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That's been debunked. Every consumer just auto-rounds in their head. Companies keep doing it because of tradition more than anything else. It is a wise trick

That's been debunked. Every consumer just auto-rounds in their head. Companies keep doing it because of tradition more than anything else. It is a wise trick, and exactly the job of government -- to prevent the public from getting tricked by businesses.

rkomorn 1y ago
> That's been debunked. Every consumer just auto-rounds in their head. Has it? I'm searching around and not coming up with much that says that's the case. On the other hand, here are some recent-ish links that suggest it still works: - https://www.rd.com/article/why-prices-end-in-99/ https://www.rd.com/article/why-prices-end-in-99/ - https://capitaloneshopping.com/research/pricing-psychology-statistics/ https://capitaloneshopping.com/research/pricing-psychology-s... This one suggests it depends on the consumer, with "highly numerate" consumers being less likely to think the price is lower (but presumably also less common in the customer pool): - https://business.missouri.edu/about/news/99-ending-prices-are-they-really-effective-we-assume https://business.missouri.edu/about/news/99-ending-prices-ar... Edit: searching for "charm pricing" specifically suggests it does work, but I suppose maybe there's some bias on the context in which people use that term.