Psychology of Pricing Read online 1) Charm Pricing for High-Quality Products Imagine you’re buying a shatterproof iPhone case Does it matter if it is priced at £49.99 or £49.95? Well, yes. Apple uses charm pricing but usually ends prices with a 5. Gendall, Fox, and Wilton (1998)¹ ran an experiment with fast-moving consumer goods (fly spray, cheese) and durables (electric kettles). They found that prices with endings in 99 cents are more attractive for low-priced, fast-moving consumer goods...

Unit Asking Read online Which of these articles encouraged Brits to donate more? It's the one on the right. Research by Christopher Hsee¹ found that donors gave nearly twice as much when first asked to consider the needs of a single person before being asked to donate to a larger cause. This “unit asking” strategy made contributions feel more reasonable and personal. And it explains this² rather bizarre study: The study looked at the success rate of donation requests on the...

Hyperbolic Discounting Read online One of these ads looks 108% better value. Can you guess which? In 2025, Shotton and Flicker¹ tested ads like this in their book. 282 consumers were shown Sierra Nevada Pale Ale priced at $18.99 for 12 bottles. Half were told this equated to $1.58 per bottle. Among those shown the per-bottle price, 28.6% said it was good or very good value (more than double the 13.7% who only saw the total price). Framing the cost at the per-unit level made the purchase feel...