It would be wrong, in many cases, to consider your market to be dumb or uneducated. However, there is much evidence to suggest that we all are. One study, replicated many times, found that consumers felt that an item was more expensive when the tag read $1,858 than it was when the tag read $1858. […]

It would be wrong, in many cases, to consider your market to be dumb or uneducated. However, there is much evidence to suggest that we all are. One study, replicated many times, found that consumers felt that an item was more expensive when the tag read $1,858 than it was when the tag read $1858. At a conscious level, when questioned, consumers appreciated that these two tags detailed precisely the same price, but on a subjective level, accessing what Daniel Kahneman calls ‘System One’ thinking (which drives most purchases) the perception was different. As it turns out, the versions of prices that had commas in them appeared bigger than the versions without commas. A tiny visual cue changed the way the price itself was perceived. This is just one of many nuances of pricing that might not be readily intuitive. Others include: The size of the font – the sale…