If You Think 9-Ending Prices Are Low, Think Again

The 9-ending prices, which comprise between 40% and 95% of retail are popular because shoppers perceive them as being low. We study whether this belief is justified using scanner price-data with more than 98-million observations from a large US grocery chain. find that prices higher non-9-ending by much 18%. Two factors explain why believe, mistakenly, First, we among sale indeed lower giving an aura Second, were other prices. Shoppers therefore learned to associate 9-endings low Over time, however, rose substantially, failed notice, the continuous use for promoting deep price cuts draws shoppers’ attention helps maintain preserve image bargain