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Price Endings, Left‐Digit Effects, and Choice
Kenneth C. Manning and David E. Sprott
Journal of Consumer Research
Vol. 36, No. 2 (August 2009), pp. 328-335
Published by: Oxford University Press
Stable URL: http://www.jstor.org/stable/10.1086/597215
Page Count: 8
You can always find the topics here!Topics: Prices, Consumer prices, Shopping, Price levels, Consumer spending, Pricing, Regression analysis, Point of sale, Import prices, Product choice
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Past research has found that changes in price endings can result in “left‐digit effects” whereby the magnitude of an item’s price relative to the price of a reference product is influenced by the leftmost digits of both prices. We extend this work by investigating the impact of changes in price endings and associated leftmost price digits on choice. Findings indicate that assigning different combinations of price endings to two products (e.g., $2.00 and $2.99 vs. $1.99 and $3.00 vs. $2.00 and $3.00) can shift choice share toward the lower‐ or higher‐priced alternative. We also find that changes between just‐below (e.g., $29.99 and $39.99) and round (e.g., $30.00 and $40.00) pricing affect choice, with just‐below pricing shifting share toward lower‐priced alternatives. The latter effects are found to be moderated by price level and shopping goals. A three‐path mediation model reveals the processes underlying the influence of price endings on choice.
© 2009 by JOURNAL OF CONSUMER RESEARCH, Inc.