Do nine-ending prices really work?
Will £9.99 sell more than £10.00? Can it be used for high-quality products? What about hedonic products? Can it be used on speed limits?
For years this debate has raged on. But today on Nudge, I speak with pricing expert Dr Markus Husemann-Kopetzky to settle the argument.
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Today’s sources:
Gendall, P. (1998). Estimating the effect of odd pricing. Journal of Product & Brand Management, 7(5), 421–432.
Husemann-Kopetzky, M. (2018). Handbook on the psychology of pricing: 100+ effects on persuasion and influence every entrepreneur, marketer and pricing manager needs to know. Independently published.
ITN Archive. (2022, November 28). “I will not accept that it’s a highly dangerous road” (1988) [Video]. YouTube.
Kim, J., Novemsky, N., & Dhar, R. (2013). Adding small differences can increase similarity and choice. Psychological Science, 24(2), 176–182.
Nunes, J. C., & Park, C. W. (2003). Incommensurate resources: Not just more of the same. Journal of Marketing Research, 40(1), 26–38.
Rubinstein, A., & Yee, V. (2020). The left-digit bias: When and why are consumers penny wise and pound foolish? Journal of Marketing Research, 57(3), 467–485.
Schindler, R. M., & Kibarian, T. M. (1996). Increased consumer sales response through use of 99-ending prices. Journal of Retailing, 72(2), 187–199.
Shotton, R. (2018). The choice factory: 25 behavioural biases that influence what we buy. Harriman House.
Suwelack, T., Hogreve, J., & Hoyer, W. D. (2011). Understanding money-back guarantees: Cognitive, affective, and behavioral effects. Journal of Retailing, 87(4), 462–478.
Wadhwa, M., & Zhang, K. (2015). This number just feels right: The impact of roundedness of price numbers on product evaluations. Journal of Consumer Research, 41
