Removing biases: The physical elements affecting left-digit price cognition
Removing biases: The physical elements affecting left-digit price cognition

Summary/Abstract: The purpose of this study is to explore the non-conscious factors which lead prices ending in nine to be perceived as larger than a price one dollar higher or diminishing. First, this occurs only when the leftmost digit of the price changes (e.g., $299 vs. $300) in which case the difference between the two prices being compared will be perceived to larger difference than if the leftmost digit of the price remains unchanged (e.g., $369 vs. $370) as found by Thomas and Morwitz (2005). Second, magnifying the font size of smaller price, increasing the number of digits and displaying the price vertically will diminish the perceived magnitude of the left-digit effect of nine-ending prices in comparison between the target price and a competing product price.

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