All Numbers Are Not Created Equal: Price Points, Price Processing and Price Rigidity

Haipeng Chen, Texas A&M University, USA
Avichai Snir, Bar-Ilan University, Israel
Daniel Levy, Bar-Ilan University, Israel
Alex Gotler, Open University, Israel
Using multiple datasets, we find that consumers are less likely to recognize a larger price or a price increase that ends with 9, but more likely to recognize a price increase from a 9-ending to a non 9-ending. Retailers therefore set 9-ending prices more often after price increases than decreases.
[ to cite ]:
Haipeng Chen, Avichai Snir, Daniel Levy, and Alex Gotler (2012) ,"All Numbers Are Not Created Equal: Price Points, Price Processing and Price Rigidity", in NA - Advances in Consumer Research Volume 40, eds. Zeynep G├╝rhan-Canli, Cele Otnes, and Rui (Juliet) Zhu, Duluth, MN : Association for Consumer Research, Pages: 637-639.