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This Number Just Feels Right: The Impact of Roundedness of Price Numbers on Product Evaluations

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  • Monica Wadhwa
  • Kuangjie Zhang

Abstract

This research proposes that because rounded numbers are more fluently processed, rounded prices (e.g., $200.00) encourage reliance on feelings. In contrast, because nonrounded numbers are disfluently processed, nonrounded prices (e.g., $198.76) encourage reliance on cognition. Thus, rounded (nonrounded) prices lead to a subjective experience of "feeling right" when the purchase decision is driven by feelings (cognition). Further, this sense of feeling right resulting from the fit between the roundedness of the price number and the nature of decision context can make positive reactions toward the target product more positive and negative reactions more negative, a phenomenon referred to as the rounded price effect in the current research. Results from five studies provide converging evidence for the rounded price effect. Findings from the current research further show that merely priming participants with rounded (nonrounded) numbers in an unrelated context could also lead to the rounded price effect. Finally, this research provides process support by showing that the rounded price effect is mediated by a sense of feeling right. This is the first research examining the differential impact of roundedness of prices on product purchase decisions, based on whether the purchase decision is driven by feelings versus cognition.

Suggested Citation

  • Monica Wadhwa & Kuangjie Zhang, 2015. "This Number Just Feels Right: The Impact of Roundedness of Price Numbers on Product Evaluations," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 41(5), pages 1172-1185.
  • Handle: RePEc:oup:jconrs:doi:10.1086/678484
    DOI: 10.1086/678484
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    Cited by:

    1. Pleshcheva, Vlada, 2019. "Metric and Scale Effects in Consumer Preferences for Environmental Benefits," Rationality and Competition Discussion Paper Series 147, CRC TRR 190 Rationality and Competition.
    2. Edward S. Knotek & Doron Sayag & Avichai Snir, 2019. "The Effects of Price Endings on Price Rigidity: Evidence from VAT Changes," Working Papers 19-24, Federal Reserve Bank of Cleveland.
    3. Basu, Shankha & Savani, Krishna, 2017. "Choosing one at a time? Presenting options simultaneously helps people make more optimal decisions than presenting options sequentially," Organizational Behavior and Human Decision Processes, Elsevier, vol. 139(C), pages 76-91.
    4. Wadhwa, Monica & Zhang, Kuangjie, 2019. "When numbers make you feel: Impact of round versus precise numbers on preventive health behaviors," Organizational Behavior and Human Decision Processes, Elsevier, vol. 150(C), pages 101-111.
    5. Snir, Avichai & Levy, Daniel, 2021. "If You Think 9-Ending Prices Are Low, Think Again," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 6(1 (Forthc).
    6. Maggie Rong Hu & Xiaoyang Li & Yang Shi & Xiaoquan (Michael) Zhang, 2023. "Numerological Heuristics and Credit Risk in Peer-to-Peer Lending," Information Systems Research, INFORMS, vol. 34(4), pages 1744-1760, December.
    7. Snir, Avichai & Chen, Haipeng (Allan) & Levy, Daniel, 2022. "Zero-Ending Prices, Cognitive Convenience, and Price Rigidity," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 203, pages 519-542.
    8. Santana, Shelle & Thomas, Manoj & Morwitz, Vicki G., 2020. "The Role of Numbers in the Customer Journey," Journal of Retailing, Elsevier, vol. 96(1), pages 138-154.
    9. Hu, Bill & McInish, Thomas & Miller, Jonathan & Zeng, Li, 2019. "Intraday price behavior of cryptocurrencies," Finance Research Letters, Elsevier, vol. 28(C), pages 337-342.
    10. Vaidyanathan, Rajiv & Aggarwal, Praveen, 2020. "Does MSRP impact women differently? Exploring gender-based differences in the effectiveness of retailer-provided reference prices," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    11. Li, Yi & Pandelaere, Mario, 2021. "The denomination–spending matching effect," Journal of Business Research, Elsevier, vol. 128(C), pages 338-349.
    12. Wang, Jie & Zhang, Xiadan & Jiang, Jing, 2022. "Healthy-Angular, unhealthy-circular: Effects of the fit between shapes and healthiness on consumer food preferences," Journal of Business Research, Elsevier, vol. 139(C), pages 740-750.
    13. Jeong, Ji Youn & Crompton, John L., 2017. "The use of odd-ending numbers in the pricing of five tourism services in three different cultures," Tourism Management, Elsevier, vol. 62(C), pages 135-146.
    14. Khalil, Mary & Septianto, Felix & Lang, Bodo & Northey, Gavin, 2021. "The interactive effect of numerical precision and message framing in increasing consumer awareness of food waste issues," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    15. Jain, Gaurav & Gaeth, Gary J. & Nayakankuppam, Dhananjay & Levin, Irwin P., 2020. "Revisiting attribute framing: The impact of number roundedness on framing," Organizational Behavior and Human Decision Processes, Elsevier, vol. 161(C), pages 109-119.
    16. Jessica B. Hoel & Prachi Jain & Bridget Galaty, 2022. "JUST VENMO ME: Does form of payment affect risk taking and intertemporal choice?," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 8(1), pages 16-33, December.
    17. Petrowsky, Hannes M. & Schweinsberg, Martin & Seitz, Lennart & Funk, Burkhardt & Loschelder, David D., 2023. "Deal or no deal? How round vs precise percentage offers and price-ending mimicry affect impasse risk in over 25 million eBay negotiations," Journal of Economic Psychology, Elsevier, vol. 94(C).
    18. Mishra, Abhishek, 2016. "Attribute-based design perceptions and consumer-brand relationship: Role of user expertise," Journal of Business Research, Elsevier, vol. 69(12), pages 5983-5992.
    19. Wang, Yan & Jiang, Jing & Yang, Ying, 2023. "Magic odd numbers: The effect of numerical parity on variety-seeking," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    20. Mirela Martinčić & Dijana Vuković & Anica Hunjet, 2022. "Consumer Responses to Selected Activities: Price Increases, Lack of Product Information and Numerical Way of Expressing Product Prices," JRFM, MDPI, vol. 15(6), pages 1-19, June.
    21. He (Michael) Jia & Echo Wen Wan & Wanyi Zheng, 2023. "Stars versus Bars: How the Aesthetics of Product Ratings “Shape” Product Preference," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 50(1), pages 142-166.
    22. Dengfeng Yan, 2016. "Numbers Are Gendered: The Role of Numerical Precision," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 43(2), pages 303-316.

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