 The Impact and Determinants of Nine-Ending Pricing in Grocery RetailingSandrine Macé Journal of Retailing, 2012, vol. 88, issue 1, 115-130 Abstract: Research into nine-ending pricing indicates a clear effect on sales but strong variance, suggesting that their effects are context dependent. This research relates nine-ending effects to a broad set of determinants and investigates the influence of brand, category, store, and store area clientele characteristics. The numerous empirically supported hypotheses indicate that the framework built on level and image effects is well adapted for explaining the effectiveness of nine-endings. They validate that a wide and indiscriminate practice of nine-ending pricing is not effective. The findings show that the impact of nine-endings can lead to sales losses (e.g., premium brands); however, a nine-ending price is more effective for increasing sales of small brands (e.g., low market-share, low price, and new items) that belong to weaker categories (e.g., low price, low budget-share). The effect erodes as the store's nine-ending pricing practices intensify. For category sales, a simulation reveals the existence of a threshold for which overuse is counterproductive. Keywords: Nine-ending price; Price endings; Cross-sectional research (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jouret:v:88:y:2012:i:1:p:115-130 DOI: 10.1016/j.jretai.2011.07.002 Access Statistics for this article Journal of Retailing is currently edited by A. Roggeveen More articles in Journal of Retailing from Elsevier |
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