An Empirical Analysis of Price Endings with Scanner Data

자료: http://pages.stern.nyu.edu/~rwiner/Paper%20with%20Mark%20Stiving.pdf

By Merk Stiving. Russell S. Winer

※ 메모: .... In an effort to explain the frequent use of prices that end in 199, academics have frequently proposed that consumers round prices down, essentially ignoring the right-hand digits. Other potential explanatins are that consemers compare prices from left to right. This article explores these possible price-ending effects through a unique approach of using scanner data to model consumers' behavior towards price endings. The results of the models estimated in this article demonstrate that the price-ending effects exhibited by consumers can be significant, and they provide implicit information about how consumers process the digits of a price. These models may also result in improved managerial pricing decisions.

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cf: Lambert, Zarrel V. 1975, "Perceived Prices as related to odd and even price endings," Journal of Retailings.