Although it has been proposed that recall processes play a role in the retail sales effects of 9-ending pricing, substantial effects of price endings on the level of recalled prices has not been demonstrated. With an improved testing procedure, it is found that the level of a set of prices with low ending digits (such as 1 or 2 in the dollars place) is more likely to be overestimated in recall than the level of equivalent sets of prices with high ending digits (such as 6, 7, or 9 in the dollars place). The results of the study support the role of left-to-right processing of price information and point out some consequences for retailers of the use of low numbers in price-ending digits.
All Science Journal Classification (ASJC) codes
- Management of Technology and Innovation