Publication: Consumer Preferences for 99-ending prices: the mediating role of price consciousness
Loading...
Identifiers
Publication date
2011-04
Defense date
Authors
Advisors
Tutors
Journal Title
Journal ISSN
Volume Title
Publisher
Impact
Export
Abstract
This research addresses the persuasive effect of 99-ending prices and carries out a choice-based
conjoint analysis among 318 shoppers. We propose that 99-ending prone consumers engage in a heuristic
process either consciously — they consider a 99-ending as a signal for a “good deal”— or unconsciously —
they round down 99-ending prices. This conceptual framework leads to non-intuitive and completely new
sets of hypotheses in the examination of the drivers, mediator and moderators of 99-ending preferences.
Results indicate that consumers who are more price conscious are more likely to choose 99-ending prices.
Indeed, low involved shoppers (especially those with a low hedonic and symbolic involvement profile), low
educated, low income and younger shoppers are prone to choose the 99-ending option. We also
demonstrate that the magnitude of this 99-ending effect depends on the price level of the product
category and the positioning of the brands. The theoretical contributions to the manner in which
consumers process 99-endings has implications for retailers, pricing managers and social welfare
Description
Keywords
99-ending prices, Price information processing, Conjoint analysis