Are 1-endings the new 9-endings? An alternative for generating price discount perceptions
Zeynep Gurhan-Canli and
Journal of Retailing and Consumer Services, 2022, vol. 66, issue C
Although extant literature confirms the efficacy of 9-endings, how consumers perceive multi-digit prices with repeating identical ending digits such as $1999 is less clear. Research indicates that consumers tend to truncate 9-ending prices and associate them with discounts. Five experiments demonstrate, however, that consumers are likely to perceive multi-digit prices with 1-endings (e.g., $2111) as being more on a discount than prices with 9-endings (e.g., $1999). Moreover, a year-long field study shows that 1-ending (vs. 9-ending) prices receive more click-through rates when presented in online ads. These novel findings inform retailers on how they can generate higher discount perceptions by using 1-endings rather than 9-endings in multi-digit prices.
Keywords: 9-Ending prices; Discounts; Multi-digit prices; Digit-chunking; Left-digit bias (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:66:y:2022:i:c:s0969698922000054
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