Left Digit Pricing || Definition Minute || Behavioral Economics in Marketing Podcast

Left-digit pricing is a pricing strategy where the leftmost digit of a product's price is reduced by one unit, such as pricing an item at $9.99 instead of $10. This psychological pricing technique takes advantage of the way consumers perceive prices, as the reduction of that leftmost digit tends to make the price appear significantly lower, even if the actual difference is minimal. Left-digit pricing is widely used in retail and marketing to create a perception of affordability and attract price-sensitive consumers. By setting prices just below the next whole number, businesses aim to influence consumer perceptions and increase the likelihood of purchase, leveraging the impact of perceived affordability on consumer behavior.

 

📎 Definition Minute is a new subset of the Behavioral Economics in Marketing podcast. In these mini-episodes, I will define economic theories, in a minute or two. The topics will be review, introductory or discrete in nature. 

 

Behavioral Economics in Marketing Podcast | Understanding how we as humans make decisions is an important part of marketing. Behavioral economics is the study of decision-making and can give keen insight into buyer behavior and help to shape your marketing mix. Marketers can tap into Behavioral Economics to create environments that nudge people towards their products and services, to conduct better market research and analyze their marketing mix.

Sandra Thomas-Comenole | Host | Marketing professional with over 15 years of experience leading marketing and sales teams and a rigorously quantitative Master’s degree in economics from Rensselaer Polytechnic Institute. Check out her Linkedin profile here: Sandra Thomas-Comenole, Head of Marketing, Travel & Tourism