Product Category Pricing and Future Price Attractiveness: 99-Ending Pricing in a Memory-Based Context

Two experiments were used to examine the impact of 99-ending pricing on memory-based comparisons with a multiple product set. Results indicate that when a target is priced above/below a stimulus set, use of 99-ending prices for the highest and lowest prices in the stimulus set lessens target price attractiveness compared to when the highest and lowest prices are 00-ending. Attractiveness of targets priced within the stimulus set was not impacted by the use of 99- versus 00-ending pricing. Overall, participants appear to use an assimilation/contrast approach based upon left-digit processing in determining target price attractiveness.

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► 99-ending pricing distorts memory-based comparisons with a multiple product set.
► New prices above range are less attractive when highest price in range is 99-ending.
► New prices below range are less attractive when lowest price in range is 99-ending.
► New prices within range show no 99-ending price effects.
► Results consistent with assimilation/contrast approach based on left-digit effects.