Chunk It & Move from 9’s to 1’s

Why does a $2111 price sound better to the shopper than a $1999 price? Researchers at Sabanci University and Koç University attribute it to how the shopper’s brain clumps repeated digits together. A clump of 1’s feels like more of a discount than does a clump of 9’s. The effect is on the shopper’s judgment of whether the price is likely to reflect a discount, not necessarily whether the shopper ends up purchasing the item.
     This suggestion to end your prices in a clump of 1’s adds to the list of exceptions to the overall rule to end prices in 99. But note that using the repeated 1’s worked with prices containing no more than three repeated digits, with the three at the end of the price. In the studies, four-digit whole-dollar prices were used. Compare this with research which shows that 99-ending prices are not as attractive to shoppers looking for luxury items sought for quality materials and construction. That research looked at prices with three digits to the left of the decimal and recommends using even-ending prices, such as $500 instead of $499, for instance.
     The advice to end in a clump of 1’s is consistent with studies showing you can make a discount look more attractive by filling it with 1’s and 2’s. A discount from $222.99 to $211.99 looks more attractive to most customers than a discount from $199.99 to $188.99, although the second discount is actually a larger percentage of the regular price.
     The repetition of the sound of the digits in a long price for those who don’t clump also can make a difference. For example, which of these fetches the most favor from folks seeking a flapjack flavor? 

• 4 Pancakes: $3.87 
• 4 Pancakes: $4.13 
• 4 Flapjacks: $3.87 
• 4 Flapjacks: $4.13

     The correct answer is the last of the alternatives. I’ve listed the four alternatives in order from least to most compelling to consumers.
     Researchers at University of Miami, Virginia Tech, and Baruch College say the explanation lies in alliteration—the use of the same initial sound in words within the same group. The three “f” sounds in that fourth choice lead to positive evaluations because the similarity of the sounds makes the phrasing seem more familiar; what is familiar is easier for the brain to process; and what’s easier for the brain to process is liked more, everything else being equal.

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Expect Exceptions to 99-Ending Pricing 

Specify Odd-Ending for Conspicuous 

Discount for Shoppers’ Eyes & Ears 

Ally with Alliteration