Distortion of Price Discount Perceptions: The Right Digit Effect

@article{Coulter2007DistortionOP,
  title={Distortion of Price Discount Perceptions: The Right Digit Effect},
  author={Keith S. Coulter and Robin A. Coulter},
  journal={Journal of Consumer Research},
  year={2007},
  volume={34},
  pages={162-173}
}
We use four experiments to examine consumers' processing of comparative regular and sale price information in advertisements. Consistent with our hypothesized right digit effect, we find that, when consumers view regular and sale prices with identical left digits, they perceive larger price discounts when the right digits are "small" (i.e., less than 5) than when they are "large" (i.e., greater than 5). As a result, they may attribute greater value and increased purchase likelihood to higher… 

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