Offer Discounts in Round Numbers

Round numbers seem larger.

Nick Kolenda
Updated on
$25 off

Specific prices (e.g., $21.87) seem smaller (Thomas, Simon, & Kadiyali, 2007).

Therefore, choose round numerals for discounts to enlarge their perceived size.

Plus, rounded discounts are easier to calculate. And numerical differences seem larger when they are easy to calculate (Thomas & Morwitz, 2009).

  • Thomas, M., & Morwitz, V. G. (2009). The ease-of-computation effect: The interplay of metacognitive experiences and naive theories in judgments of price differences. Journal of Marketing Research, 46(1), 81-91.
  • Thomas, M., Simon, D. H., & Kadiyali, V. (2007). Do consumers perceive precise prices to be lower than round prices? Evidence from laboratory and market data. Johnson School at Cornell University Research Paper, (09-07).