Showing 1 - 10 of 51
If producers have more information than consumers about goods’ attributes, then they may use non-price (rather than … conditions. Although consumers should be indifferent between equivalent changes in goods' prices and quantities, empirical … evidence suggests that consumers often respond differently to price changes and equivalent quantity changes. We offer a …
Persistent link: https://www.econbiz.de/10015226027
We study different notions of sale and regular prices, and their variability with store pricing-formats. We use data from three large stores with different pricing-formats (EDLP/Hi-Lo/Hybrid) that are located within 1-km radius. Importantly, the data contain both the actual transaction prices...
Persistent link: https://www.econbiz.de/10015261248
We document an asymmetry in the rigidity of 9-ending prices relative to non-9-ending prices. Consumers have difficulty …
Persistent link: https://www.econbiz.de/10015262673
consumers perceive them as being relatively low. Are 9-ending prices really lower than comparable non 9-ending prices … findings imply that although consumers may associate 9-ending prices with low prices, the data indicates otherwise. The fourth … finding offers a possible explanation for this misperception. Retailers may be using 9-ending prices to draw consumers …
Persistent link: https://www.econbiz.de/10015264289
9-ending prices, which comprise between 40%–95% of retail prices, are popular because shoppers perceive them as being low. We study whether this belief is justified using scanner price-data with over 98-million observations from a large US grocery-chain. We find that 9-ending prices are higher...
Persistent link: https://www.econbiz.de/10015265435
Prices that end with 9, also known as psychological price points, are common, comprising about 70% of the retail prices. They are also more rigid than other prices. We take advantage of a natural experiment to document an emergence of a new price ending that has the same effects as 9-endings. In...
Persistent link: https://www.econbiz.de/10015255491
If producers have more information than consumers about goods’ attributes, then they may use non-price (rather than … conditions. Although consumers should be indifferent between equivalent changes in goods' prices and quantities, empirical … evidence suggests that consumers often respond differently to price changes and equivalent quantity changes. We offer a …
Persistent link: https://www.econbiz.de/10010435128
The finding of small price changes in many retail price datasets is often viewed as a puzzle. We show that a possible explanation for the presence of small price changes is related to sales volume, an observation that has been overlooked in the existing literature. Analyzing a large retail...
Persistent link: https://www.econbiz.de/10015213237
If producers have more information than consumers about goods’ attributes, then they may use non-price (rather than … conditions. Although consumers should be indifferent between equivalent changes in goods' prices and quantities, empirical … evidence suggests that consumers often respond differently to price changes and equivalent quantity changes. We offer a …
Persistent link: https://www.econbiz.de/10011093856
Prices that end with 9, also known as psychological price points, are common, comprising about 70% of the retail prices. They are also more rigid than other prices. We take advantage of a natural experiment to document an emergence of a new price ending that has the same effects as 9-endings. In...
Persistent link: https://www.econbiz.de/10011630697