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.
Citation:
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.
Authors
Junha Kim, Ohio State University, USA
Joseph K Goodman, Ohio State University, USA
Selin A. Malkoc, Ohio State University, USA
Volume
NA - Advances in Consumer Research Volume 47 | 2019
Share Proceeding
Featured papers
See MoreFeatured
Ritual Scholarship in Marketing: Past, Present and Future
Cele Otnes, University of Illinois at Urbana-Champaign, USA
Linda Tuncay Zayer, Loyola University Chicago, USA
Robert Arias, University of Illinois at Urbana-Champaign, USA
Arun Sreekumar, University of Illinois at Urbana-Champaign, USA
Featured
L7. The Joy of Shopping: Reconciling Mixed Effects of Positive Emotions on Shopping Behavior
Kelley Gullo, Duke University, USA
Duncan Simester, Massachusetts Institute of Technology, USA
Gavan Fitzsimons, Duke University, USA
Featured
G2. You Run When Time Flies: Time Metaphors Affect Inferences from the Speed of Time
N. Alican Mecit, HEC Paris, France
L. J. Shrum, HEC Paris, France
tina m. lowrey, HEC Paris, France