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The odd-ending price justification effect: the influence of price-endings on hedonic and utilitarian consumption

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Abstract

This paper examines how odd-ending pricing influences consumption of hedonic and utilitarian products. Four studies test the hypothesis that the discount image associated with odd-ending prices reduces anticipated guilt and provides justification for hedonic consumption – an effect the authors label the odd-ending price justification effect (OPJE). Study 1 reveals people are more likely to choose hedonic over utilitarian products when they have odd-ending prices. Study 2 finds that the effect of odd-ending prices on hedonic consumption is mediated by guilt reduction. Study 3 reveals a boundary condition for the OPJE – purchase likelihood of hedonic products increases only when monetary, not nonmonetary, guilt is reduced. Study 4 suggests the OPJE operates at an unconscious level, as consumers who are made aware of the trivial difference between odd- and round-ending prices are no longer influenced by odd-ending prices. The theoretical, practical, and research implications of these findings are discussed.

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Notes

  1. We found similar results regardless of whether the items were presented before or after the DV (Before: M different = 1.85, SD = 1.28; M affect = 3.23, SD = 2.52; After: M different = 1.63, SD = 1.36; M affect = 3.20, SD = 2.95).

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Authors and Affiliations

  1. Monte Ahuja College of Business, Cleveland State University, 2121 Euclid Ave, Cleveland, OH, 44115, USA

    Jungsil Choi

  2. University of Kansas, 1300 Sunnyside Ave, Lawrence, KS, 66045, USA

    Yexin Jessica Li, Priyamvadha Rangan, Promothesh Chatterjee & Surendra N. Singh

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  1. Jungsil Choi
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  2. Yexin Jessica Li
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  3. Priyamvadha Rangan
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  4. Promothesh Chatterjee
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Correspondence to Jungsil Choi.

Appendices

Appendix 1

Table 1 Summary of research on odd-ending pricing
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Appendix 2

Table 2 Details of the stimuli used in Study 1
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Choi, J., Li, Y.J., Rangan, P. et al. The odd-ending price justification effect: the influence of price-endings on hedonic and utilitarian consumption. J. of the Acad. Mark. Sci. 42, 545–557 (2014). https://doi.org/10.1007/s11747-014-0369-6

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