Empty space surrounding the price impacts price magnitude perceptions

Purpose Given the importance of prices in consumer decision-making, researchers have explored psychological pricing tactics that allow marketers to communicate a small price. This study aims to propose and validate a novel price presentation strategy using empty space around a price to create a perception of a small magnitude of the price. Design/methodology/approach Experiments were conducted to test whether surrounding a price with small (large) space results in a perception of a small (large) magnitude of the price. Study 1 (N = 280) used a within-subjects design to test expectation of numerical magnitude given shapes occupying varying amounts of space. Study 2 (N = 288) used an Implicit Association Test to examine the core theoretical argument regarding an association between surrounding space and price magnitude perceptions. Study 3 (pilot study: N = 110, main study: N = 503) used a between-subjects design to test the impact of surrounding empty space on perceived magnitude of the price. Findings Findings from the studies provide support for the argument that there exists an implicit association in the minds of consumers regarding space and numerical magnitude. Consumers (implicitly) associate a small surrounding space with a small price and a large surrounding space with a large price. Hence, when the space around a price is small, consumers assess the magnitude of the price to be small. Research limitations/implications The proposed theoretical arguments extend beyond existing explanations of how consumers process empty space contained in marketing stimuli. While a new effect is demonstrated, the fact that all studies were conducted in online settings remains a limitation of this research. Furthermore, the research does not use any neurophysiological methods of measurement. Practical implications While advancing theoretical understanding of the role of empty space in numerical cognition, the findings provide an easy-to-implement price presentation strategy for marketers. This strategy will help marketers communicate a lower price without the need for them to adjust the economic value of the price. Originality/value While there has been some research on how empty space in marketing stimuli such as advertisements and messages impacts consumer behavior, there is no research on how empty space influences consumers’ evaluation of numbers such as prices. To the best of the authors’ knowledge, this research is the first attempt at conceptualizing the influence of empty space on price magnitude judgments. A novel theoretical perspective of implicit association between space and numbers is proposed. This theoretical viewpoint diverges from other accounts found in extant research on empty space in marketing stimuli. Furthermore, the conceptualization is rigorously tested in four studies.