Odd pricing can backfire if misapplied, especially with respect to service industries.

Question

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Odd pricing or setting prices with odd numbers (such as $9.99 instead of $10) can create the perception of a lower price but can backfire if misapplied. This is because consumers may perceive odd pricing as a tactic to manipulate them, causing them to feel less trust and satisfaction with the business. This effect can be even more pronounced in service industries, where trust and satisfaction play a crucial role in building customer loyalty. Therefore, businesses should be careful when using odd pricing and make sure it aligns with their overall brand perception and customer expectations.

Odd Pricing Can Backfire If Misapplied, Especially with Respect to Service