Latest / The Pricing Marketing Podcast with Fexingo: Price Anchoring, Bundling, and Conversion Pricing
How a $19.99 Price Became Twenty Dollars
In this episode, Lucas and Luna explore the surprising psychology and economics behind the 'just-below' pricing strategy — when $19.99 feels significantly cheaper than $20.00, and when it doesn't. Focusing on a 2025 MIT study that tracked eye movement and purchase decisions across 4,000 real online transactions, they drill into the specific conditions where left-digit anchoring works, the categories where it backfires, and why some luxury brands deliberately round up. Lucas brings data on conversion-rate lifts from a major apparel retailer's A/B test, while Luna challenges…
The skinny
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