Featured Research

from universities, journals, and other organizations

Sales Prices: How Right Digits Affect Perception of Discounts

Date:
September 1, 2007
Source:
University of Chicago Press Journals
Summary:
The amount of the discount may be less important than the numerical value of the farthest right digit, explains a new study. This newly identified visual distortion effect may influence how consumers look at sale prices. An item on sale for $211 from the original price of $222 is thought to be a better deal than an item on sale for $188 from an original price of $199, even though both discounts are $11.

The amount of the discount may be less important than the numerical value of the farthest right digit, explains a new study from the Journal of Consumer Research. Keith S. Coulter (Clark University) and Robin A. Coulter (University of Connecticut) are the first to identify a visual distortion effect that may influence how consumers look at sale prices.

Related Articles


The researchers show that "right-digit effect" influences consumer perception of sale prices. When the right digits are small, people perceive the discount to be larger than when the right digits are large. In other words, an item on sale for $211 from the original price of $222 is thought to be a better deal than an item on sale for $188 from an original price of $199, even though both discounts are $11.

In addition, the researchers find that when consumers view regular and sale prices with identical left digits, they perceive larger price discounts when the right digits are "small" -- less than 5 -- than when they are "large," or, greater than 5.

"When consumers examine multi-digit regular and sale prices in an advertisement, they read those prices from left-to-right. If the left (hundreds) digits are identical, consumers will pay less attention to those digits, and instead will focus primarily upon the disparate right-most (tens and units) digits in the price comparison process.," the authors explain.

"Our findings indicate that comparative price advertising can distort consumers' perceptions in ways unintended by the seller."

Reference: Keith S. Coulter and Robin A. Coulter. "Distortion of Price Discount Perceptions: The Right Digit Effect" Journal of Consumer Research: August 2007.


Story Source:

The above story is based on materials provided by University of Chicago Press Journals. Note: Materials may be edited for content and length.


Cite This Page:

University of Chicago Press Journals. "Sales Prices: How Right Digits Affect Perception of Discounts." ScienceDaily. ScienceDaily, 1 September 2007. <www.sciencedaily.com/releases/2007/08/070829122925.htm>.
University of Chicago Press Journals. (2007, September 1). Sales Prices: How Right Digits Affect Perception of Discounts. ScienceDaily. Retrieved March 30, 2015 from www.sciencedaily.com/releases/2007/08/070829122925.htm
University of Chicago Press Journals. "Sales Prices: How Right Digits Affect Perception of Discounts." ScienceDaily. www.sciencedaily.com/releases/2007/08/070829122925.htm (accessed March 30, 2015).

Share This


More From ScienceDaily



More Mind & Brain News

Monday, March 30, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

AAA: Distracted Driving a Serious Teen Problem

AAA: Distracted Driving a Serious Teen Problem

AP (Mar. 25, 2015) While distracted driving is not a new problem for teens, new research from the AAA Foundation for Traffic Safety says it&apos;s much more serious than previously thought. (March 25) Video provided by AP
Powered by NewsLook.com
Smartphone Use Changing Our Brain and Thumb Interaction, Say Researchers

Smartphone Use Changing Our Brain and Thumb Interaction, Say Researchers

Reuters - Innovations Video Online (Mar. 25, 2015) European researchers say our smartphone use offers scientists an ideal testing ground for human brain plasticity. Dr Ako Ghosh&apos;s team discovered that the brains and thumbs of smartphone users interact differently from those who use old-fashioned handsets. Jim Drury went to meet him. Video provided by Reuters
Powered by NewsLook.com
Many Don't Know They Have Alzheimer's, But Their Doctors Do

Many Don't Know They Have Alzheimer's, But Their Doctors Do

Newsy (Mar. 24, 2015) According to a new study by the Alzheimer&apos;s Association, more than half of those who have the degenerative brain disease aren&apos;t told by their doctors. Video provided by Newsy
Powered by NewsLook.com
A Quick 45-Minute Nap Can Improve Your Memory

A Quick 45-Minute Nap Can Improve Your Memory

Newsy (Mar. 23, 2015) Researchers found those who napped for 45 minutes to an hour before being tested on information recalled it five times better than those who didn&apos;t. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Health & Medicine

Mind & Brain

Living & Well

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins