What is odd-even pricing designed to influence?

Odd-even pricing is a strategy intended to influence consumers' perception of price or product value. This pricing technique involves setting prices that are not whole numbers, often ending in 9 or another odd digit, which can lead consumers to perceive the price as being more attractive or a better deal. For example, pricing an item at $19.99 rather than $20.00 subtly implies a lower price point and can suggest greater value to the buyer.

The effectiveness of odd-even pricing lies in psychological pricing principles. By making a price appear slightly lower through these tactics, businesses can tap into consumer behaviors and emotional responses, leading to increased sales. This strategy focuses directly on how the price is viewed by consumers, rather than on production costs, competitive pricing, or fairness across brands, which are not the primary goals of odd-even pricing.