Charm pricing is a marketing strategy that involves setting prices just below a round number, such as $9.99 instead of $10. This technique plays on the psychological tendency of consumers to perceive prices ending in .99 as significantly lower than they actually are. By using charm pricing, businesses aim to attract more customers and increase sales. This pricing method is commonly seen in retail, restaurants, and online shopping. For example, a grocery store might price a product at $4.99 to make it seem more appealing. Overall, charm pricing can effectively influence buying behavior and enhance customer satisfaction.