Rounded prices feel genuine: the impact of roundedness of price on seller evaluations

Abstract

We study whether people perceive prices as genuine depending on the roundedness (9-ending vs. rounded) of prices. We also explore how these price perceptions influence perceptions about the seller’s warmth. Our findings indicate that rounded prices are seen as more genuine than 9-ending prices, and sellers using rounded prices are perceived as warmer than those using 9-ending prices. Furthermore, we investigate how these differences impact consumer preference in the context of shopping for sacred or secular items. Findings indicate that when shopping for sacred items, people prefer the store using rounded prices, whereas when shopping for secular items, people prefer the store using 9-ending prices. We propose a novel insight revealing the relationship between price roundedness, warmth perception, and sacred values.