How Price Gaps Drive Consumer Behavior

Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers · Oct 27, 2026 · 8m · transcript

We look at how retailers use psychological price gaps, specifically the jump from nine to ten dollars, to influence buying decisions. Using data from major grocery chains and tech platforms, we explore why customers often skip items just above a round number threshold. Lucas breaks down the behavioral economics behind these thresholds, while Luna examines real-world examples where small price increases lead to disproportionate drops in volume. We also discuss how companies like Amazon have shifted away from these tactics in favor of dynamic pricing algorithms that adjust based on demand…