Mounting evidence suggests that consumers’ desire to deal in clean, round numbers trumps their hope that odd prices signal some kind of sale.
Lynn, Flynn, & Helion (2013) Do Consumers Prefer Round Prices? Journal of Economic Psychology
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.
Takeaways for decision-makers
Consider consumers’ overwhelming preference for whole amounts when setting your prices or defining your pricing strategy. They’ll thank you for it with their loyalty.
Given our natural inclination to follow suit with our tipping and petrol, appreciate that the round-pricing preference is a fundamentally-human tendency. Consider then the positive, human-friendly impact upon your brand of mirroring this bias.