Why is odd-even pricing frequently utilized by marketers?

Odd-even pricing is a strategy often employed by marketers to influence consumer perceptions of value, and this is primarily accomplished through the psychological impact of price endings. Setting a price that ends in an odd number—such as 9.99 instead of 10.00—can create the perception of a bargain or a better deal. Customers tend to focus more on the first digit of the price, and as a result, the price appears significantly lower than it actually is. This pricing technique taps into consumer psychology, suggesting that even a small difference in price can lead customers to feel they are receiving superior value or a discount, thereby encouraging purchase decisions.

This approach helps marketers position their products more attractively in the marketplace, enhancing the chances of attracting price-sensitive consumers. In essence, odd-even pricing goes beyond just the numerical value of a price; it encompasses the strategic use of pricing to shape consumer behavior and perceptions effectively. Other options do not align as closely with this psychological aspect of pricing strategy.