PULLMAN – A penny difference in price can make a significant difference in whether shoppers buy the more or less expensive item, a new study shows, and it mostly depends on the first digits in the prices.
Thus, when pens were priced at $2.00 and $3.99, 44 percent of study participants selected the higher-priced pen. But when the pens were priced at $1.99 and $4.00, only 18 percent of the participants chose the higher-priced pen.
Read more about this study, co-authored by David Sprott, associate dean in the WSU College of Business, in Science Daily ONLINE @ http://www.sciencedaily.com/releases/2009/02/090223221526.htm.