Year: 2011
Type: report
Study design: Observational Study
Abstract: This research addresses the persuasive effect of 99-ending prices and carries out a choice-based \nconjoint analysis among 318 shoppers. We propose that 99-ending prone consumers engage in a heuristic \nprocess either consciously — they consider a 99-ending as a signal for a “good deal”— or unconsciously — \nthey round down 99-ending prices. This conceptual framework leads to non-intuitive and completely new \nsets of hypotheses in the examination of the drivers, mediator and moderators of 99-ending preferences. \nResults indicate that consumers who are more price conscious are more likely to choose 99-ending prices. \nIndeed, low involved shoppers (especially those with a low hedonic and symbolic involvement profile), low \neducated, low income and younger shoppers are prone to choose the 99-ending option. We also \ndemonstrate that the magnitude of this 99-ending effect depends on the price level of the product \ncategory and the positioning of the brands. The theoretical contributions to the manner in which \nconsumers process 99-endings has implications for retailers, pricing managers and social welfare
Author: Charlotte Gaston‐Breton
Language: English
Subfield: Marketing
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2103699584