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Life could be so easy: the convenience effect of round price endings

An Erratum to this article was published on 18 March 2015

Abstract

Retailers are increasingly using round prices, a trend at odds with the marketing belief in the superiority of just-below prices. However, conclusive empirical evidence on the effectiveness of different price endings is still missing. Addressing this void, this paper presents four field-experimental studies with a broad array of samples revealing the central role of convenience in the context of price endings. Findings indicate that consumers perceive round prices as more convenient because their high cognitive accessibility saves time and effort during transactions, which is corroborated using a reaction time measure. Accordingly, round prices increase sales in purchase situations characterized by a high importance of convenience. Further, consumers’ convenience consciousness explains preferences for different price endings. This research thus contributes to the behavioral pricing literature by challenging traditional marketing beliefs and providing convincing evidence of the superiority of round prices in a complex world where many customers attach great importance to convenience.

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Correspondence to Jan Wieseke.

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Jan Wieseke, Anika Kolberg, and Laura Marie Schons contributed equally to this work.

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Table 5

Table 5 Psychometric properties and correlations of scales

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Wieseke, J., Kolberg, A. & Schons, L.M. Life could be so easy: the convenience effect of round price endings. J. of the Acad. Mark. Sci. 44, 474–494 (2016). https://doi.org/10.1007/s11747-015-0428-7

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Keywords

  • Price endings
  • Convenience
  • Round prices
  • Just-below prices
  • Behavioral pricing