Electronic Resource
Bingley
:
Emerald
The @journal of product & brand management
7 (1998), S. 421-432
ISSN:
1061-0421
Source:
Emerald Fulltext Archive Database 1994-2005
Topics:
Economics
Notes:
This study used choice modelling to estimate the effect of odd pricing on the demand for three products: a $4 can of fly spray, a $7 block of cheese, and a $50 electric kettle, with each product represented by three different brands. For cheese and fly spray a significant odd-price effect was observed at 99 cents but not at 95 cents, whereas for the electric kettles a significant odd-price effect occurred at 95 cents but not at 99 cents. The estimated value of the odd-pricing effect ranged from 4 cents for fly spray, to 6 cents for cheese, to $3.18 for the kettles. The results of the study provide empirical support for the assumption that odd pricing generates greater-than-expected demand, at least at the individual brand level, and for the common practice of setting retail prices that end in 95 cents or 99 cents.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1108/10610429810237754
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