Patterns of Rightmost Digits Used in Advertised Prices: Implications for Nine‐Ending Effects

Schindler, Robert M.; Kirby, Patrick N.

doi:10.1086/209504

Cited by 255 publications

(267 citation statements)

References 7 publications

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“…The coefficient of 0-ending is negative and significant, consistent with the argument that 0-ending numbers are cognitively more accessible (Dehaene 1997), and thus they are recalled better than non 0-ending prices (Schindler and Kirby 1997). The coefficient of 90-endings is also negative, and its absolute value exceeds the absolute value of the coefficient of other 0-endings 2 ( 2.77, 0.1) p χ = < .…”

Section: Before the Regulation Went Into Effect: October 2013-decembesupporting

confidence: 75%

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End of 9-endings, price recall, and price perceptions

2017

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ABSTRACT:Prices that end with 9, also known as psychological price points, are common, comprising about 70% of the retail prices. They are also more rigid than other prices. We take advantage of a natural experiment to document an emergence of a new price ending that has the same effects as 9-endings. In January 2014, the Israeli government passed a new regulation prohibiting the use of non 0-ending prices, bringing an end to 9-ending prices. We find that seven months after 9-ending prices have disappeared, 90-ending prices acquired the same status as 9-ending prices had before the new regulation was adopted. Thus, 90-ending prices became the new psychological price points, partially eliminating the regulation's intended effect. JEL Classification:E31, L16, K20, D40, D83, L81, M21, M31 Keywords: 9-ending prices; psychological price points; price recall/perception; sticky/rigid prices; level/left-digit effect; image/right-digit effect; integer constraint; price control; price regulation ✩ We thank two anonymous reviewers for thoughtful comments, which helped us improve the data analyses and better position the paper in the context of the existing literature, and Doron Sayag for his help with the data. All authors contributed equally: we rotate co-authorship. Any remaining errors are ours.

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Section: Before the Regulation Went Into Effect: October 2013-decembesupporting

confidence: 75%

“…1 Two leading explanations for this effect are level-effect and image-effect. 2 According to the level-effect, consumers have bounded rationality and, therefore, they round prices down or process price information L-to-R, and sometimes ignore the rightmost digit (Schindler and Kirby 1997, Stiving and Winer 1997, Thomas and Morwitz 2005.…”

Section: Introductionmentioning

confidence: 99%

End of 9-endings, price recall, and price perceptions

2017

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“…However, psychological prices, as a price setting strategy, and their impact on consumer purchase decisions have been widely discussed in numerous surveys [Schindler and Kirby 1997;Schindler and Kibarian 1996;Stiving and Winer 1997]. Herrmann, Moeser and Weber (2005) reveal a significant effect of psychological pricing points in the pricing strategies of German retailers and thus on the degree of price rigidity.…”

Section: Consumer Price Rigiditymentioning

confidence: 99%

Price rigidity and market power in German retailing

Weber

Anders

2007

Manage Decis Econ

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This paper presents empirical evidence on the interplay important topics of consumer price rigidity and market power in the German food retail industry. In particular, the analysis addresses the causal relationship between market structure-collusion-and pricing behaviour highlighted in the industrial organization literature. Extensive analysis of retail scanner data across beef and pork products reveals considerable differences in price rigidity across store types. Supermarket pricing behaviour is evaluated with respect to all price changes retail sales action and price adjustments indicating that food discounters exhibit the highest degree of rigid prices. Retail concentration, as an important explanatory factor of price stickiness is investigated via the analysis of retail market power employing a conjectural-variation approach. The analysis of market conduct in the marketing of beef and pork products indicates simultaneous oligopolistic and oligopsonistic behaviour of retail firms. Copyright © 2007 John Wiley & Sons, Ltd.

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“…Örneğin; 2,99 TL tutarındaki fiyat .99'la ya da 5,50 TL fiyat .50 ile sonlandırılmıştır. Fiyat sonlarında kullanılan rakamlar perakendeciler açısından önemlidir çünkü perakendeciler fiyat sonu yazımlarında "9, 0 ve 5" gibi rakamları kullanarak, tüketicilerin fiyat algılamalarını etkilemeye çalışmaktadır (Rudolph 1954;Twedth 1965;Friedman 1967;Kreul 1982;Schindler ve Kirby 1997;Naipaul ve Parsa 2001;Parsa ve Hu 2004;Bizer ve Schindler 2005). Fiyatların sağ tarafındaki küsuratı gösteren ve fiyat sonu olarak da adlandırılan bölümünde '5, 7, 9' gibi rakamların kullanılması kalanlı fiyat uygulaması olarak adlandırılırken; küsuratın yuvarlanarak '0' rakamının kullanılması ise yuvarlama fiyat uygulaması olarak ifade edilebilir.…”

Section: Kalanlı Ve Yuvarlama Fiyat Stratejileri Ve Uygulamalarıunclassified

Psikolojik Fiyatlama Stratejisi Olarak Restoranlarda Kalanlı ve Yuvarlama Fiyat Uygulamalarıyla İlgili Yabancı Turist Algılamaları

Biçici¹

2014

Ege Stratejik Araştırmalar Dergisi

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Patterns of Rightmost Digits Used in Advertised Prices: Implications for Nine‐Ending Effects

Cited by 255 publications

References 7 publications

End of 9-endings, price recall, and price perceptions

End of 9-endings, price recall, and price perceptions

Price rigidity and market power in German retailing

Psikolojik Fiyatlama Stratejisi Olarak Restoranlarda Kalanlı ve Yuvarlama Fiyat Uygulamalarıyla İlgili Yabancı Turist Algılamaları

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