Food King grocery stores offer candy bars in the checkout lanes for $0.99 rather than $1.00. This use of _____ pricing should help increase sales of the candy bars.

Question

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This use of odd-number pricing where the candy bars are priced at $0.99, instead of $1.00, is aimed at exploiting the psychological principle called the "left-digit effect". This effect suggests people tend to perceive a price difference between two adjacent digits to be larger than it actually is. So, people are more likely to perceive the price of $0.99 as closer to $0 than to $1. Therefore, the odd-number pricing strategy can make customers think that they are getting a good deal and increase the likelihood of purchasing the candy bars.

Food King Grocery Stores Offer Candy Bars in the Checkout