Exploring the role of product attributes in 9-ending pricing strategies: A study on online retailing

Abstract

This study investigates the use of 9-ending pricing strategies in e-commerce by analyzing over 50,000 shoe prices. Using web scraping and a logit model from a German online retailer, the research assesses how product attributes influence the adoption of 9-ending prices. Key findings reveal that 9-ending prices are predominantly used for female and newly introduced products, as well as for items with lower and standard prices. The study also explores the effects of exclusivity and sustainability on pricing strategies, showing that their impact varies with different 9-ending price categories. Overall, this research demonstrates the complex nature of 9-ending pricing strategies, with the 9-zero removal model supporting all hypotheses, whereas the 99c and 95c models show differential effects. This extends our understanding of pricing tactics in online retail and highlights the significance of product attributes for marketing and sales strategies.