What is odd numbered pricing?
What is odd numbered pricing?
Odd-numbered pricing is based on setting a price just below even number. Odd pricing strategy is used to give consumers perception that a product is less expensive, which connotes a bargain.
Why ending your price in an odd number will increase your sales?
It’s science. The data compiled showed that items listed using even numbers — multiples of $100 — ultimately received offers that were 8-12% lower than similar items listed using odd numbers and created more back and forth negotiations. …
Do odd numbers sell better?
Generally speaking, odd prices are seen as lower and are considered a better deal, which is why odd numbers are used when a business wants to motivate shoppers to buy their product. Even prices and round numbers are usually used for premium products and to target consumers who are not price-sensitive.
What is odd-even pricing and how does it work?
What is Odd-Even Pricing? Odd-even pricing is a pricing strategy involving the last digit of a product or service price. Prices ending in an odd number, such as $1.99 or $78.25, use an odd pricing strategy, whereas prices ending in an even number, such as $200.00 or 18.50, use an even strategy.
Should odd numbered prices be part of your pricing strategy?
If buyers see odd numbered prices as bargains, that perception should play into the pricing strategy of those businesses aiming to be perceived as discounted retailers. Odd pricing refers to a price ending in 1,3,5,7,9 just under a round number, such as $0.19, $2.47, or $64.93.
What percentage of prices end in an odd number?
According to a 1997 study reported in Marketing Bulletin, more than 90% of advertised prices at that time ended in an odd numeral. The economy has changed and shoppers are certainly savvier today, but it is likely that a majority of prices still end in an odd number.
What are the psychological effects of odd pricing?
Another issue is linked to the psychological effects associated with odd pricing. Products whose prices end in “.99” are often perceived as promotional or cheap items. Therefore, it is probable that modifying the last digit in a price changes the perception of product quality.
