Influence of price endings on price recall: a by-digit analysis

Authors: Schindler, Robert M.; Chandrashekaran, Rajesh

Source: Journal of Product and Brand Management, Volume 13, Number 7, 2004 , pp. 514-524(11)

Publisher: Emerald Group Publishing Limited

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Abstract:

Although it has been proposed that recall processes play a role in the retail sales effects of 9-ending pricing, substantial effects of price endings on the level of recalled prices has not been demonstrated. With an improved testing procedure, it is found that the level of a set of prices with low ending digits (such as 1 or 2 in the dollars place) is more likely to be overestimated in recall than the level of equivalent sets of prices with high ending digits (such as 6, 7, or 9 in the dollars place). The results of the study support the role of left-to-right processing of price information and point out some consequences for retailers of the use of low numbers in price-ending digits.

Keywords: Cognition; Consumer behaviour; Image processing; Marketing strategy; Prices; Promotional methods

Document Type: Research article

DOI: http://dx.doi.org/10.1108/10610420410568453

Publication date: 2004-12-01