Charm Pricing Works, But Only for Some Categories

Nine-ending prices can lift volume but can undercut premium signals.

Left-digit bias works differently across value and premium positioning.

Operating Question

What reference price, alternative, or comparison context is shaping this decision?

Why It Matters

Left-digit bias works differently across value and premium positioning.

Supporting Evidence

Kenneth Manning and David Sprott; Anderson and Simester.

Research Notes

Test pricing changes in the actual category and customer context before generalizing the mechanism.

Practical Actions

Use charm for value tiers; round prices for premium; test category fit.

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