics, a commodity is an economic good that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them. Commodity prices are the discounted sums of rational expectation of future' payoffs associated with holding the commodity. The price of a commodity good is typically determined as a function of its market as a whole.

PRICE OF COMMODITIES AND CONSUMER PREFERENCE

Non-round prices, which are associated with discounts and lower prices, may communicate that a product is a good deal and this may increase choice and/or sales under circumstances that enhance the salience or importance of low prices for instance for commodity products, when brand recognition is high, and/or for price conscious consumers. Round prices, which are associated with high quality, may communicate that a product is of high quality and this may increase choice and/or sales under circumstances that enhance the salience or importance of product quality for instance for differentiated products, when brand recognition is low, and/or for quality conscious consumers.
However, there is a better way to test for consumer preferences for round numbers is to allow consumers to choose the prices they actually pay for goods and services and to see if they disproportionately choose to pay round prices.

ROUNDED PRICE EFFECT AND STUDENTS PURCHASE INTENTION

Students purchase intention is highly dependent on how they perceive a products as well as price. Rounded price has effect on purchase intention of students as they may have perceive and evaluate goods that have rounded prices than non-rounded prices goods. For instance, students may walk into a shopping mall or supermarket to purchase a particular good or goods, on reaching there if the prices of the goods he/she intends to purchase has rounded price it’s more evaluated and increases the pleasure of purchasing that products. The effect of rounded price effect is also seen in the purchase of books, project materials, beverages etc. This is mostly seen when a customer is purchasing a particular products for his/her personal use. But when a customer is purchasing products for school or work, the non-rounded price products are more appreciated and evaluated.

CONCLUSION

In conclusion, companies should understand how their customer see and perceive rounded and non-rounded prices on goods and services. They must understand that customers purchase can be based on emotion or cognitive driven as the case may be.