Journal of the Academy of Marketing Science
pricing; justification effect; hedonic consumption; marketing
Advertising and Promotion Management | Marketing
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.
Choi, J., Li, Y.J., Rangan, P., Chatterjee, P., & Singh, S.N. (2014). The odd-ending price justification effect: The influence of price-endings on hedonic and utilitarian consumption. Journal of the Academy of Marketing Science, 42(5), 545-557. doi:10.1007/s11747-014-0369-6
The final publication is available at Springer via http://dx.doi.org/10.1007/s11747-014-0369-6