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Product Category Pricing and Future Price Attractiveness: 99-Ending Pricing in a Memory-Based Context

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  • Carver, James R.
  • Padgett, Daniel T.

Abstract

Two experiments were used to examine the impact of 99-ending pricing on memory-based comparisons with a multiple product set. Results indicate that when a target is priced above/below a stimulus set, use of 99-ending prices for the highest and lowest prices in the stimulus set lessens target price attractiveness compared to when the highest and lowest prices are 00-ending. Attractiveness of targets priced within the stimulus set was not impacted by the use of 99- versus 00-ending pricing. Overall, participants appear to use an assimilation/contrast approach based upon left-digit processing in determining target price attractiveness.

Suggested Citation

  • Carver, James R. & Padgett, Daniel T., 2012. "Product Category Pricing and Future Price Attractiveness: 99-Ending Pricing in a Memory-Based Context," Journal of Retailing, Elsevier, vol. 88(4), pages 497-511.
    • Handle: RePEc:eee:jouret:v:88:y:2012:i:4:p:497-511
    DOI: 10.1016/j.jretai.2012.05.001
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    3. Snir, Avichai & Levy, Daniel, 2021. "If You Think 9-Ending Prices Are Low, Think Again," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 6(1 (Forthc).
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    5. Gunasti, Kunter & Ozcan, Timucin & Howlett, Elizabeth, 2023. "The crucial role of reference numbers on consumers’ product preferences," Journal of Business Research, Elsevier, vol. 168(C).

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