Consumers are often drawn to certain products and services by
pricing techniques. Four versions of an Italian restaurant menu
were created to test the impact of price level and price type on
people’s perceptions of a restaurant. Two versions were inexpensive
while two were more expensive. Within each condition, one was odd
priced, with prices ending in .49 or .99, and the other was even
priced, with prices ending in .50 or .00. Participants reviewed one
menu and completed a survey, assessing the restaurant’s qualityimage
and value-image and their willingness to try it. In Experiment
1 there was no time limit, while in Experiment 2 participants were
allowed only one minute to review the menu which was then taken
away before they filled out the survey. In both studies, the analysis
revealed that people believed higher priced restaurants offered
higher quality but less value and that they were less likely to try
them. Odd pricing had no effect on any of the dependent measures,
highlighting the need for further investigation of the circumstances
under which this technique impacts consumers.
Consumers are often drawn to certain products and services bypricing techniques. Four versions of an Italian restaurant menuwere created to test the impact of price level and price type onpeople’s perceptions of a restaurant. Two versions were inexpensivewhile two were more expensive. Within each condition, one was oddpriced, with prices ending in .49 or .99, and the other was evenpriced, with prices ending in .50 or .00. Participants reviewed onemenu and completed a survey, assessing the restaurant’s qualityimageand value-image and their willingness to try it. In Experiment1 there was no time limit, while in Experiment 2 participants wereallowed only one minute to review the menu which was then takenaway before they filled out the survey. In both studies, the analysisrevealed that people believed higher priced restaurants offeredhigher quality but less value and that they were less likely to trythem. Odd pricing had no effect on any of the dependent measures,highlighting the need for further investigation of the circumstancesunder which this technique impacts consumers.
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