Mounting evidence suggests that consumers’ desire to deal in clean, round numbers trumps their hope that odd prices signal some kind of sale.
Regardless of the seemingly-limitless number of 99p stores and £*.99 price tags we see on our high street and shopping malls, consumers appear to favour round numbers when paying for goods and services.
Rather naturally, when given the option of paying what they want, we often choose round pay-what-you-want prices. We often leave tips that sum with the bill to a nice round amount. we also often put amounts of petrol into our cars that result in round sales totals. We crave simplicity with every transaction.
Do consumers prefer round prices? Evidence from pay-what-you-want decisions and self-pumped gasoline purchases (Lynn, Flynn & Helion, 2013)