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Are Consumers Heterogeneous in their Preferences for Odd and Even Prices? New Empirical Findings from a Conjoint Study

Baumgartner, Bernhard ; Steiner, Winfried



Abstract

While marketing theories provide some justification for the common practice of setting 9-ending prices, the results of empirical studies are not conclusive on the effects of odd pricing. Nearly all empirical studies have been conducted at the aggregate consumer level, thereby implicitly assuming that consumers respond to odd prices homogeneously. In this research, we analyze consumers' ...

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