Saturday, August 23, 2008

Pricing Just Under Whole Numbers

Apparently French researchers say it works. From the Economist Blog:

[A]ccording to a French study the phenomenon still swings a considerable number of shoppers. Researchers found that lowering the price of a pizza from 8.00 euros to 7.99 euros boosted sales by 15%.
Maybe it's just the French? Alternative explanations here (Tim Hartford @FT) and here.

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