The Left-Digit Effect Discourages Consumers to Upgrade

Conventional wisdom suggests marketers should utilize the left-digit effect (e.g., $19.99) to increase sales. We find that when there is a vertical upgrade opportunity, the left-digit effect can decrease upgrades and revenues. Instead, consumers upgrade and consequently spend more when the starting price is set above a threshold.


Junha Kim, Joseph K Goodman, and Selin A. Malkoc (2019) ,"The Left-Digit Effect Discourages Consumers to Upgrade", in NA - Advances in Consumer Research Volume 47, eds. Rajesh Bagchi, Lauren Block, and Leonard Lee, Duluth, MN : Association for Consumer Research, Pages: 693-694.


Junha Kim, Ohio State University, USA
Joseph K Goodman, Ohio State University, USA
Selin A. Malkoc, Ohio State University, USA


NA - Advances in Consumer Research Volume 47 | 2019

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