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The not-so-odd couple: Odd pricing in a luxury context

Annalisa Fraccaro, Sandrine Macé and Béatrice Parguel ()
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Béatrice Parguel: DRM - MLAB - Dauphine Recherches en Management - MLAB - DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique

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Abstract: Two large samples of prices indicate that odd prices (i.e., prices just below a round number, for example €1,495 vs. €1,500) are used in the pricing of luxury products. An analysis of price endings suggests that luxury brand managers rely less on the drop-off mechanism than on the meaning mechanism, both of which have been used to show that odd prices influence consumers in the Fast-Moving Consumer Goods (FMCG) industry. Building on the odd-ending price justification effect, a conjoint analysis, indicating that a large proportion of luxury consumers prefer odd prices, supports the likely role of a guilt-relief mechanism in the pricing of luxury products.

Keywords: Odd pricing; Luxury consumption; Justification effect; Conjoint analysis (search for similar items in EconPapers)
Date: 2021-11
New Economics Papers: this item is included in nep-ene and nep-ipr
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Published in Journal of Business Research, 2021, 136, pp.356-365. ⟨10.1016/j.jbusres.2021.07.048⟩

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DOI: 10.1016/j.jbusres.2021.07.048

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