Feelings Versus Reason: Do Rounded Numbers Appeal To Our Emotions?

Consumers usually look for the lowest price when shopping for a product. But can prices sometimes just feel right? According to a new study in the Journal of Consumer Research, consumers are drawn to prices with rounded numbers when a purchase is motivated by feelings. "A rounded price ($100.00) encourages consumers to rely on feelings when evaluating products, while a non-rounded price ($98.76) encourages consumers to rely on reason. When a purchase is driven by feelings, rounded prices lead to a subjective experience of feeling right," write authors Monica Wadhwa (INSEAD, Singapore) and Kuangjie Zhang (Nanyang Technological University). read more

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