“…the average person treats a price ending in .99 as if it were 15 to 20 cents lower.”

The tendency is called left-digit bias, when the leftmost digit of a number disproportionately influences decision-making. In this case, even though the real difference is only a penny, research shows that, to the average person, $4.99 seems 15 to 20 cents cheaper than $5.00 – which results in selling 3 to 5 percent more units than at a price of $5.00"

Why Literally (Almost) Every Price Ends in 99 Cents

https://en.wikipedia.org/wiki/Psychological_pricing

    • sparkitz@lemmy.worldOP
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      7 months ago

      Ending in 98 or 97 or whatever does not negate it. You focused too much on that 99.

      “…when the leftmost digit of a number disproportionately influences decision-making”