Are 1-endings the new 9-endings? An alternative for generating price discount perceptions

Döğerlioğlu Demir, Kıvılcım and Akpınar, Ezgi and Gurhan-Canli, Zeynep and Koçaş, Cenk (2022) Are 1-endings the new 9-endings? An alternative for generating price discount perceptions. Journal of Retailing and Consumer Services, 66 . ISSN 0969-6989 (Print) 1873-1384 (Online)

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Abstract

Although extant literature confirms the efficacy of 9-endings, how consumers perceive multi-digit prices with repeating identical ending digits such as $1999 is less clear. Research indicates that consumers tend to truncate 9-ending prices and associate them with discounts. Five experiments demonstrate, however, that consumers are likely to perceive multi-digit prices with 1-endings (e.g., $2111) as being more on a discount than prices with 9-endings (e.g., $1999). Moreover, a year-long field study shows that 1-ending (vs. 9-ending) prices receive more click-through rates when presented in online ads. These novel findings inform retailers on how they can generate higher discount perceptions by using 1-endings rather than 9-endings in multi-digit prices.
Item Type: Article
Uncontrolled Keywords: 9-Ending prices; Digit-chunking; Discounts; Left-digit bias; Multi-digit prices
Divisions: Sabancı Business School
Depositing User: Kıvılcım Döğerlioğlu Demir
Date Deposited: 26 Aug 2022 11:12
Last Modified: 26 Aug 2022 11:12
URI: https://research.sabanciuniv.edu/id/eprint/43943

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