Several Aspects of Psychological Pricing: Empirical Evidence from some Austrian Retailers

Wagner, Udo; Jamsawang, Jutatip

doi:10.1007/978-3-8349-7144-9_1

Cited by 5 publications

(3 citation statements)

References 32 publications

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“…First, Study II considers only two experimental conditions. Second, with mean article prices exceeding C100, risk-involving promotions in furniture stores are high-stakes gambles (Wagner and Jamsawang 2012). The high-stakes situation is a distinguishing feature of Study II because most research on risky and uncertain discounts has dealt with hypothetical scenarios or very low pay-off situations (e.g., possible gains averaged <C5).…”

Section: Study Ii: Price Promotion Using Dicementioning

confidence: 99%

Playing When Paying and What Happens Next: Customer Satisfaction and Word-of-Mouth Intention in Gambled Price Promotions

Akbari

Wagner

2021

Schmalenbach J Bus Res

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Gambled price promotions, i.e., discounts in which the customers’ savings depend on the outcome of a game, have recently gained increasing attention from research and practice. This type of promotion is often framed as an in-store event, and consumers experience two properties inherent in gambling: entertainment and varied financial payoffs. Depending on the consumers’ assessments of these two elements, these experiences might drive two postpurchase consequences of such campaigns: customer satisfaction with the retailer and word-of-mouth intention. To assess these effects, two field quasi-experiments with gambled price promotions were conducted: one in a candy store and the other in a retail furniture store. Two main findings emerge from these studies: (1) The customers in both studies endorse gambled price promotions and are more willing to engage in word-of-mouth when participating in such a campaign. The effect of gambled price promotions on customer satisfaction is positive in the low-stakes setting of the candy store but insignificant in the furniture store. (2) The positive effects of such promotions are mediated by their entertainment value and moderated by the consumers’ assessments of the discount. The implication of these results is that, in addition to the already known revenue-increasing prepurchase effects, gambled price promotions can also result in positive postpurchase effects and should represent a valuable addition to the seller’s promotion toolbox.

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Section: Study Ii: Price Promotion Using Dicementioning

confidence: 99%

Playing When Paying and What Happens Next: Customer Satisfaction and Word-of-Mouth Intention in Gambled Price Promotions

Akbari

Wagner

2021

Schmalenbach J Bus Res

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“…Seminal paper in this field was published by El Sehity et al (2005) which analyses consumer price digits before and after the euro introduction. Another piece of empirical evidence on psychological pricing was related to Austrian retailers, Wagner and Jamsawang (2012). Zhang (2020) proposed a test for checking the reported number of COVID-19 cases in China using the Newcomb-Benford Law.…”

Section: Literature Reviewmentioning

confidence: 99%

Assessing the Quality of Covid-19 Data: Evidence From Newcomb-Benford Law

Jošić

Žmuk

2021

FU Econ Org

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The COVID-19 infection started in Wuhan, China, spreading all over the world, creating global healthcare and economic crisis. Countries all over the world are fighting hard against this pandemic; however, there are doubts on the reported number of cases. In this paper Newcomb-Benford Law is used for the detection of possible false number of reported COVID-19 cases. The analysis, when all countries have been observed together, showed that there is a doubt that countries potentially falsify their data of new COVID-19 cases of infection intentionally. When the analysis was lowered on the individual country level, it was shown that most countries do not diminish their numbers of new COVID-19 cases deliberately. It was found that distributions of COVID-19 data for 15% to 19% of countries for the first digit analysis and 30% to 39% of countries for the last digit analysis do not conform with the Newcomb-Benford Law distribution. Further investigation should be made in this field in order to validate the results of this research. The results obtained from this paper can be important for economic and health policy makers in order to guide COVID-19 surveillance and implement public health policy measures.

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“…The second category "psychological prices exist" may partially be supported by the fact the last digit of retail prices is known to not be uniformly distributed across industries (Hackl et al, 2014;Lewis, 2015;Wagner and Jamsawang, 2012). However, this is not sufficient to claim psychological prices exist as prices ending in a specific digit must be lower than prices ending in other digits.…”

Section: Related Workmentioning

confidence: 99%

Psychological prices at retail gasoline stations: the policies of 0-, 5-, and 9-ending prices

2021

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Psychological prices are known to impact consumer behavior and to depend on retailers' characteristics. Less understood is last digit pricing, especially in the context of retail gasoline stations. We study price endings in the French gasoline market with 11,471 gas stations and 4,775,300 prices for oil companies, supermarkets, and independent retailers during five years. Raw data suggest that 0-ending prices are more expensive. Yet, these last digit effects do not survive careful scrutiny focusing on the individual behavior/distribution of each gas station. Plus, 9-, 0-, and 5-ending prices are over-represented. Our evidence better informs administrative authorities investigating market irregularities and consumers interested in better deals.

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Several Aspects of Psychological Pricing: Empirical Evidence from some Austrian Retailers

Cited by 5 publications

References 32 publications

Playing When Paying and What Happens Next: Customer Satisfaction and Word-of-Mouth Intention in Gambled Price Promotions

Playing When Paying and What Happens Next: Customer Satisfaction and Word-of-Mouth Intention in Gambled Price Promotions

Assessing the Quality of Covid-19 Data: Evidence From Newcomb-Benford Law

Psychological prices at retail gasoline stations: the policies of 0-, 5-, and 9-ending prices

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