Cheng, Y. H., Chuang, S. C., Chang, C. J., and Cheng, W. Y. 2016. The Boundary Conditions of the Nine-Ending Pricing Effect in Different Evaluation Modes: Separate, Joint and Sequential. NTU Management Review, 26 (2): 73-106. https://doi.org/10.6226/NTUMR.2016.SEP.A102-066
Yin-Hui Cheng, Associate Professor, Department of International Business, National Taichung University of Education
Shih-Chieh Chuang, Professor, Department of Business Administration, National Chung Cheng University
Chia-Jung Chang, Assistant Professor, Department of Business Administration, National Taiwan Normal University
Wei-Yun Cheng, Master, Graduate Institute of Marketing Management, National Chung Cheng University
Abstract
This paper, which is based on a heuristic-systematic dual-process model, identifies the boundary conditions of the nine-ending pricing effect when nine ending and zero-ending prices are separately, jointly, and sequentially evaluated. Study 1 proves the occurrence of the nine-ending effect in separate, but not joint, evaluation conditions. Study 2 adds an extra sequential evaluation mode to Study 1 and measures actual quantitative estimations with a shopping budget. The results are consistent with those from Study 1. The results of Study 3 demonstrate that the perceived price difference between nine- and zero-ending digits with different leftmost digits is greater in the separate-evaluation mode than it is in the jointevaluation mode. In Study 4, task complexity is manipulated and the results show that no nine-ending effect is observed when cognitive capacity, which is induced by greater task complexity, exceeds the capabilities that people possess.
Keywords
nine-ending pricing effectevaluation modesheuristic-systematic model