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臺大管理論叢
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26
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2
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99
prices than this research does. Second, this article develops a conceptual framework based on
HSM to explore the boundary conditions of nine-ending effects. With the link of cognitive
effort measured by response time, the findings may not only show a better explanation than
distance effect, and resolve the inconsistent results showed in previous research, but also
extend the methodological of evaluation modes with a new perspective by HSM.
Besides, the more cognitive effort would be that joint evaluation makes participants
aware of the retailer’s attempt to influence their price magnitude perception, and this in turn
causes them to adjust for the 99 cents and thus encode 2.99 as 3.00. The less cognitive effort
would be that when the 9-ending and 0-ending prices are presented side by side (2.99 vs.
3.00), then the analog representation of 2.99 is assimilated towards 2.00. Both the results are
compatible with Study 4; participants might be less likely to correct under conditions of
cognitive load or when the distance between the prices on the internal analog scale is large.
In other words, these results show that mitigation of left-digit anchoring is difficult because
it requires cognitive resources.
Finally, the evidence concerning the boundary conditions of nine-ending effect have
been examined and presented interesting results that many conditions will diminish the
influence of nine-ending digit and re-confirm the influence of leftmost digit on nine-ending
effect as Thomas and Morwitz (2005) and Manning and Sprott (2009) have. Future
researchers, therefore, have to be more careful in examining the nine-ending effect.
The results of the present research offer practical implications for predicting actual
purchasing behavior, as people constantly encounter buying circumstances involving either
separate or joint evaluations in daily life (Hsee, 1996). However, this article adds a
sequential comparison to improve the evaluation modes and examines the influence on nine-
ending effect. The diversity in evaluation conditions provides an advantage in marketing
campaigns depending on the managerial approach. For instance, if the retailers want to create
the nine-ending effect (the perception of a much lower price), nine-ending priced items could
be only advertised (e.g., on a DM) or might be sold in the obvious place (e.g., cash register
desk or entrances to the stores) to make consumers use the SE mode to judge the price
information. The example may apply to the physical in-store allocation or on-line of
products. In addition, providing very simple illustrations (even only a big price tag) or
complicated information of the products (over-cognitive loading for a consumer) may
increase the nine-ending effect and raise the revenues.