The 99 price ending as a signal of a low-price appeal

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Abstract

There is evidence that the rightmost digits, or endings, of retail prices can communicate meanings to consumers. To better understand how such meanings are formed, this paper addresses the question of how the 99 price ending can have a low-price meaning even though 99-ending prices tend to be higher rather than lower competitive prices. Analysis of two large samples of newspaper price advertising indicates that there is a strong and robust correlation between the use of the 99 price ending and the presence of a low-price appeal such as a claimed discount. It is suggested that the salience of price advertising leads it to dominate other sources of information in the consumer's learning of price-ending meanings.

Original languageEnglish (US)
Pages (from-to)71-77
Number of pages7
JournalJournal of Retailing
Volume82
Issue number1
DOIs
StatePublished - 2006

All Science Journal Classification (ASJC) codes

  • Marketing

Keywords

  • 99 price ending
  • Consumer perceptions
  • Price advertising
  • Retail prices

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