Although the use of $9 price endings is widespread amongst US retailers there is little evidence of their effectiveness. In this paper, we present a series of three field-studies in which price endings were experimentally manipulated. The data yield two conclusions. First, use of a $9 price ending increased demand in all three experiments. Second, the increase in demand was stronger for new items than for items that the retailer had sold in previous years. There is also some evidence that $9 price endings are less effective when retailers use “Sale” cues. Together, these results suggest that $9-endings may be more effective when customers have limited information, which may in turn help to explain why retailers do not use $9 price endings on every item.
This is a preview of subscription content, log in to check access.
Buy single article
Instant access to the full article PDF.
Price includes VAT for USA
Subscribe to journal
Immediate online access to all issues from 2019. Subscription will auto renew annually.
This is the net price. Taxes to be calculated in checkout.
Anderson, Eric T. and Duncan I. Simester. (1998). “The Role of Sale Signs”, Marketing Science 17(2), 139-155.
Anderson, Eric T. and Duncan I. Simester. (2001). “Are Sale Signs Less Effective When More Products Have Them?” Marketing Science 20(2), 121-142.
Blattberg, Robert C. and Scott A. Neslin. (1990). Sales Promotion: Concepts, Methods and Strategies. Englewood Cliffs, NJ: Prentice-Hall.
Daily Mail. (2000), “Asda Axes The 99p Price Ploy”, London, May 22, p. 15.
Direct Marketing Association. (2000). State of the Catalog Industry Report, New York: DMA.
Gabor, Andre and Granger, C.W.J. (1964). “Price Sensitivity of the Consumer”, Journal of Advertising Research, 4, 40-44.
Ginzberg, Eli. (1936). “Customary Prices”, The American Economic Review 26(2), 296.
Inman, Jeffrey J. and Leigh McAlister. (1993). “A Retailer Promotion Policy Model Considering Promotion Signal Sensitivity”, Marketing Science 12(4), 339-356.
Inman, Jeffrey J., Leigh McAlister, and Wayne D. Hoyer. (1990). “Promotion Signal: Proxy For A Price Cut”, Journal of Consumer Research 17(1), 74-81.
Lambert, Zarrel V. (1975). “Perceived Prices as Related to Odd and Even Price Endings”, Journal of Retailing 51 (Fall), 13-22.
Salmon, Walter J. and Gwendolyn K. Ortmeyer. (1992). Randall's Department Stores. Harvard Business School Publishing, 9-593-032, pp. 1-24.
Salmon, Walter J. and Gwendolyn K. Ortmeyer. (1993). Duncan Department Stores. Harvard Business School Publishing, 9-594-012, pp. 1-36.
Schindler, Robert M. (1991). “Symbolic Meanings of a Price Ending”, Advances in Consumer Research 18, 794-801.
Schindler, Robert M. and Thomas Kibarian. (1993). “Testing for Perceptual Underestimation of 9-ending Prices”. In Advances in Customer Research, Vol. 20. Provo, UT: Association for Customer Research, 580-585.
Schindler, Robert M. and Thomas Kibarian. (1996). “Increased Consumer Sales Response Through Use of 99-Ending Prices”, Journal of Retailing 72(2), 187-199.
Schindler, Robert M. and Patrick N. Kirby. (1997). “Patterns of Rightmost Digits Used in Advertised Prices: Implications for Nine-Ending Effects”, Journal of Customer Research 24 (September), 192-201.
Schindler, Robert M. and Lori S. Warren. (1988). “Effect of Odd Pricing on Choice of Items from a Menu”, Advances in Consumer Research 15, 348-353.
Schindler, Robert M. and Alan R. Wiman. (1989). “Effect of Odd Pricing on Price Recall”, Journal of Business Research 19 (November), 165-177.
Stiving, Mark. (2000). “Price-Endings When Prices Signal Quality”, Management Science 46(12), December, 1617-1629.
Stiving, Mark and Russel S. Winer. (1997). “An Empirical Analysis of Price Endings with Scanner Data”, Journal of Customer Research June, 57-67.
About this article
Cite this article
Anderson, E.T., Simester, D.I. Effects of $9 Price Endings on Retail Sales: Evidence from Field Experiments. Quantitative Marketing and Economics 1, 93–110 (2003). https://doi.org/10.1023/A:1023581927405
- price ending