The Left Digit Effect in Pricing Strategy EssayHave you ever come across price tags that have 9 endings? Have you ever bought those merchandise with 9 endings thinking that was the best deal and ended up with an enormous bill? Do you notice that the 9 endings are usually printed in a much smaller size than the digits on the left? This is a result of a psychological concept called “The Left Digit Effect†in which people tend to pay more attention to the left-most digits than the ones on the right. The idea has been widely used for decades for its great impact on consumers’ shopping behavior.Nine endings can easily be seen everywhere: stationeries of $1. 99, $4. 99 in bookstores, cars of $2,999, $5,999 in a dealership, real estates of $199,999, $299,999 on the market. It is interesting how such a small change can make a price tag seem significantly lower than another one of just one cent or one dollar higher, as well as greatly affect consumers’ decision. Even the smartest shoppers can fall for this little trick.
