Are odd prices against all odds in a luxury context?

Annalisa Fraccaro, Sandrine Macé and Béatrice Parguel ()
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Annalisa Fraccaro: ESCP-EAP - ESCP-EAP - Ecole Supérieure de Commerce de Paris
Béatrice Parguel: DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique

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Abstract: This article interrogates the existence of odd prices (i.e. prices just below a round number) in aluxury context, where they should theoretically not exist. Specifically, it investigates oddpricing in a luxury context using three empirical studies. An exploratory first observes thatodd prices are massively used in the luxury women handbags category. Drawing on the oddending price justification effect, a quantitative Study then explains this practice by luxurybrand managers' beliefs in the drop-off and the meaning mechanisms by which odd priceshave been shown to influence consumers in the FMCG industry. Running counter to literaturewhich assumes that odd pricing is not appropriate in a luxury context, these findings providenoteworthy theoretical insights and interesting managerial implications for luxury brandmanagers involved in price setting.

Keywords: Odd pricing; Luxury industry; Managerial beliefs (search for similar items in EconPapers)
Date: 2019-12
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Published in ANZMAC Conference, Dec 2019, Wellington, New Zealand

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03990642

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