Journal Article

The odd-ending price justification effect: the influence of price-endings on hedonic and utilitarian consumption

Chatterjee, Promothesh, Li, Yexin Jessica, Singh, Surendra N., Choi, Jungsil, Rangan, Priyamvadha

2014

Overview

This paper examines how odd-ending pricing influences consumption of hedonic and utilitarian products. Four studies test the hypothesis that the discount image associated with odd-ending prices reduces anticipated guilt and provides justification for hedonic consumption – an effect the authors label the odd-ending price justification effect (OPJE). Study 1 reveals people are more likely to choose hedonic over utilitarian products when they have odd-ending prices. Study 2 finds that the effect of odd-ending prices on hedonic consumption is mediated by guilt reduction. Study 3 reveals a boundary condition for the OPJE – purchase likelihood of hedonic products increases only when monetary, not nonmonetary, guilt is reduced. Study 4 suggests the OPJE operates at an unconscious level, as consumers who are made aware of the trivial difference between odd- and round-ending prices are no longer influenced by odd-ending prices. The theoretical, practical, and research implications of these findings are discussed.

• Publisher: Springer US,Springer,Springer Nature B.V
• Subject: Altruism / Analysis / Behavior / Business and Management / Consumer behavior / Consumers / Consumption / Hypothesis testing / Influence / Marketing / Motivation / Original Empirical Research / Prices / Pricing / Pricing policies / Purchase intention / Purchasing / Sales promotions / Social Sciences / Studies / Western culture