Promotional benefits of 99-ending prices: the moderating role of intuitive and analytical decision style
Evidence suggests that retailers use 99-ending prices as a promotional technique. This paper explores the consumer perceived benefits of such promotional practices and the information processing conditions under which hedonic benefits are higher (lower) than utilitarian ones. In line with the benefit framework of sales promotion proposed by Chandon, Wansink, and Laurent (2000), 99-ends are not expected to be strictly associated to monetary savings benefit but also to a more hedonic benefit, fulfilling consumer’s needs for exploration. In addition, the analytic or intuitive consumer decision style (Mantel & Kardes, 1999) is likely to activate either the utilitarian benefit of savings or the hedonic benefit of exploration with more strength. The analysis of an on-line survey among 317 shoppers shows that both perceived savings and exploration benefits have a positive impact on proneness to buy 99-ends products with the saving benefits being stronger (weaker) for analytical decision makers (intuitive decision makers). The findings contribute to the better understanding of the image effect of 99-ends underlying its individual differences and help retailers and also pricing managers in their use of 99-ends as a promotional technique.
|Date of creation:||Dec 2011|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.business.uc3m.es/es/index|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stiving, Mark & Winer, Russell S, 1997. " An Empirical Analysis of Price Endings with Scanner Data," Journal of Consumer Research, Oxford University Press, vol. 24(1), pages 57-67, June.
- Inman, J Jeffrey & McAlister, Leigh & Hoyer, Wayne D, 1990. " Promotion Signal: Proxy for a Price Cut?," Journal of Consumer Research, Oxford University Press, vol. 17(1), pages 74-81, June.
- LAURENT, Gilles & CHANDON, Pierre & WANSINK, Brian, 2000. "A benefit congruency framework of sales promotion effectiveness," Les Cahiers de Recherche 698, HEC Paris.
When requesting a correction, please mention this item's handle: RePEc:cte:wbrepe:wb113809. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ana Poveda)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.