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The not-so-odd couple: Odd pricing in a luxury context

Fraccaro, Annalisa; Macé, Sandrine; Parguel, Béatrice (2021), The not-so-odd couple: Odd pricing in a luxury context, Journal of Business Research, 136, p. 356-365. 10.1016/j.jbusres.2021.07.048

Type
Article accepté pour publication ou publié
Date
2021
Journal name
Journal of Business Research
Volume
136
Publisher
Elsevier
Pages
356-365
Publication identifier
Metadata
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Author(s)
Fraccaro, Annalisa
Toulouse Business School [TBS]
Macé, Sandrine
ESCP-EAP [ESCP-EAP]
Parguel, Béatrice
Dauphine Recherches en Management [DRM]
Abstract (EN)
Two large samples of prices indicate that odd prices (i.e., prices just below a round number, for example €1495 vs. €1500) are used in the pricing of luxury products. An analysis of price endings suggests that luxury brand managers rely less on the drop-off mechanism than on the meaning mechanism, both of which have been used to show that odd prices influence consumers in the Fast-Moving Consumer Goods (FMCG) industry. Building on the odd-ending price justification effect, a conjoint analysis, indicating that a large proportion of luxury consumers prefer odd prices, supports the likely role of a guilt-relief mechanism in the pricing of luxury products.
Subjects / Keywords
Odd pricing; Luxury consumption; Justification effect; Conjoint analysis
JEL
L11 - Production, Pricing, and Market Structure; Size Distribution of Firms
D11 - Consumer Economics: Theory