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Drilling Down: Minding The Gap In Sizing Up Sale PricesEleven years ago, researchers discovered a quirk in consumers thinking about prices: they acted as if low digits were farther apart than higher ones. For example, consumers behaved as if there were more of a gap between three and four than between eight and nine. Mary Altaffer/AP Photo
A recent paper in the Journal of Consumer Research builds on that notion by examining peoples responses to sale prices for fictional items, focusing on their reactions to differing right-hand digits in price figures. The paper was written by Keith S. Coulter and Robin A. Coulter, professors at Clark University and the University of Connecticut, respectively. In one study, college students looked at an ad for a fictional roller skate that gave the skates regular and sale prices. Among other questions, the students were asked how likely they were to buy the skates and how large they thought the discount was. Students who saw ads showing a $233 skate marked down to $222 thought they were getting a larger discount than did students who saw a $199 skate marked down to $188, even though the opposite was true. The first group of students also rated themselves about 20 percent more likely to buy the skates than did the others. ALEX MINDLIN Tag CloudExternal InformationAdditional InformationRBS and Barclays join banks in $15bn bond insurer bailout plan$...Pearson shares drop on US concern... World Business Briefing: France: Deadline for Suez Bid Disclosure... China: Insurer’s Profit Doubles... Where Am I?News Main Page - Business - Drilling Down: Minding The Gap In Sizing Up Sale Prices |
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