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The Odd-Ending Price Justification Effect: The Influence Of Price Endings On Hedonic And Utilitarian Consumption, Jungsil Choi, Yexin J. Li, Priyamvadha Rangan, Promothesh Chatterjee
The Odd-Ending Price Justification Effect: The Influence Of Price Endings On Hedonic And Utilitarian Consumption, Jungsil Choi, Yexin J. Li, Priyamvadha Rangan, Promothesh Chatterjee
Business Faculty Publications
This paper examines how odd-ending pricing influences consumption of hedonic and utilitarian products. Four studies test the hypothesis that the discount image associated with odd-ending prices reduces anticipated guilt and provides justification for hedonic consumption – an effect the authors label the odd-ending price justification effect (OPJE). Study 1 reveals people are more likely to choose hedonic over utilitarian products when they have odd-ending prices. Study 2 finds that the effect of odd-ending prices on hedonic consumption is mediated by guilt reduction. Study 3 reveals a boundary condition for the OPJE – purchase likelihood of hedonic products increases only when …
National And Store Brand Advertising Strategies, Jenyi Chen, Stanko Dimitrov
National And Store Brand Advertising Strategies, Jenyi Chen, Stanko Dimitrov
Business Faculty Publications
As the propensity of premium store brands (SBs) increases, retailers must consider different ways to drive sales besides promotional strategies. With this in mind, we consider a national brand (NB) and a (premium) SB co-existing in a market. Each brand has to decide the amount to invest in advertising its product and the prices to charge its customers, which can be determined separately or in unison. When either advertising expenditures or pricing decisions are set, each brand must keep in mind that the advertising efforts and revenue may spillover between the two brands, customers who intend to purchase the NB …