Retail Price Endings and Consumers’ Buying Behavior: Evidence from an Emerging Economy
Retail Price Endings and Consumers’ Buying Behavior: Evidence from an Emerging Economy

Summary/Abstract: The practice of odd-even pricing is pervasive in Indian retail sector. This study empirically examined the impact of the pervasive use of the price-endings on consumers’ perception and buying behavior. A structured questionnaire using a 5-point Likert scale was used to do a mall-intercept survey in the capital cities of Delhi, West Bengal, Maharashtra, Tamil Nadu, Orissa, Bihar, Uttar Pradesh, Punjab, Madhya Pradesh, Jharkhand, and Karnataka. The collected responses were analyzed using structural equation modeling (SEM). The findings show that Indian consumers perceive prices like 999, 99.95, 349.99 as low and discount prices. Also, the prices like 1000, 100, 350 which are a little bit higher than 999, 99.95, 349.99 are perceived as high-prices. This price perception partially mediates consumers’ buying behavior. Most of the time, consumers purchase products priced with odd-ending because they think that the products are on sale or special offer also, the consumers who are brand conscious purchase the products priced with even-ending.

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