Table 1 shows the scores on individualism, uncertainty avoidance, and long-term orientation as well as price prevalence (in %) for each country. We were able to read out prices from 31 different countries. (4) The values for the three cultural dimensions individualism, uncertainty avoidance, and long-term orientation were taken from the “Hofstede-Insights” website Hofstede-Insights (n.d.). In terms of selecting countries, a set of a-priori criteria was established to reduce complexity of the data analysis and to ensure comparability.

It is well known that culture influences consumer behavior, but the impact of culture on pricing is less studied. Market to your customers before the competition. Responsive websites and digital marketing tailored to the automotive industry. As more customers are looking to start the car-buying process online, PrecisePrice can convert those clicks into store visits (bricks).

More Precise is More Price: How to Get the Highest Final Sale Price in Negotiation Sales

We recommend that you do not solely rely on the information presented and that you always read labels, warnings, and directions before using or consuming a product. Actual product packaging and materials may contain more and/or different information than that shown on our Web site. Never apply this product in a moving vehicle. Now you can create precise lines in one stroke, from thin to thick. Unravel Research – as one of the founders – thanks all the loyal writers for contributing to NewNeuromarketing! Setting the initial price deserves some strategic thinking since your first move is essential when enlarging your profit.

Precise Price

Understand the psychology behind their pricing. Analyzing competitors’ market share reveals trends. Conversely, if your price aligns closely with competitors, you’re signaling parity. Perhaps your product boasts superior features, exceptional customer service, or a more prestigious brand. Competitor analysis is akin to peering through a magnifying glass at your rivals. By carefully assessing costs and identifying the break-even point, businesses can set profitable price points and achieve financial success.

  • In a second step, these weblinks were then called up and the information about the price and about the country of origin of the product were read out and stored in our database.
  • High precise pricing (the last digit being 6) leads to the highest final sale price, getting your company the largest payoff!
  • This analysis helps identify potential risks and opportunities.
  • The approach also provides fast feedback loops, enabling teams to quickly validate the impact of their pricing actions and build trust in their decisions.
  • For present purposes, it seems warranted to mention a few of the most recent findings from pricing research.
  • Sellers within the same country share not only the cultural dimensions analyzed but also other factors, such as language, media, and broader cultural or institutional influences—all of which might (also) impact sellers’ price-ending decisions.
  • So for instance, if consumers compare $4.99 and $5.00, they compare both prices for as long as the spot a difference.

This means that one underlying mechanism might be responsible for the increase in one price-ending but that does not tell us why another price-ending decreases. Future research needs to find ways in which to connect the underlying mechanism with the increase (or decrease) of specific price-endings. This is in line with the hypotheses arguing that one price-ending is more prevalent than the other. Building on this, our analysis provides some limitations. We wish to argue that the specific meaning of a price is not (only) expressed in its very last digits but in the whole price structure.

Contrarily, long-term orientation showed no significant association with precise prices. To our knowledge, the present work offers the most comprehensive analysis on the impact of cultural differences on the prevalence of price endings to date. The values shown represent the probability predicted by the individual cultural dimensions that a price will be set as a precise price.

Increased efficiency

When a product is priced lower than its original cost, consumers feel like they’re getting a steal. By dynamically adjusting prices based on demand fluctuations, the hotel can optimize its revenue and profitability. By keeping a close eye on competitors’ prices, businesses can react swiftly and adjust their own prices to stay competitive in the market. By dynamically changing prices, businesses can effectively respond to market fluctuations and optimize their revenue.

Total Station categories

  • Wiser (formerly WisePricer)USAPrivately HeldWiser empowers brands and retailers to successfully compete in the ever-changing world of commerce.
  • Using a web scraping approach, we extracted 9,200 prices from 23 different countries from an international online marketplace.
  • This research largely focused on investigating the prevalence of the very last digit(s) of a price in different countries.
  • By leveraging such tools, businesses can make data-driven decisions to optimize prices effectively.
  • By carefully assessing costs and identifying the break-even point, businesses can set profitable price points and achieve financial success.

In reality, pricing changes don’t happen in a vacuum – many other factors influence sales. ClearDemand’s analysis reveals that increasing the price from $4.49 to $4.79 will optimize margin while respecting all these constraints. Figure 1 illustrates this relationship between pricing and expected unit sales. Our models continuously refine themselves using the grocer’s own data, becoming more precise as they gather more information. A precise, efficient approach builds trust among category managers and merchandisers, ensuring confident adoption of pricing recommendations. Reviews and mentions of publications, products, or services do not constitute endorsement or recommendation for purchase.

There are studies indicating that precise prices might be used to signal that a retailer is fair and competent (e.g., Loschelder et al., 2014). Contrary to just-below and round prices, precise prices have not been the focus of extant research—even though they account for nearly 25% of all prices (Troll et al., 2023). Further, research demonstrated that round prices tend to be used for higher quality products, while just-below prices are used for lower quality products (Stiving, 2000).

Customers are less likely to object when they see the value behind your pricing. A well-trained team can turn a price range into a powerful conversation starter. Be honest about what’s possible at each end of the spectrum—customers will appreciate the clarity. The lower end should reflect the most basic version of your product or service, while the higher end includes premium options or additional features. Your price range should be grounded in reality.

The most frequently studied countries are the U.S. and Asian countries. Research on cultural differences in consumer behavior is manifold (e.g., Belk et al., 1989; Belk, 1988; Belk et al., 1988). Research shows that consumers experience an information overload in an online context (Gao et al., 2012). For instance, in some cases, a round price might be a just-below price or a round price. In this case, consumers stop at the leftmost digit as both numbers are different.

Let’s dive into why a price range is the smarter approach and how it benefits both your customers and your business. Cultural superstitions and the price endings used in chinese advertising. (1989), Effects of odd pricing on price recall. Image communicated by the use of 99 endings in advertised prices. Patterns of price endings used in US and Japanese price advertising. High-low context cultures and price-ending llcs vs sole proprietorships vs. other business entities practices.

PrecisePrice digital retail solution

In addition, NoQ offers retailers a marketing platform where they can target their in-store customers effectively. Omnia RetailUnknownPrivately HeldSaaS allowing constant automated optimisation of pricing and online marketing for e-retailers. The platform combines patent-pending indoor location beacons with cloud-based marketing campaign management services and a software development kit that allows retailers to add an in-store mobile experience to any existing mobile app.

Dynamic Pricing models play a crucial role in determining the optimal price that maximizes sales and profits for businesses. However, Coca-Cola’s brand legacy allows it to command slightly higher prices. If your product is priced significantly higher or lower than similar offerings, you need solid reasons.

In a first step, we read out and saved the weblinks to the products web page. This enhances extant studies which looked at a few countries as they manually collected the data. To access this price-ending information from the online marketplace, we used a web scraping approach (Glez-Peña et al., 2014). We pre-registered all our hypotheses, our data collection procedure, and our analysis plan on the Open Science Framework OSF project (see text footnote 1). Additionally, there is empirical evidence suggesting that cultures with higher LTO have higher quality expectations (at least regarding the quality of websites).

Research found that round prices tend to be, overall, used for higher quality products, while just-below prices are used for lower quality products (Stiving, 2000). Additionally, research indicates that precise prices are much less prevalent compared to round and just-below prices (Troll et al., 2023), making precise prices stick out more. As mentioned above, research finds that those precise prices are more likely to be interpreted as well-thought out and as signaling higher competence as well as expertise of the retailer (Mason et al., 2013; Loschelder et al., 2016). If this is the case, retailers must counteract this perception with using price endings that consumers interpret as more trustworthy and as signaling higher quality.

If a price is perceived as well-thought-out, it is reasonable to assume that retailers took more time to come up with this price instead of using a standard price. This is why prices ending on nine are seldomly used (Macé, 2012) in that context. Precise prices are prices that are neither just below a round figure nor are they round in terms of ending in trailing zeros; thus, they form a distinct category. In contrast, just-below prices (also known as “odd prices” or “nine-ending prices”, e.g., Holdershaw et al., 1997; Macé, 2012) are prices that are “just below” these round figures (e.g., $2.99, $849). Round prices (at times also referred to as “even prices”, Wieseke et al., 2016) are prices that have been rounded to the nearest whole number (integer; e.g., $3.00) or whole payroll fraud power of ten (e.g., $850).

Another study found that participants were willing to pay more for a house when the seller used precise pricing (say $364,578) rather than round-number pricing (say $365,000). Researchers Manoj Thomas, Daniel H. Simon and Vrinda Kadiyali conducted many studies looking at the effects of precise pricing. “Just-below prices are linked to lower costs and ‘good deals,’” explained Soliman. There are six cultural dimensions that describe how a society’s culture impacts the values of its members and how these values affect behavior. “Given that culture significantly influences behavior, cognition, and emotion—why not price prevalence as well?