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If You Think 9-Ending Prices Are Low, Think Again
| Content Provider | Semantic Scholar |
|---|---|
| Author | Snir, Avichai Levy, Daniel N. |
| Copyright Year | 2019 |
| Abstract | 9-ending prices are a dominant feature of many retail settings, which according to the existing literature, is because consumers perceive them as being relatively low. Are 9-ending prices really lower than comparable non 9-ending prices? Surprisingly, the empirical evidence on this question is scarce. We use 8 years of weekly scanner price data with over 98 million price observations to document four findings. First, at the category level, 9-ending prices are usually higher, on average, than non 9-ending prices. Second, at the product level, in most cases, 9-ending prices are, on average, higher than prices with other endings. Third, sale prices are more likely to be non-9 ending than the corresponding regular prices. Fourth, among sale prices, 9-ending prices are often lower, on average, than comparable non 9-ending prices. The first three findings imply that although consumers may associate 9-ending prices with low prices, the data indicates otherwise. The fourth finding offers a possible explanation for this misperception. Retailers may be using 9-ending prices to draw consumers’ attention to particularly large price cuts during sales, which perhaps conditions the shoppers to associate 9-ending prices with low prices. |
| File Format | PDF HTM / HTML |
| DOI | 10.2139/ssrn.3403839 |
| Alternate Webpage(s) | http://iset.ge/files/wp_06-19_If%20You%20Think%209-Ending%20Prices%20Are%20Low,%20Think%20Again.pdf |
| Alternate Webpage(s) | https://mpra.ub.uni-muenchen.de/94469/1/MPRA_paper_94469.pdf |
| Alternate Webpage(s) | https://www.econstor.eu/bitstream/10419/202541/1/1668108658.pdf |
| Alternate Webpage(s) | https://mpra.ub.uni-muenchen.de/96614/1/MPRA_paper_96614.pdf |
| Alternate Webpage(s) | https://www.econstor.eu/bitstream/10419/204666/1/Complete%20Manuscript%20-%20Snir%20and%20Levy%20-%20JACR.pdf |
| Alternate Webpage(s) | http://rcea.org/RePEc/pdf/wp19-14.pdf |
| Alternate Webpage(s) | https://econ.biu.ac.il/files/economics/working-papers/2019-06_1.pdf |
| Alternate Webpage(s) | https://doi.org/10.2139/ssrn.3403839 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
