Consistent price endings increase consumers perceptions of cheapness

Published on Jul 1, 2021in Journal of Retailing and Consumer Services
· DOI :10.1016/J.JRETCONSER.2021.102590
Hui-Hsi Hung , Yin-Hui Cheng3
Estimated H-index: 3
+ 2 AuthorsYu-Ting Lin
#1Yin-Hui Cheng (National Taichung University of Education)H-Index: 3
#2Shih-Chieh Chuang (CCU: National Chung Cheng University)H-Index: 2
Last. Wan-Ting Lai (CCU: National Chung Cheng University)H-Index: 1
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Abstract Having change in our wallet is quite common when we pay cash when shopping. This study examines the phenomenon whereby people choose to buy a product with a price that matches the amount of change they have in their wallets. The study uses a series of experiments to investigate whether this “change-matching heuristic” helps customers make purchase decisions. The findings confirm that the change-matching heuristic increases consumers’ processing fluency. The findings also confirm that th...
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This research examines whether spatial differences in presentation of comparative price promotions (vertical vs. horizontal) affect consumers' assessment of price discounts. Results show that when comparative price promotions are presented horizontally, consumers take longer to compute the monetary discount and are less accurate than when such prices are presented vertically. This suggests that cognitive constraints exhibit a larger detrimental effect on performing computations when prices are p...
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#1Huachao Gao (UVic: University of Victoria)H-Index: 4
#2Yinlong Zhang (UTSA: University of Texas at San Antonio)H-Index: 13
Last. Vikas Mittal (Rice University)H-Index: 57
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AbstractThe authors propose that when consumers’ local identity is accessible, they are less likely to be price sensitive because of a sacrifice mindset. Six studies using divergent measures of the independent and dependent variables as well as diverse samples (students and nonstudents, U.S. and Chinese residents, primary and secondary data) produce consistent results. Furthermore, the authors demonstrate the mediating role of a sacrifice mindset by both measuring and manipulating this construct...
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#1Duncan Simester (MIT: Massachusetts Institute of Technology)H-Index: 35
Abstract In the last 20 years the marketing literature has seen a sharp increase in the number of papers reporting findings from field experiments. This can be partly explained by the ease of conducting field experiments in Internet settings. However, we have also seen an increase in field experiments in physical stores and other non-Internet settings. While many of these papers focus on pricing and advertising topics, there are also a broad range of other topics represented, including several p...
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#1Jimmy Q. Li (MIT: Massachusetts Institute of Technology)H-Index: 1
#2Paat Rusmevichientong (SC: University of Southern California)H-Index: 23
Last. Spyros I. Zoumpoulis (Ad: INSEAD)H-Index: 7
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The feasibility of using field experiments to optimize marketing decisions remains relatively unstudied. We investigate category pricing decisions that require estimating a large matrix of cross-product demand elasticities and ask the following question: How many experiments are required as the number of products in the category grows? Our main result demonstrates that if the categories have a favorable structure, we can learn faster and reduce the number of experiments that are required: the nu...
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#1Christina Kan (CU: University of Colorado Boulder)H-Index: 2
Last. Chris Janiszewski (UF: University of Florida)H-Index: 40
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The use of advertised reference price promotions, such as "regularly 119.99, sale price 9.99," is ubiquitous in the marketplace. Thirty years of research supports the conclusion that advertised reference prices (e.g., 119.99) exert an influence on consumers' responses to offer prices (e.g., 9.99) via their assimilative influence on consumers' internal reference prices. The present research provides an enriched account of this assimilation process. Specifically, three studies show that incr...
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#1Keith S. Coulter (SPbU: Saint Petersburg State University)H-Index: 18
#2Anne L. Roggeveen (Babson College)H-Index: 26
This research investigates how the relationships among pieces of numerical information in a price promotional offer (i.e., regular price, sale price, absolute discount, and relative discount) affect deal processing fluency. Across four studies (including a field study involving purchase data collected from an online group-buying website), the authors show that when the numbers constitute an approximation sequence or are multiples of one another, deal processing fluency is increased, which influe...
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#1Abhijit Biswas (WSU: Wayne State University)H-Index: 38
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How exactly does the display location of a sale price relative to the original price affect consumers' evaluations? Across multiple studies, including field studies with actual choices and studies with nonstudent samples, this article shows that consumer evaluations are a function of the display location of the sale price, but such evaluations are moderated by discount depth. First, presenting the smaller number to the right (vs. left) makes it easier to initiate the subtraction task, a phenomen...
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#1Andrew F. Hayes (OSU: Ohio State University)H-Index: 56
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Adding It Up explores how students in pre-K through 8th grade learn mathematics and recommends how teaching, curricula, and teacher education should change to improve mathematics learning during these critical years. The committee identifies five interdependent components of mathematical proficiency and describes how students develop this proficiency. With examples and illustrations, the book presents a portrait of mathematics learning: * Research findings on what children know about numbers by ...
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