Effect of 99-ending prices and Hispanic ethnicity on a service: an empirical analysis

Date

2016

Authors

Gasparini, Luis

Journal Title

Journal ISSN

Volume Title

Publisher

Abstract

While prices are frequently set based on cost, demand, and competition, this research adds to a growing body of thought that behavioral considerations should also be considered. Most past studies have evaluated a number of effects regarding price endings. Yet, there is a considerable dearth of research regarding price endings in the contexts of services and consumer demographics. This study examined the effect of a 99-ending priced service in a retail medical clinic by utilizing a large-scale field test. Two specific effects were analyzed. The first was how demand is affected by 99- versus 00-ending prices. The second was what consumer demographics may influence those results. This research adds to the discussion that 99-ending prices may work under specific conditions. It further substantiates the association mechanism and the saliency of price endings in terms of the purchase-versus-not-purchase decision. The 99-price ending produced an effect when a heterogeneous demographic sample was analyzed as a homogenous group. Yet, when that same sample was examined further, the effect of the 99-ending price was actually produced by the interaction of the 99 price ending and the ethnicity variable (Hispanics).

Description

This item is available only to currently enrolled UTSA students, faculty or staff. To download, navigate to Log In in the top right-hand corner of this screen, then select Log in with my UTSA ID.

Keywords

Citation

Department

Marketing