The influence of price endings on consumer behaviour: an application of the psychology of perception
Price ending is an important pricing strategy that has been used by retailers over the years. The trend seems to be effective considering how consumers react especially to products with odd price endings. This review is aimed at providing an understanding of the psychological influences of price end...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Mendel University Press
2011-01-01
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| Series: | Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis |
| Subjects: | |
| Online Access: | https://acta.mendelu.cz/59/7/0029/ |
| _version_ | 1828797507600121856 |
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| author | Emmanuel Selase Asamoah Miloslava Chovancová |
| author_facet | Emmanuel Selase Asamoah Miloslava Chovancová |
| author_sort | Emmanuel Selase Asamoah |
| collection | DOAJ |
| description | Price ending is an important pricing strategy that has been used by retailers over the years. The trend seems to be effective considering how consumers react especially to products with odd price endings. This review is aimed at providing an understanding of the psychological influences of price ending on buyers, using the theory of perception. It analysis theories and existing literature on the topic and brings out augmentative pricing strategies that retailers can adopt in consumer markets. Also, an exploratory study was conducted to identify the prevalence of odd prices in the Czech retail sector. The exploratory study was based on 16 different home-drop advertising material, short magazines and leaflets by retails shops in the Zlin region. These leaflets, short magazines and home-drop advertising material were collected and analyzed over 3 month period to identify the dominance of odd and even pricing strategy (total number of advertisements = 922). Also, in order to have a comprehensive coverage of the odd-even pricing phenomenon, opinions of some buyers were sought on their perception of odd-pricing and how the odd-pricing influence their buying decisions. Opinions of a total of 173 shoppers were sampled. The study found clear evidence of the predominant use and preference by shoppers for odd prices compared to even prices in different product categories, especially fast moving consumer goods. The paper concludes by providing the marketing implications and suggestions on when odd and even price ending strategies should be used and for what category of products this strategy can be used. Also, the implications of price endings on marketing communication are highlighted. |
| first_indexed | 2024-12-12T04:41:38Z |
| format | Article |
| id | doaj.art-76eae1d035b14ab8b4ba0c00c347d896 |
| institution | Directory Open Access Journal |
| issn | 1211-8516 2464-8310 |
| language | English |
| last_indexed | 2024-12-12T04:41:38Z |
| publishDate | 2011-01-01 |
| publisher | Mendel University Press |
| record_format | Article |
| series | Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis |
| spelling | doaj.art-76eae1d035b14ab8b4ba0c00c347d8962022-12-22T00:37:47ZengMendel University PressActa Universitatis Agriculturae et Silviculturae Mendelianae Brunensis1211-85162464-83102011-01-01597293810.11118/actaun201159070029The influence of price endings on consumer behaviour: an application of the psychology of perceptionEmmanuel Selase Asamoah0Miloslava Chovancová1Ústav managementu a marketingu, Fakulta managementu a ekonomiky, Univerzita Tomáše Bati ve Zlíně, Mostní 5139, 760 01, Zlín, Česká republikaÚstav managementu a marketingu, Fakulta managementu a ekonomiky, Univerzita Tomáše Bati ve Zlíně, Mostní 5139, 760 01, Zlín, Česká republikaPrice ending is an important pricing strategy that has been used by retailers over the years. The trend seems to be effective considering how consumers react especially to products with odd price endings. This review is aimed at providing an understanding of the psychological influences of price ending on buyers, using the theory of perception. It analysis theories and existing literature on the topic and brings out augmentative pricing strategies that retailers can adopt in consumer markets. Also, an exploratory study was conducted to identify the prevalence of odd prices in the Czech retail sector. The exploratory study was based on 16 different home-drop advertising material, short magazines and leaflets by retails shops in the Zlin region. These leaflets, short magazines and home-drop advertising material were collected and analyzed over 3 month period to identify the dominance of odd and even pricing strategy (total number of advertisements = 922). Also, in order to have a comprehensive coverage of the odd-even pricing phenomenon, opinions of some buyers were sought on their perception of odd-pricing and how the odd-pricing influence their buying decisions. Opinions of a total of 173 shoppers were sampled. The study found clear evidence of the predominant use and preference by shoppers for odd prices compared to even prices in different product categories, especially fast moving consumer goods. The paper concludes by providing the marketing implications and suggestions on when odd and even price ending strategies should be used and for what category of products this strategy can be used. Also, the implications of price endings on marketing communication are highlighted.https://acta.mendelu.cz/59/7/0029/price endingconsumer behaviourperceptionpsychologyprice |
| spellingShingle | Emmanuel Selase Asamoah Miloslava Chovancová The influence of price endings on consumer behaviour: an application of the psychology of perception Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis price ending consumer behaviour perception psychology price |
| title | The influence of price endings on consumer behaviour: an application of the psychology of perception |
| title_full | The influence of price endings on consumer behaviour: an application of the psychology of perception |
| title_fullStr | The influence of price endings on consumer behaviour: an application of the psychology of perception |
| title_full_unstemmed | The influence of price endings on consumer behaviour: an application of the psychology of perception |
| title_short | The influence of price endings on consumer behaviour: an application of the psychology of perception |
| title_sort | influence of price endings on consumer behaviour an application of the psychology of perception |
| topic | price ending consumer behaviour perception psychology price |
| url | https://acta.mendelu.cz/59/7/0029/ |
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