Pricing & Consumer behavior

 

MAY 04, 2011 Wednesday Prices Ending in 9 Cast a Spell on Luxury Buyers 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. 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. Source: Price endings and tourism consumers' price perceptions