Convenience pricing in online retailing: Evidence from Amazon.com

Chenavaz, Régis; Drouard, Joeffrey; Escobar, Octavio; Karoubi, Bruno

doi:10.1016/j.econmod.2017.10.016

Cited by 8 publications

(7 citation statements)

References 19 publications

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“…Indeed, the shape of 0 satisfies Gestalt principles (Gestalt, a "form" in German, refers to characteristics of visually perceived images): It is simple, balanced, unified and coherent, making it easily accessible to cognitive processes (Treisman and Gelade 1980, Dehaene 1997, Schindler and Kirby 1997, and Palmer 1999. Chenavaz et al (2018) show that 0-ending prices are common and rigid in online markets, although online transactions are processed electronically. They explain their findings by assuming that shoppers are less attentive when shopping online compared to shopping in brick-and-mortar shops, making the cognitively accessible round prices more appealing.…”

Section: The Prevalence and Rigidity Of 0-ending Pricesmentioning

confidence: 99%

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Zero-ending prices, cognitive convenience, and price rigidity

Snir

Chen

Lévy

2022

Journal of Economic Behavior & Organization

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Section: The Prevalence and Rigidity Of 0-ending Pricesmentioning

confidence: 99%

“… Following Knotek (2008 andChenavaz et al (2018), the inconvenience score equals the smaller of the two scores obtained using (1) a greedy algorithm, and (2) an indirect greedy algorithm. The former calculates the minimum number of coins/bills needed to pay the exact price.…”

mentioning

confidence: 99%

Zero-ending prices, cognitive convenience, and price rigidity

Snir

Chen

Lévy

2022

Journal of Economic Behavior & Organization

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“…Acimovic and Groaves [27] found that the online retail supply chain is fundamentally different from the one that supports traditional physical stores, and verified the spillover effect of online retail. Chenavaz et al [28] analyzed the pricing strategy of online retail, and the research results emphasized the role of convenience, providing a new idea for online retail pricing.…”

Section: Research Theorymentioning

confidence: 99%

Research on the Spatial Features of the E-RetailingEconomic Linkages at County Level: A Case Study for Zhejiang Province, China

Shen

Qin

Xie

2019

IJGI

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Quantitatively evaluating the spatial characteristics of regional e-retailing economy linkages is of great significance for clarifying the spatial organization of regional e-retailing economies, and promoting regional coordinated development. However, due to the lack of study data, it is difficult toconduct quantitative research on these regional e-retailing economic linkages. Taking advantage of emerging new data sources, the depth and breadth of related research cannow be improved. This paper considers 64 county-level economic areas in Zhejiang Province as network nodes.A revised gravity model was used to measure the intensity of the e-retailing economic linkage in 2016,based upon the e-retailing data provided by the Department of Commerce of Zhejiang Province, China. On this basis, the geographic information system (GIS) tool, a model-potential method and a social network, were used to analyze the spatial features of the e-retail economic linkages at the countylevel in Zhejiang Province. The results showed that the spatial polarization of the economic linkage pattern emerged as prominent, with the overall difference and east-west gradient difference between counties proving significant. In addition, the major linking partners of most regions were relatively singular, and a problem of vulnerability in e-retail economic development was shown.Secondly, the southwest region of Zhejiang Province was an important obstacle in the integration process of regional e-retail economy, through analyzing the connection scope of e-retailing economics. Thirdly, the central Zhejiang subgroupwas a key plate connecting east and west, which plays an importantlinking role in the development of regional equalizationwhen we analyzethe cohesive subgroup pattern. Inspired by this, we hypothesized that a microscopic analysis results of Zhejiang Province could provide some enlightenment for the balanced and integrated development of China’s regional e-retailing economy.

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“…We study psychological prices in gasoline using French retail data. Psychological prices are prices with a trailing digit that induces particular consumer behavior (Aalto-Setälä and Halonen, 2004;Chenavaz et al, 2018;Karoubi and Chenavaz, 2015;Kleinsasser and Wagner, 2011;Knotek, 2011;Levy et al, 2004;Macé, 2012;Manning and Sprott, 2009;Wieseke et al, 2016). One argument for psychological prices is that prices that end in whole numbers, 0, are more expensive than those that end is odd numbers, 5 or 9 (Aalto-Setälä and Halonen, 2004;Kleinsasser and Wagner, 2011;Manning and Sprott, 2009).…”

Section: Introductionmentioning

confidence: 99%

Psychological prices at retail gasoline stations: the policies of 0-, 5-, and 9-ending prices

2021

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Psychological prices are known to impact consumer behavior and to depend on retailers' characteristics. Less understood is last digit pricing, especially in the context of retail gasoline stations. We study price endings in the French gasoline market with 11,471 gas stations and 4,775,300 prices for oil companies, supermarkets, and independent retailers during five years. Raw data suggest that 0-ending prices are more expensive. Yet, these last digit effects do not survive careful scrutiny focusing on the individual behavior/distribution of each gas station. Plus, 9-, 0-, and 5-ending prices are over-represented. Our evidence better informs administrative authorities investigating market irregularities and consumers interested in better deals.

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Convenience pricing in online retailing: Evidence from Amazon.com

Cited by 8 publications

References 19 publications

Zero-ending prices, cognitive convenience, and price rigidity

Zero-ending prices, cognitive convenience, and price rigidity

Research on the Spatial Features of the E-RetailingEconomic Linkages at County Level: A Case Study for Zhejiang Province, China

Psychological prices at retail gasoline stations: the policies of 0-, 5-, and 9-ending prices

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