Why exactly ₹99, ₹199, or ₹499? How does a difference of one rupee change your purchasing decision?

₹99 instead of ₹100, ₹199 instead of ₹200, and ₹999 instead of ₹1000—why don't shopkeepers and online companies simply use round figures for prices? If you have ever shopped online or in a market, you have surely encountered such price tags. At first glance, a difference of ₹1 seems trivial, but this pricing strategy can influence a customer's mindset and purchasing decisions. This is known as "Psychological Pricing."

Why does ₹999 feel lower than ₹1000?