The impact of roundedness of price on service purchase intention depending on consumer’s service purchase state : feelings or cognition

Dissertant

Muayyadin, Sarah

Thesis advisor

Bachleda, Catherine

University

Al Akhawayn University

Faculty

The School of Business Administration

University Country

Morocco

Degree

Master

Degree Date

2016

English Abstract

To succeed in a business, companies need to have an effective pricing strategy.

Hence, in recent years, pricing strategy has become an increasingly important topic.

Prior research suggests that certain price numbers, including whether a price is rounded (e.g., $100.00) or not (e.g.

97.63) can influence consumer spending.

Prior research also suggests that some purchases are driven more by a consumer’s cognition and others are driven more by a consumer’s feelings.

In spite of this, there is almost no research that has explored whether the nature of the price (rounded or non-rounded) impacts purchase intention in feeling-based or cognition-based consumption decisions.

Thus, the purpose of this study is to extend the limited work available by examining the effect of roundedness of price on purchase intention taking into consideration the context of the consumption decision.

Data was gathered by means of a survey.

Respondents comprised 614Moroccan consumers.

Results indicated that there was a high impact of the nature of the price (rounded/non-rounded) of a service on the purchase intention; however, there was a non-significant impact of the consumers’ state (feeling/cognition) on the purchase intention.

The results showed also that there was a significant interaction between the state (cognition/feeling) of a consumer and the price (rounded/non-rounded) on service purchase intention

Main Subjects

Economics & Business Administration

No. of Pages

60

Table of Contents

• APA
• MLA
• AMA

Language

English

Data Type

Arab Theses

Record ID

BIM-775304