The strategy that empties our pockets. How the tiny difference of a penny manipulates our perception
“Buy two products for 99.99 lei” or “it costs only 9.99 lei” – these are formulas we see everywhere. From supermarket shelves to major online stores, prices ending in “.99” seem ubiquitous. Although the difference to a round price is tiny, the effect on our perception is surprisingly large. Specialists explain why this strategy, known as psychological price, continues to work and how it influences our purchasing decisions.
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What is psychological pricing and how did it come about?
The practice of 9.99 or 99.99 pricing – known in straight marketing psychological price or odd pricing – is a strategy where traders set prices slightly below a round threshold to make them appear lower than they really are.
The concept is not new at all. It appeared at the end of the 19th century, in the United States, with the development of department stores. One frequently cited explanation: 9.99-type prices forced cashiers to open the cash register to give change, thereby reducing the risk of fraud. Later, merchants noticed that these prices not only better control the flow of money, but also stimulate sales, because they give the impression of a better deal.
Over time, the strategy was refined and integrated into modern marketing, becoming one of the simplest and most effective techniques for influencing purchasing decisions. Financial education trainer Adrian Asoltanie says:
In principle, marketing is based on four pillars. It's about the four P's: product (or service), promotion, positioning (or distribution) and price. There are certain times when price becomes a very important component in the purchase decision, especially when people are thinking twice whether to buy or order a product and are very price sensitive.
Although the difference is, most of the time, minute, the impact on consumer perception is significant. Psychologist Dorina Stamate explains that it all starts with what specialists call the left digit effect:
“The left digit effect is a phenomenon based on how our brain prioritizes speed over accuracy. Because we read from left to right, the first digit we process anchors the value of the whole product in our minds before we get to the decimals.”
These prices, says the psychologist, create the illusion of the economy:
,,In our subconscious, round prices (like 100) are associated with 'list' or premium prices, while prices ending in 9 suggest that the retailer has tried to undercut the price to give you the best possible deal. This small distortion tricks our brain's reward center into giving us the false satisfaction of having made a smart purchase and saved resources, even if the economy is purely symbolic“.
The “good deal” illusion and emotional satisfaction
In addition to this mental shortcut, there is also a strong emotional component: the feeling of having made a good deal.
“Prices ending in 9 suggest that the retailer has tried to undercut the price to give you the best possible deal. This small distortion tricks our brain's reward center, giving us the false satisfaction that we've made a smart purchase“, explains Dorina Stamate.
The same idea is confirmed by financial education trainer Adrian Asoltanie:
We all have to admit that we feel good when we make a purchase at a price below list price, even if it's just a perception. The mind sometimes tends to trick us and sell us this story that we've made a good hill, that we've had an opportunity and that we've made a deal, so to speak, buying, lo and behold, even a few bucks apart.
Who is more vulnerable to such tactics?
Not all consumers react the same way. Some people are more sensitive to this type of influence. Psychologist Dorina Stamate explains:
“People with a high degree of impulsivity and those oriented towards immediate gratification are the most exposed to these tactics. In psychology, we talk about individuals who have a highly sensitive behavioral activation system, which means that they are strongly motivated by stimuli that promise a reward. For these people, the sight of a seemingly lower price triggers a release of dopamine that eclipses logical analysis, making the desire to possess the object become much stronger than the correct evaluation of cost. The brain becomes hyper-vigilant at any sign of a 'bargain', causing us to ignore the wider context“.
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An analysis from 2025 suggests that younger or less experienced consumers are also more likely to choose prices ending in '99'.
When we're tired, we become more persuasive customers
And the context in which we shop matters. Stress and fatigue reduce the ability to analyze.
“Stress and fatigue exhaust what we call the executive functions of the brain, located in the prefrontal cortex. This area is responsible for self-control, planning and critical analysis; however, when we are overwhelmed, it loses power, leaving the limbic (emotional) system at the wheel. In a state of chronic fatigue, we no longer have the mental energy to mentally 'round' the prices, so we simply accept the first visible figure as the reality, becoming much more suggestible to marketing gimmicks.”says the psychologist.
And store congestion can be a factor.
“The sensory overload of a crowded store can completely disarm us. When we're bombarded with lights, music, and a plethora of options, the brain goes into energy-saving mode and starts relying on primal instincts. In those moments, the price of 49.99 is no longer analyzed as 50, but is perceived as a shortcut to the completion of the purchase task, allowing us to get out of an environment that overloads us more quickly.”says Dorina Stamate.
Does it work on any type of product?
The effectiveness of psychological pricing differs depending on the product category, says financial education trainer Adrian Asoltanie:
It works better on slightly cheaper products, because generally they will also appeal to people who are more price sensitive. When we talk about expensive products or expensive services, there the difference is no longer made at the level of a few pennies or a few lei – although believe me that even people with a lot of money are attentive and eager for opportunities and offers and even hunt them with great interest. But when we talk about more expensive products or services – cars, vacations – then other factors are used, such as time gained, importance of the experience, rarity or uniqueness.
Other “tricks” that influence our decisions
Obviously, psychological pricing isn't the only tactic used by big box stores to get us to buy more. Adrian Asoltanie mentions a novel trick:
Some stores place the pastry section at the entrance because it has been observed that sweet aromas or the aromas of fresh pastries tend to increase the appetite of consumers for more purchases. You simply put more items in the shopping cart.
Another very effective mechanism, says Asoltanie, is “limited quantity” or rarity:
“The fact that there is a limited number of products or places is a very effective trigger of the purchase decision. It works, for example, in supermarkets that change certain product ranges frequently, sometimes weekly or even every few days. So we have the basic products that we find all the time, but there are also districts or categories that run, the products change every few days and then this triggers the purchase decision.”
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This strategy is also used in areas such as real estate:
If you don't sign in a few days, you risk losing the apartment. A complex process is thus greatly shortened.
Can we protect ourselves from such selling strategies?
Psychologist Dorina Stamate says yes, but it takes time and conscious effort. The specialist also proposes a technique:
Whenever you see a price ending in 9, force yourself to mentally say the price rounded up. This action moves processing from the intuitive to the analytical level.
Deliberate breaks can also make a difference:
“Introducing a strict rule such as the '10-minute rule' or the '24-hour rule' for non-essential purchases allows the emotion of the moment to dissipate. During this interval, the brain chemistry stabilizes and the prefrontal cortex becomes active again, allowing you to see the 199.99 product not as an opportunity that cannot be refused, but as an expense of 200 lei that must be justified by real utility, not by the illusion of a discount”.
