Robustness of Price Perception: How Strong are Anchoring, Left-Digit- and Framing-Effects when Promoting Sales Offers?

Krämer, Andreas

doi:10.11114/bms.v2i1.1137

Cited by 5 publications

(2 citation statements)

References 17 publications

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“…Those who frequently use trains (63% agreement vs. 10% disagreement) and those who used intercity busses in the last 12 months (57% agreement vs. 4% disagreement), provide an above-average rating. Consequently, it is easier for Deutsche Bahn to address existing customers compared with non-users (Krämer, 2016). Also the low price is obviously an argument for bus users to travel (again) by train.…”

Section: Resultsmentioning

confidence: 99%

Using Experimental Survey Designs to Support Pricing Decisions

Krämer¹

2016

BMH

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Due to a changing marketing environment (more volatile, uncertain, complex and ambiguous framework, digitization) and the lack of a consistent pricing approach (challenge to harmonize neoclassical and behavioral elements), managers are increasingly questioning established ways to determine price levels and display price structures. Experimental testing represents a possibility to provide a decision support to pricing managers in the short run. The article presents three different projects, which quantitatively examine key elements of behavioral pricing: (1) the "Center-stage Effect" (electricity contract), (2) the impact of context on price perception (promotional campaigns for train tickets) and (3) offering of price guarantees as a means for improving the overall image as well as customer loyalty of the supplier (gas station). The results are partly unexpected as they contradict often-cited rules of thumb in behavioral pricing. Hence, it can be shown that experimental testing based on online surveys is a valuable and cost-efficient method to optimize price structures, price levels as well as price communication.

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Section: Resultsmentioning

confidence: 99%

Using Experimental Survey Designs to Support Pricing Decisions

Krämer¹

2016

BMH

Self Cite

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“…Price competition phenomena has intensified in many industrial context across the globe (Simon, 2013), and this is visible in the soft drink industry in Uganda. Though motivation for pursuing such price-based competition varies from firm to firm, literature tends to site intentions for market dominance as the most overriding (Krämer, 2016).…”

Section: Introductionmentioning

confidence: 99%

Price Wars and Sales Performance at Century Bottling Company Ltd, Mbarara, Uganda

Asiimwe¹,

Nomugisha²,

Kyabarongo³

et al. 2022

IJBS

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Purpose: Even when price war has seen massive interest among scholars, it is still unclear how it affects sales performance. This study examined the relationship between price war and sales performance among carbonated drink manufacturers in Uganda: a case of Century Bottling Company Limited. Methodology: Mixed methods design was used in this study. The population comprised of 210 employee managers and outlet managers. With the aid of Krejie and Morgan (1970)’s table, a sample size of 169 respondents was selected. Questionnaire was used to collect primary data in line with the positivism design and obtained a response rate of 55.0%. Pilot testing however preceded the final survey and we were able to check the relevancy of the instruments which was confirmed through the validity and reliability statistics that we achieved. Zero-order Pearson correlation was used to test the hypotheses. Findings: The study results showed a strong positive and significant relationship between promotional pricing and sales performance (r = .522, p= 0.000). Also Penetration pricing was found to have a moderate positive and significant association with sales performance(r = .369, p= 0.000). Last but not least, the study confirmed existence of a strong positive and significant relationship between Oligopoly pricing and sales performance at Century Bottling Company Limited (r = .573, p= 0.000). Recommendations: The study recommends that century bottling company limited consider the actual situations of different manufacturers when implementing its promotional strategies in order not to suffocate them, increase the number of sales outlets to ensure increased trades and selling, since it enables the company to access many customers and also to revisit its pricing strategy where customers like low-priced commodities and offer customer discount features according to different selling contexts.

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A meta‐analysis on the effects of just‐below versus round prices

et al. 2023

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Marketers' proclivity for just‐below prices (e.g., $9.99) is rooted in an expected higher demand than for round prices ($10.00). The literature, however, lacks a comprehensive assessment of when and how price endings matter. Three mechanisms might explain price‐ending effects on consumers' purchase decisions: just‐below prices (1) improve price perceptions, but (2) impair perceived product quality, and (3) cause consumers to underestimate prices. A preregistered meta‐analysis (k = 69 studies, m = 362 effect sizes, N = 40,541) established that just‐below (vs. round) prices tend to increase purchase decisions (g = 0.13, CI95%[0.01, 0.25]), result in an advantageous price image (g = 0.28, CI95%[0.09, 0.48]), have no effect on perceived product quality (g = 0.00, CI95%[−0.17, 0.18], p = 0.96), and are more often underestimated (g = 0.67, CI95%[0.04, 1.30]). Participant, study, price, and product characteristics moderate the magnitude of these effects. Overall, the effect sizes are small and highly heterogenous, p‐curve analyses revealed a large proportion of nonsignificant effects, and publication bias corrections suggest smaller and, at times, nonsignificant true effects. We discuss theoretical and applied implications for the pricing literature.

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Robustness of Price Perception: How Strong are Anchoring, Left-Digit- and Framing-Effects when Promoting Sales Offers?

Cited by 5 publications

References 17 publications

Using Experimental Survey Designs to Support Pricing Decisions

Using Experimental Survey Designs to Support Pricing Decisions

Price Wars and Sales Performance at Century Bottling Company Ltd, Mbarara, Uganda

A meta‐analysis on the effects of just‐below versus round prices

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