Round Pricing Preference

We prefer and trust whole numbers over those ending in a 9

Whole prices have a powerful effect on perceptions of honesty and quality, particularly for more expensive, pleasurable or ethical products.

Wieseke, Kolberg & Schons (2016). Life could be so easy: The convenience effect of round price endings. Journal of the Academy of Marketing Science.

The study

Setup

306 people visited one of three coffee shops and were asked to buy a coffee at either: €0.99, €1, €1.01 or an orange juice that was €0.15 cheaper than the respective coffee price.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Results

Results showed that, contrary to conventional research on pricing (shown by the dashed line), the round-priced coffee saw the highest % of sales.

np_read_2490885_000000

In detail

Key Takeaways

Use round prices to reduce fatigue.

There’s a growing trend for cognitive convenience in the face of Time Scarcity and Analysis Paralysis

A banana costing £1 is easier and faster to process mentally than one costing £0.95. UK retailer Tesco now adopts this specifically for promotions.  

If your brand places a value on saving time and energy, consider doing the same.

Use for premium, green or pleasurable products.

Marks & Spencer (UK), Saks (US) and Levi’s now adopt round pricing, showing the zeros. Doing so signals brand quality, warmth and trust.

 Use to nudge secondary behaviors.

For transactions, add a Foot In The Door to give the rounded difference to charity (supermarket), savings (banks) or tips (fast food), for example.

Round Pricing Preference

We prefer and trust whole numbers over those ending in a 9

Whole prices have a powerful effect on perceptions of honesty and quality, particularly for more expensive, pleasurable or ethical products.

Wieseke, Kolberg & Schons (2016). Life could be so easy: The convenience effect of round price endings. Journal of the Academy of Marketing Science.

The study

Setup

306 people visited one of three coffee shops and were asked to buy a coffee at either: €0.99, €1, €1.01 or an orange juice that was €0.15 cheaper than the respective coffee price.

Results

Results showed that, contrary to conventional research on pricing (shown by the dashed line), the round-priced coffee saw the highest % of sales.

Key Takeaways

Use round prices to reduce fatigue.

There’s a growing trend for cognitive convenience in the face of Time Scarcity and Analysis Paralysis

A banana costing £1 is easier and faster to process mentally than one costing £0.95. UK retailer Tesco now adopts this specifically for promotions.  

If your brand places a value on saving time and energy, consider doing the same.

Use for premium, green or pleasurable products.

Marks & Spencer (UK), Saks (US) and Levi’s now adopt round pricing, showing the zeros. Doing so signals brand quality, warmth and trust.

 Use to nudge secondary behaviors.

For transactions, add a Foot In The Door to give the rounded difference to charity (supermarket), savings (banks) or tips (fast food), for example.

Round Pricing Preference

We prefer and trust whole numbers over those ending in a 9

Whole prices have a powerful effect on perceptions of honesty and quality, particularly for more expensive, pleasurable or ethical products.

The study

Setup

306 people visited one of three coffee shops and were asked to buy a coffee at either: €0.99, €1, €1.01 or an orange juice that was €0.15 cheaper than the respective coffee price.

Results

Results showed that, contrary to conventional research on pricing (shown by the dashed line), the round-priced coffee saw the highest % of sales.

np_read_2490885_000000

In detail

Pairings

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Connected to

Running workshops?

Round Pricing Preference

is included in Box One of our physical workshop tool.
is included in Box Two of our physical workshop tool.
Box Two