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The not-so-odd couple: Odd pricing in a luxury context

Author

Listed:
  • Annalisa Fraccaro
  • Sandrine Macé
  • Béatrice Parguel

    (DRM - MLAB - Dauphine Recherches en Management - MLAB - DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique)

Abstract

Two large samples of prices indicate that odd prices (i.e., prices just below a round number, for example €1,495 vs. €1,500) are used in the pricing of luxury products. An analysis of price endings suggests that luxury brand managers rely less on the drop-off mechanism than on the meaning mechanism, both of which have been used to show that odd prices influence consumers in the Fast-Moving Consumer Goods (FMCG) industry. Building on the odd-ending price justification effect, a conjoint analysis, indicating that a large proportion of luxury consumers prefer odd prices, supports the likely role of a guilt-relief mechanism in the pricing of luxury products.

Suggested Citation

  • Annalisa Fraccaro & Sandrine Macé & Béatrice Parguel, 2021. "The not-so-odd couple: Odd pricing in a luxury context," Post-Print halshs-03503449, HAL.
    • Handle: RePEc:hal:journl:halshs-03503449
    DOI: 10.1016/j.jbusres.2021.07.048
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03503449
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    References listed on IDEAS

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    3. Béatrice Parguel & Annalisa Fraccaro & Sandrine Macé, 2022. "Terminaison du prix dans le luxe : du mythe à la réalité," Post-Print lirmm-03912106, HAL.

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    Keywords

    Odd pricing; Luxury consumption; Justification effect; Conjoint analysis;
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