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More Magic 9

In the spirit of this weeks discussion on the importance and effectiveness of certain numbers used in marketing, I wanted to share another short piece of information on the use of numbers and the psychological effects they have on consumers buying habits.

According to Science Direct – The Journal of Retail and Consumer Services, sellers of high-priced goods such as hotel rooms tend to price their offerings with round numbers, but research indicates they should take a lesson from grocers and create prices ending in odd numbers — especially 9 (Remember my previous postings on the magic of using number 9? – DF).

In a study of tourists, Sabine Kleinsasser of Vienna University of Economics and Udo Wagner of the University of Vienna found that even when it comes to expensive goods, consumers prefer prices ending in 9. In food retailing, 60% of prices end in 9 and 90% end in either 9 or 5.

Further, this investigation considers how consumers of higher-priced goods (i.e., tourism services that are neither cheap nor luxurious) perceive odd and even prices and reveals whether these perceptions differ from previous findings that have nearly exclusively related to low-priced goods (e.g., food). This study therefore addresses a new realm and contributes several findings on price endings in reference to goods priced at higher levels. First, consumers of higher-priced goods might be influenced by price endings, just as consumers of low-priced goods are. Second, personal involvement and price interest have a moderating effect on perceptions of such price endings. Third, odd prices also make sense for sellers of higher-priced goods.

-DF

To read the full report click here!

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Written by David Frederick

May 4, 2011 at 10:39 AM

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