All numbers are not created equal: Price points, price processing and price rigidity

Haipeng Allan Chen, Avichai Snir, Daniel Levy, Alex Gotler

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

One common type of price points is 9-ending prices, also known as psychological prices (Kashyap 1995; Levy et al. 2011; Knotek 2010). In the current research, we use data from a lab experiment, a field study, and a large Midwestern US supermarket chain to study the rigidity of 9-ending prices. Our results demonstrate a hitherto undocumented asymmetry in rigidity associated with 9-ending prices, and provide a link between consumers' cognitive costs and pricing policies that have significant effects on demand and inflation.

Original languageEnglish
Pages (from-to)637-639
Number of pages3
JournalAdvances in Consumer Research
Volume40
StatePublished - 2012

ASJC Scopus subject areas

  • Applied Psychology
  • Economics and Econometrics
  • Marketing

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