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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