SFB 303 Discussion Paper No. B - 317

Author: Dahlhäuser, Heike
Title: Prominenz der Preise in einem Warenhauskatalog
Abstract: This paper is concerned with the influence of psychological aspects of the perception of numbers on pricing behavior. The wide spread usage of prices just below prominent numbers is attributed to the belief of the price setting subjects that many potential customers base their buying decisions on prominent numbers as upper price limits. The aim of the empirical investigation presented in this paper is to find the prominent price limits below which the catalog prices of a certain department store are kept. In addition the structure of the deductions from the prominent prices is examined. The prominence level of the prices is determined using a method developed by SELTEN. The proposed rule for rounding prices to prominent levels is tested and a simplified version is introduced.
Creation-Date: July 1995
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