Also known as the “nine and zero effect,” [19] even-odd pricing can be used to communicate
quality or value. It assumes that consumers are not perfectly rational, which is true. Emotion
plays a much larger role in consumer behavior than rationality.
Even-numbered pricing, or setting selling prices in whole numbers (e.g., $20), conveys a higher-
quality image. A small, high-end gift shop, for example, would use even pricing for most if not
all its products, with odd-numbered prices (e.g., $18.97) used for products that are on sale. Odd-
numbered prices give consumers the impression that they are getting a great value. It is a
psychological effect with no basis in logic. But it does work in practice.