Consumers' perception of odd‐ending prices with the introduction of the Euro

Consumers' perception of odd‐ending prices with the introduction of the Euro This paper analyzes: the psychological effects that the introduction of the Euro in Italy has on consumers; and their perception of Euro odd prices, that is those prices that fall just below a round number. The aim is to provide some answers to an important question for retailers: How profitable is using odd prices expressed in Euros instead of in the old currency? Results show that consumers, sometimes, prefer round prices rather than odd‐ending ones, although the latter elicits a discounted‐price image more than the corresponding round one. Moreover, consumers tend to underestimate odd prices during perception and to convert them into Lire through an approximation heuristic strategy. In certain choice sets, odd prices are likely to affect the consumers’ heuristics. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Product & Brand Management Emerald Publishing

Consumers' perception of odd‐ending prices with the introduction of the Euro

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Publisher
Emerald Publishing
Copyright
Copyright © 2004 Emerald Group Publishing Limited. All rights reserved.
ISSN
1061-0421
DOI
10.1108/10610420410538096
Publisher site
See Article on Publisher Site

Abstract

This paper analyzes: the psychological effects that the introduction of the Euro in Italy has on consumers; and their perception of Euro odd prices, that is those prices that fall just below a round number. The aim is to provide some answers to an important question for retailers: How profitable is using odd prices expressed in Euros instead of in the old currency? Results show that consumers, sometimes, prefer round prices rather than odd‐ending ones, although the latter elicits a discounted‐price image more than the corresponding round one. Moreover, consumers tend to underestimate odd prices during perception and to convert them into Lire through an approximation heuristic strategy. In certain choice sets, odd prices are likely to affect the consumers’ heuristics.

Journal

Journal of Product & Brand ManagementEmerald Publishing

Published: May 1, 2004

Keywords: Consumer behaviour; Euro; Currencies; Pricing

References

  • The effects of odd pricing on demand
    Gendall, P.; Holdershaw, J.; Garland, R.

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