Focusing on the Left Digit: an Encoding Or an Estimation Bias?

Tatiana Sokolova, HEC Paris, France
Manoj Thomas, Cornell University, USA
This research investigates the mechanisms that underlie the left-digit effect. We argue against the biased encoding account and in favor of the rounding-up aversion account. Three studies demonstrate that consumers encode price endings, use them in their estimation strategy choices and become less averse to rounding-up in memory-based price comparisons.
[ to cite ]:
Tatiana Sokolova and Manoj Thomas (2014) ,"Focusing on the Left Digit: an Encoding Or an Estimation Bias?", in NA - Advances in Consumer Research Volume 42, eds. June Cotte and Stacy Wood, Duluth, MN : Association for Consumer Research, Pages: 690-691.