Price-Ending Strategies and Managerial Perspectives : A Reciprocal Phenomenon - Part I

Psychological pricing has been used by marketers for a long time to influence buying behaviour. It is the practice of structuring and presenting prices to appeal to consumers' emotions and to influence their decision-making processes. The odd-even psychological pricing strategy, a common practice in the marketplace, uses certain odd and even digits as price endings, which have the potential to influence consumers' perceptions of the price or the product. The current paper presents Part I of the Price-Endings and Consumer Behavior Model (PCBM) in order to provide a theoretical explanation for restaurateurs' use of the odd-even psychological pricing strategy. Based on a mail survey of fine-dining restaurants and quick-service restaurants the results support the concept that restaurant operators intentionally use the odd-even psychological pricing strategy to signal quality and value.