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

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  • Fraccaro, Annalisa
  • Macé, Sandrine
  • Parguel, Béatrice

Abstract

Two large samples of prices indicate that odd prices (i.e., prices just below a round number, for example €1495 vs. €1500) 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

  • Fraccaro, Annalisa & Macé, Sandrine & Parguel, Béatrice, 2021. "The not-so-odd couple: Odd pricing in a luxury context," Journal of Business Research, Elsevier, vol. 136(C), pages 356-365.
    • Handle: RePEc:eee:jbrese:v:136:y:2021:i:c:p:356-365
    DOI: 10.1016/j.jbusres.2021.07.048
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    References listed on IDEAS

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    3. Nishio, Kazuki & Hoshino, Takahiro, 2022. "Joint modeling of effects of customer tier program on customer purchase duration and purchase amount," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).

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