Psychological pricing is a marketing strategy that aims to influence consumer perception and behavior by setting prices in a way that appears more attractive. For example, pricing an item at $9.99 instead of $10.00 can make it seem significantly cheaper, even though the difference is just one cent. This tactic leverages the way people process numbers and can lead to increased sales. Another common technique in psychological pricing is the use of charm pricing, where prices end in .99 or .95. This approach is based on the idea that consumers tend to focus on the first digit of a price, making $19.99 feel closer to $19 than to $20. Such strategies are widely used in retail and can effectively drive consumer purchases.