Odd-even pricing

Definition

Odd-even pricing is a psychological pricing strategy where prices are set just below a round number to make the price seem lower than it actually is. For example, pricing an item at $9.99 instead of $10 to encourage more purchases by creating the perception of a bargain.

Related terms

Psychological Pricing:

A pricing strategy that considers the psychological impact on consumers and not simply the economics; it aims to encourage purchases based on emotional rather than rational responses.

Price Perception: The customer's view of and response to the price of a product or service, which can significantly influence their decision-making process and perceived value.

Market Penetration Pricing: A strategy used to attract customers to a new product or service by offering a lower price initially compared to competitors, aiming for quick market share growth