The left-digit effect is a psychological phenomenon where consumers process the first digit of a price before finishing reading the entire number, causing them to perceive prices ending in 99 (like $19.99) as significantly cheaper than round numbers (like $20.00), even when they are fully aware of the marketing tactic.
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how a price ending in 99 still works on people who know exactly whyAdded:
This is why a price ending in 99 works on every person.
Take for instance, a manager who sees a $19 tag and buys it.
That same manager who usually checks every receipt now walks past the register.
Kenneth Manning at Washington State found people read the first digit, then stop.
It works the same way for a nurse who sees 49 and buys.
And that same nurse who usually saves money now fills a shopping basket daily.
Which is why the first number seen creates the value before the rest.
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