E: Do consumers prefer round prices? Evidence from pay-what-you-want decisions and self-pumped gasoline purchases

 

September 19, 2013  Consumer Behavior  Consumers Go Out of Their Way to Pay in Round Numbers   56% of purchases at a self-service gasoline pump in upstate New York ended in .00, well above what would be expected by chance, and an additional 7% ended in .01, likely reflecting failed attempts to stop the pump at whole-dollar amounts, says a team led by Michael Lynn of Cornell. The findings, along with data on tipping and a pay-what-you-want online scheme, show a pronounced consumer preference for round-number payment amounts, the researchers say. SOURCE: Do consumers prefer round prices? Evidence from pay-what-you-want decisions and self-pumped gasoline purchases