Business Faculty Publications

Document Type

Article

Publication Date

1-31-2014

Publication Title

Journal of the Academy of Marketing Science

Keywords

pricing; justification effect; hedonic consumption; marketing

Disciplines

Advertising and Promotion Management | Marketing

Abstract

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.

DOI

10.1007/s11747-014-0369-6

Version

Postprint

Volume

42

Issue

5

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