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When and Why the Left-Digit Bias Works for Retailers

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We noticed that you are using Internet Explorer 11 or older that is not support any longer. Please consider using an alternative such as Microsoft Edge, Chrome, or Firefox. Notice: We are experiencing a technical issue with member pricing. If you are a member and want to make a purchase, please contact CustomerSupport@AMA.org 9.22.2020 Ruoou Li and Sphurti Sewak Journal of Marketing Research Scholarly Insights are produced in partnership with the AMA Doctoral Students SIG – a shared interest network for Marketing PhD students across the world. In your last trip to the grocery store, you probably noticed many prices end in “99.” Why do marketers price products this way instead of rounding prices to the nearest whole dollar? While it may seem surprising, such pricing strategies have been very effective in increasing sales by taking the advantage of the left-digit bias. The left-digit bias describes a phenomenon in which consumers’ perceptions and evaluations are disproportionately influ

Journal of Marketing Research Scholarly Insights are produced in partnership with the AMA Doctoral Students SIG – a shared interest network for Marketing PhD students across the world. In your last trip to the grocery store, you probably noticed many prices end in “99.” Why do marketers price products this way instead of rounding prices to the nearest whole dollar? While it may seem surprising, such pricing strategies have been very effective in increasing sales by taking the advantage of the left-digit bias. The left-digit bias describes a phenomenon in which consumers’ perceptions and

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