odd even pricing

Popular Terms
Psychological pricing method based on the belief that certain prices or price ranges are more appealing to buyers. This method involves setting a price in odd numbers (just under round even numbers) such as $49.95 instead of $50.00. Originally, this practice was meant to prevent pilfering of cash by forcing a cashier to open the cash-register (to pay change to the customer) and thus register the transaction. Although not supported by any research findings, its proponents claim that the consumers see a $49.95 price as 'just above $40' and not as 'just below $50.'


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