Effects of $9 Price Endings on Retail Sales: Evidence from Field Experiments

By Eric T. Anderson, Duncan Simester. 2003

260 citations recorded by the source corpus.

Subfields: General Decision Sciences, Marketing

View Paper: https://www.semanticscholar.org/paper/9bf6275b9f72aa205f130a7b34763d0ace7d0f2f

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In General Decision Sciences

1. R. Schindler
2. Patricia M. Dechow
3. Eric J. Allen
4. Ming Chen
5. Devin G. Pope
6. George Wu
7. Raj Chetty
8. Zhi-Long Chen

In Marketing

1. Harikesh S. Nair
2. Stephan M. Liozu
3. Pradeep Chintagunta
4. R. Schindler
5. Kory Kroft
6. Patricia M. Dechow
7. Eric J. Allen
8. Ming Chen

Citations in the corpus

• Direct Evidence of Ending- Digit Drop-Off in Price Information Processing (2005, background): “There is evidence that this practice can have a substantial effect on sales (e.g., Anderson & Simester, 2003; Kalyanam & Shively, 1998), although the effect does not seem to be uniformly strong.”
• Is innovation in pricing your next source of competitive advantage (2014, background): “Despite their widespread use and possible wearoff effects, 9 endings still seem to lead to higher sales (Anderson & Simester, 2003).”
• Reference-Dependent Preferences: Evidence from Marathon Runners (2014, background): “…originated with the runner, taxi driver, or homeowner (i.e., internal reference points) or with someone else (i.e., an audience effect).9 Another alternative mechanism for bunching of finishing times could be left-digit bias (Anderson and Simester, 2003; Lacetera, Pope, and Sydnor, 2012).”
• Recent Developments in Dynamic Pricing Research: Multiple Products, Competition, and Limited Demand Information (2015, background): “There are certain price points at which consumers become much more willing to buy, and hence retailers that follow a sound pricing strategy often use a small set of popular price points for a product (e.g., Allen 2011, Anderson and Simester 2003).”
• Salience and Taxation: Theory and Evidence (2008, background): “Some studies in the marketing literature (e.g., Anderson and Simester 2003) nd that demand drops discontinuously when prices cross integer thresholds (such as $3.99 vs. $4.01), and that retailers respond to this by setting prices that end in 9 to maximize pro ts.”
• Field Experiments in Economics: the Past, the Present, and the Future (2008, unknown): “Anderson and Simester (2003) collect facts useful for constructing a theory about consumer reactions to $9 endings on prices. They explore the effects of different price endings by conducting a controlled experiment with a retail catalog merchant. Randomly selected customers receive one of three cat”
• The 99 price ending as a signal of a low-price appeal (2003, background): “…they can communicate to consumers (e.g.,Bader nd Weinland 1932; Schindler 1991), and there is recent vidence from field studies that meanings or other factors speific to a particular price ending can have substantial effects n consumer sales (Anderson and Simester 2003; Kalyanam nd Shively 1998).”
• Structural Workshop Paper - Discrete-Choice Models of Consumer Demand in Marketing (2011, background): “7Exceptions include cases where prices signal quality (e.g., Anderson and Simester 2003; Shiv, Carmon and Ariely 2005).”