Manoj Thomas studies how the human brain responds to posted prices, and how it decides whether or not to buy a new product.
... prevalence of ".99" in pricing? Thomas attributes that to a different psychological mechanism: Left-digit anchoring. He found that consumers often perceive the price to be lower than if the price were rounded to the next dollar. "Because people read from left to right, they tend to anchor their judgment of price on the left-most digit," he says. So a price of $1.99 will seem to the potential buyer to be closer to $1 than to $2.
Read More>>>The Johnson School, Cornell University
