Price Endings of Online and Offline Retailers: Round and Just-Below Pricing

This study investigates and compares price-ending strategies employed by online and offline retailers. Analyzing 210,456 prices from retailers in US, South Korea, and China reveals significant differences in price-ending between online and offline retail formats. Online retailers exhibit a lower propensity to utilize round prices (e.g., ending in 0) and just-below prices (e.g., ending in 9) than offline retailers. This research discusses potential explanations for these observed discrepancies, focusing on the distinct price-setting environments and consumer purchasing behaviors of online and offline retail.