Culture-Specific Number Symbolism in Restaurant Prices

Wagner, Udo; Jamsawang, Jutatip

doi:10.1080/1226508x.2014.884049

Cited by 4 publications

(5 citation statements)

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“…The cultural theories of price clustering (Brown et al , 2002; Cai et al , 2007; Wagner and Jamsawang, 2014) posit that the digit seven has a particular symbolism in Islamic contexts. Therefore, one should expect to observe prices ending in that digit more often than would occur if prices followed a uniform distribution.…”

Section: Resultsmentioning

confidence: 99%

“…Likewise, it is to be expected that digit four, as it is not appreciated in the context of the Chinese culture, will be less frequent in prices. Wagner and Jamsawang (2014) contend that the digit seven has a prominent place in Islamic culture. It is considered to be a sacred number, playing an important religious role.…”

Section: Price Clusteringmentioning

confidence: 99%

“…It is considered to be a sacred number, playing an important religious role. For example, the pilgrims to Mecca must proclaim Allahu Akbar (“God is greater”) and the creed seven times; the Koran describes seven heavens, seven earths and seven oceans; and, during prayer, seven parts of the body must touch the ground (Schimmel, 1993; Wagner and Jamsawang, 2014). Consistent with their predictions, Wagner and Jamsawang (2014) find that number seven is more common in restaurant prices in Islamic settings.…”

Section: Literature Reviewmentioning

confidence: 99%

“…However, the empirical literature suggests that price clustering is pervasive in stock markets (Aitken et al , 1996; Ikenberry and Weston, 2008; Narayan et al , 2011). In many circumstances, investors prefer to trade at round prices to minimize cognitive and/or economic costs (Ball et al , 1985; Goodhart and Curcio, 1991; Harris, 1991; Mitchell, 2001) and also exhibit a tendency to prefer prices ending in digits that have an especially positive symbolism in the context of their culture (Brown et al , 2002; Cai et al , 2007; Wagner and Jamsawang, 2014). Price clustering contributes to increase the predictability of stock prices and can be used to conceive profitable trading strategies (Niederhoffer, 1965; Bhattacharya et al , 2012; Blau et al , 2020).…”

Section: Introductionmentioning

confidence: 99%

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Efficiency and price clustering in Islamic stocks: evidence from three Asian countries

Lobão

2023

JIABR

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Purpose This paper aims to examine the extent of price clustering in a selection of Islamic stocks listed in Indonesia, Malaysia and Pakistan and also investigates the determinants of the phenomenon at the firm level. Design/methodology/approach The author test the uniformity of price distribution in the selected securities. Then, the determinants of price clustering were investigated through multivariate analysis based on a binary logistic regression model. Following the arguments of Narayan et al. (2011), who emphasize the importance of considering firm heterogeneity when studying the phenomenon, the author conducts the empirical study at the firm level. Findings The evidence indicates that Islamic stocks show a mild level of price clustering. Only half of the stocks under analysis rejected the uniformity test in the distribution of prices. In these cases, investors exhibited a preference for prices ending at zero and five. The evidence does not confirm the cultural clustering theories. Price clustering is found to be positively associated with price level and relative bid-ask spread. Overall, the negotiation hypothesis, which predicts that investors prefer round prices to minimize the costs associated with negotiations, best explains most of our results. Research limitations/implications The existence of price clustering is difficult to reconcile with the prediction of the efficient market hypothesis that prices should follow a random walk. Moreover, the evidence indicates that Muslim investors share a preference for round prices in some settings, under the assumption that Islamic stocks are mostly traded by Muslim investors. Originality/value To the author’s best knowledge, this is the first study to address the subject of price clustering in Islamic stocks.

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Section: Resultsmentioning

confidence: 99%

Section: Price Clusteringmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Efficiency and price clustering in Islamic stocks: evidence from three Asian countries

Lobão

2023

JIABR

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“…Gerçekten de yapılan araştırmaların birçoğu bu varsayımı destekler niteliktedir Kalyanam & Thomas, 1998;Estelami, 1999;Anderson & Simester;. Bununla birlikte bu durumun ülkeden ülkeye değiştiğini gösteren araştırmalar olduğu gibi, söz konusu varsayımın tam aksini gösteren araştırmalar da bulunmaktadır (Schinler & Kibarian, 1996;Bray ve Harris, 2006;Marsula, 2006;Mace, 2012;Wagner & Jamsawang, 2014).…”

Section: Introductionunclassified

Perakendecilik Sektöründe Dokuz Sonlu Fiyatlandırma: Tüketicilerin Bakış Açısıyla, Anlamlı Bir İndirim mi Yoksa Aldatmaca mı?

Akyıldız

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KILIÇ>

2018

Girişimcilik İnovasyon Ve Pazarlama Araştırmaları Dergisi

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Küsuratlı fiyatlandırma politikaları 20.yy. başlarından itibaren dünyanın pek çok ülkesindeki perakendeciler tarafından uygulanmaktadır. Bu fiyatlandırma politikasının altında yatan temel varsayım tüketicilerin algısını değiştirerek satışları artırma düşüncesidir. Dokuz sonlu fiyatlandırma küsuratlı fiyatlandırmanın uç uygulamalarından biridir. Bu araştırmanın amacı, etkilerinin ülkeden ülkeye farklılık gösterdiği ve sonuçları itibarıyla tartışmalı olan dokuz sonlu fiyatlandırma politikalarının Türkiye'de yaşayan tüketiciler üzerinde nasıl bir etki yarattığını ve tüketicilerin tutumlarının ne olduğunu belirlemektir. Bu amaçla anket yöntemiyle 792 kişiden toplanan veriler ki kare ve Kruskal Wallis testleriyle analiz edilmiştir. Sonuçlar, fiyatların dokuz sonlu veya yuvarlak olmasının tüketicilerin satın alma tercihlerini değiştirmediğini ve dokuz sonlu fiyatlara karşı olumsuz tutuma sahip olduklarını göstermektedir.

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