Lynn, M., Flynn, S. M., & Helion, C. (2013). Do consumer prefer round prices? Evidence from pay-what-you-want decisions and self-pumped gasoline purchases [Electronic version]. Retrieved [insert date], from Cornell University, School of Hospitality Administration site:http://scholarship.sha.cornell.edu/articles/193
Do Consumer Prefer Round Prices? Evidence from Pay-What-You-Want Decisions and Self-Pumped Gasoline PurchasesArticles and Chapters
AbstractConsumers selected round prices and/or sales-totals at greater than chance levels across two different pay-what-you-want situations and one self-pumped gasoline purchase. The differences among these situations suggest that the tendency to select round prices/sales-totals reflects a subjective preference (or liking) for round prices and not a variety of other potential explanatory processes. Discussion focuses on possible economic consequences of this revealed preference for round prices as well as directions for future research.