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Research on odd prices
... Hence, one could assume that it is easier for the consumer to transcript €19 as inexpensive compared to the price of €18.99 (for rail prices in Germany price endings with .99 are rather uncommon). The weak evaluation of the €18.99 priced train ticket compared to the base offer of €19 might also be explained due to a different quality perception (Balan, 2013). Overall, the results for prices with 9-endings are confirmed by other studies that suggest that consumers favor round numbers when paying for goods and services (Lynn, Flynn, & Helion, 2013) and adopting round-pound prices may be more effective (Bray & Harris, 2006). ...
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.Keywords: VUCA, Price strategy, Behavioral pricing, Experimental testing, Online survey
... Hence, one could assume that it is easier for the consumers to transcript €19 as inexpensive compared to the price of €18.99 (for rail prices in Germany price endings with 99 are rather uncommon). The weak evaluation of the €18.99 priced train ticket compared to the base offer of €19 might also be explained due to a different quality perception (Balan, 2013). Coulter, Choi, & Monroe (2012) demonstrate that including commas (e.g. ...
While the large number of publications on behavioral pricing and partly spectacular results suggest that it is easily possible to influence parameters in the consumers ́ price perception (for example, by providing price anchors as competitive prices, 99-price endings, information on a relative or absolute saving or information on availability of the prices by the suppliers), this empirical study based on experimental designs comes to a contrary conclusion: it turns out that the assessment of perceived value for money and cheapness for different sales promotion campaigns in Germany (train ticket, smartphone flat rate, filter coffee) is amazingly robust and that psychological factors tested in different experiments have a relatively low impact. The theoretical, practical and research implications of these findings are discussed.
Although the use of 9 price endings is widespread amongst US retailers there is little evidence of their effectiveness. In this paper, we present a series of three field-studies in which price endings were experimentally manipulated. The data yield two conclusions. First, use of a9 price endings is widespread amongst US retailers there is little evidence of their effectiveness. In this paper, we present a series of three field-studies in which price endings were experimentally manipulated. The data yield two conclusions. First, use of a 9 price ending increased demand in all three experiments. Second, the increase in demand was stronger for new items than for items that the retailer had sold in previous years. There is also some evidence that 9 price endings are less effective when retailers use < img src="/content/G27943713N352N8W/xxlarge8220.gif" alt="ldquo" align="MIDDLE" border="0Sale < img src="/content/G27943713N352N8W/xxlarge8221.gif" alt="rdquo" align="MIDDLE" border="0 cues. Together, these results suggest that9 price endings are less effective when retailers use Sale cues. Together, these results suggest that 9-endings may be more effective when customers have limited information, which may in turn help to explain why retailers do not use $9 price endings on every item.