Odd-Even Pricing

Definition

Odd-even pricing is a form of psychological pricing that suggests buyers are more sensitive to certain ending digits.

Odd price refers to a price ending in an odd number (e.g., 1,3,5,7,9), or to a price just under a round number (e.g., $0.89, $3.99, $44.98).

Even price refers to a price ending in a whole number or in tenths (e.g., $0.50, $5.00, $8.10, $75.00).[1]

 

References

  1. ^ American Marketing Association, AMA Dictionary.

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