The German-Jordanian University

Talal Abu-Ghazaleh Graduate School of Business

Research Methodology
MBA701
Dr. Khawla Obeidat

Assignment-1

Students names:
Haneen Abualhayjaa
Inas Jarrar
Khadija A. Kouider
Rasha Batshon

The effect of pricing strategy on consumers buying

behavior
H. Abualhayjaa, I. Jarrar, R. Batshon, K. A. Kouider
The German-Jordanian University Talal Abu-Ghazaleh Graduate School of
Business, Amman-Jordan

Prospectus research topic

How much does the pricing strategy affect consumers behavior?
Several researches were done to study how the digit demonstration can
result in a price being perceived as greater or less than its actual value
(Coulter, 2007). More researches findings suggest that consumers may
not process prices holistically. This, in turn, means that price endings are
likely to influence consumer price sensitivity and both retailer and
manufacturer profits (Liang & Kanetkar, 2006). Other researchers talked
about "Nine-ending price" strategy indicating that prices ending with
number nine have higher effect on consumer buying behavior (Guguen,
Jacob, Legoherel, & HGobo, 2009). On the other hand, others compared
between rounded and non-rounded prices in general and the results
showed differential impact of roundedness of price on product purchase
decision driven by cognition (Wadhwa, & Zhang, 2015).
After

reviewing

many

pertaining

researches

and

several

comparative experiments, there is still an isolated fact that has not been
explained in the literature regarding the most effective pricing strategy on

consumer behavior. Therefore, we are interested to study the effect of

unrounded price ends with number 9 and unrounded price ends with any
other number on consumers buying behavior in Amman.

References
Compeau, L. D., Grewal, D. & Chandrashekaran, R. (2005), Comparative
price

advertising:

believe it or not. Journal of Consumer Affairs, 36 (2), 284-294.

Coulter, K. S., Choi, P. & Monroe, K. B. (2012), Comma N' cents in pricing:
the

effects of auditory representation encoding on price

magnitude perceptions.

Journal of Consumer Psychology,

22 (3), 395-407.
Guguen, N., Jacob, C., Legoherel, P. & NGobo, P. (2009), Nine-ending
prices and consumer's behavior: a field study in a restaurant.
International Journal of Hospitality Management, 28 (1), 170-172.
Guido, G. & Peluso, A. (2004), Consumers' perception of odd-ending prices
with the

introduction of the euro. Journal of Product & Brand

Management, 13 (3), 200- 210.

Harris, C., & Bray, J. (2007), Price ending and consumer segmentation.
Journal of Product & Brand Management, 16 (3), 200-205.
Liang, J., & Kanetkar, V. (2006), Price ending: magic and math. Journal of
Product & Brand Management, 15 (6), 377-385.
Schnidler, R. M. & Kibarian, T. (2013), Image communicated by the use of
99

endings in advertised prices. Journal of Advertising,

30 (4), 95-99.
Schindler, R. M. & Kibarian, T. M. (1996), Increased consumer sales
response

though use of 99-ending prices. Journal of

Retailing, 72 (2), 187-199.

Schindler, R. M. (2009), Patterns of price ending used and Japanese price

advertising.
International Marketing Review, 26 (1), 17-29.
Schindler, R. M. (2006), The 99 price ending as a signal of low-price
appeal. Journal of Retailing, 82 (1), 71-77.
Wadhwa, M. & Zhang, K. (2015), This number just feels right: the impact
of

roundedness of price numver on product

evaluations. Journal of Consumer

Research, 41 (5), 1172-

1185.
Wagner, R. & Beinke, K. (2006), Identifying patterns of customer response
to price
(5), 341-351.

ending. Journal of Product & Brand Management, 15