Adam Nguyen, Roger M. Heeler and Zinaida Taran
Retail prices ending in 0, 5 (even ending), and 9 (odd ending) are common in western countries. The purpose of this paper is to explain variances in odd versus even ending…
Abstract
Purpose
Retail prices ending in 0, 5 (even ending), and 9 (odd ending) are common in western countries. The purpose of this paper is to explain variances in odd versus even ending practices in western versus non‐western countries, using Hall's high‐low context construct.
Design/methodology/approach
A survey of web‐posted prices in ten countries is conducted.
Findings
Relative to their counterparts in low context, western cultures, consumers in high context, non‐western cultures may be less prone to the illusion of cheapness or gain created by odd endings, and more likely offended by such perceived attempts to “fool” them. Thus, odd endings are predicted to operate at a higher level of value significance to consumers, and to occur less frequently relative to even endings, in high than low, context cultures. Data support the predictions.
Research limitations/implications
Additional empirical studies are recommended to further test the proposed theory.
Practical implications
Western firms need to be cautious when replicating odd ending practices in non‐western markets. Even ending is a “safer” pricing format. Odd endings, if used, should convey cheapness or gain that is more “real”.
Originality/value
The research results indicate that the results of western‐based consumer research cannot be treated as universally applicable. The high‐low context theory supplements prior theories for price ending patterns in non‐western countries, and those based on perceptions and affect in the west. The study also demonstrates the usefulness of the web method in international pricing research.
Details
Keywords
Adam Nguyen, Roger M. Heeler and Cheryl Buff
The purpose of this paper is to test inferred bundle saving versus loss aggregation as explanations of consumer evaluations of bundles. Inferred bundle saving posits that consumer…
Abstract
Purpose
The purpose of this paper is to test inferred bundle saving versus loss aggregation as explanations of consumer evaluations of bundles. Inferred bundle saving posits that consumer impressions of bundles are anchored in the daily economic reality that collections of goods as bundles are usually marketed at a discount to the same collection not bundled. Loss aggregation theory posits that consumers perceive an aggregation of prices as being less than the sum of its parts because they perceive prices as losses, and losses have a concave value perception; that is a small loss is perceived as large relative to its physical amount.
Design/methodology/approach
Previous research has shown that inferred bundle saving is a plausible alternative to loss aggregation. This research tests the two theories against each other in three experimental studies where they make opposite predictions. A meta‐analysis of the first two studies provides added evidence.
Findings
The predictions of inferred bundle saving were supported over the predictions of the loss aggregation prediction.
Research limitations/implications
Additional experimental studies are recommended to further test the proposed theory and its boundaries.
Practical implications
The presentation of a bundle to consumers sends a powerful message that “here lies a bargain.” In the absence of other information, consumers will form a favorable impression of the offering just because it is a bundle (and therefore must be a good buy). If the bundle is known to be undiscounted, then consumer reaction to the bundle is negative. Firms that offer bundles should ensure that their total message is consistent with savings of cash, or add consumer value through convenience/time saving.
Originality/value
The everyday observation that consumers expect a bundle to equal a saving has been ignored in favor of more complex theories of consumer behavior in many previous studies. The study presents results that favor the simpler theory.
Details
Keywords
Roger M. Heeler, Adam Nguyen and Cheryl Buff
The paper seeks to propose and test a theory of the psychological impact of price bundling that is derived from bundling's economic impact. It is called the inferred bundle saving…
Abstract
Purpose
The paper seeks to propose and test a theory of the psychological impact of price bundling that is derived from bundling's economic impact. It is called the inferred bundle saving hypothesis. In the absence of explicit information about bundle savings, consumers infer a bundle saving when presented with a bundle offer. It is suggested that inferred bundle saving provides a simple, parsimonious explanation for pre‐ and post‐purchase bundle effects.
Design/methodology/approach
The theory is tested in two laboratory studies that employ partial replications of two prior price bundle studies.
Findings
The results show that the inferred bundle saving effect is robust in both product and service contexts, and can potentially explain the bundle effects found in these two studies.
Research limitations/implications
Additional experimental studies are recommended to further test the proposed theory.
Practical implications
First, contrary to convention, it is not always optimal for firms to integrate price information in a single bundle price. Second, firms may sometimes use the price‐bundling format to signal a bundle saving without actually offering one. Third, firms can manage consumption and expected refund of bundles by manipulating consumer perception of bundle saving.
Originality/value
It is intuitive that consumers expect a bundle saving. However, this paper is the first to establish empirically the existence of this inferred bundle saving and demonstrate its potential as a theoretical explanation for various bundle effects. The research challenges the extant view that price bundling per se always enhances consumer pre‐purchase evaluation. Moreover, it connects economic and psychological research, as well as pre‐ and post‐purchase analysis, of bundle effects.
Details
Keywords
Dennis N. Bristow and Brad Kleindl
This paper presents the results of a multimethod research study, which incorporates survey and experimental methodologies, designed to further explore the underpinnings of…
Abstract
This paper presents the results of a multimethod research study, which incorporates survey and experimental methodologies, designed to further explore the underpinnings of cultural differences in consumer responses to advertising messages. The study was designed to measure and assess differences in the self‐esteem and susceptibility to social influence of Japanese and United States college‐aged consumers. In general, it was hypothesized that Japanese consumers would have lower self‐esteem and higher susceptibility to social influence than would their US counterparts. The study provided evidence to support those hypotheses.
The main emphasis of nutritional study, until within comparatively recent years, was placed on a consideration of the energy or calorie value of a diet. A diet was considered…
Abstract
The main emphasis of nutritional study, until within comparatively recent years, was placed on a consideration of the energy or calorie value of a diet. A diet was considered sufficient or otherwise depending on the number of calories it contained. The modern trend in nuitrition, however, has tended to follow an opposite direction—the quantitative aspect has been relegated to a subsidiary position, and the quality of the diet is now considered as of supreme importance. In this qualitative assessment vitamins have been placed in the forefront, and there has been a tendency to overstress the nutritional importance of these essentials to the exclusion of perhaps as important dietary constituents.
A review of the research areas of faculty members and the teaching programmes of this institution.
Abstract
A review of the research areas of faculty members and the teaching programmes of this institution.