Odd Even Pricing
This article covers meaning & overview of Odd Even Pricing from marketing perspective.
What is Odd Even Pricing?
Odd Even pricing is a type of psychological pricing based on the belief that buyers are more sensitive to certain ending digits & some of the prices appeal more to buyers.
This method of pricing involves setting a price ending in odd numbers just under a round number.
For example instead of pricing at $50, the retailer would price the product at $49.95. The common hypothesis behind this pricing strategy is that the consumer perceives the price $49.95 as just above $40 and not just below $50. Thus, the perceived price is lower than the actual price & the retailer is able to attract more customers without even reducing the price by a big margin.
On the other side even pricing refers to the pricing ending in whole numbers or in tenths like $20, $2.50, $75.00.
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