Eastern Versus Western Culture Pricing

Strategy: Superstition, Lucky Numbers,

and Localization
Stanford A. Westjohn, Holger Roschk, and Peter Magnusson

ABSTRACT
Eastern versus Western culture pricing practices differ with respect to price endings; however, Eastern cultures are
increasingly influenced by Western multinational corporations. At the same time, increasing antiglobalization sentiment
suggests the use of localization strategies in these markets. The authors investigate whether pricing practices still differ in
this new environment, examine the role of superstition, and ask whether Western brands can benefit from localizing
pricing practices. They explore the use of lucky number price endings and consumer responses to such pricing strategies in
Singapore, an Eastern culture that is strongly exposed to Western multinational influence. Using a content analysis of
newspaper advertisements and two experiments, the authors find that superstitious pricing practices continue, especially
with high-priced items and brands of Eastern (vs. Western) origin. In the experimental studies, they find that superstitious
pricing has a positive effect on price attractiveness and that foreign brands that localize their prices benefit from a more
positive brand attitude.

Keywords: price endings, localization, adaptation, East–West cultural differences, superstitions

I
nternational marketers face pressure to localize the
marketing mix, of which price is a particularly important
component (Theodosiou and Katsikeas 2001). Local-
izing may influence perceptions of localness that can ben-
efit brands in terms of prestige in the local market and
even quality for some product categories (Özsomer 2012),
though it is global brands that are typically associated with
quality and prestige (e.g., Steenkamp 2014). Thus, attempts
to localize the marketing mix can be beneficial to brands.
Pressures to localize can be categorized in terms of firm and
management, product, industry, and foreign-market char-
acteristics (Tan and Sousa 2013). Pressures resulting from
market characteristics encompass cultural and customer
Stanford A. Westjohn (corresponding author) is Assistant Professor of
Marketing and International Business, Culverhouse College of Com-
merce, University of Alabama (e-mail: sawestjohn@cba.ua.edu). Holger
Roschk is Professor of Marketing, Alpen-Adria-Universität Klagenfurt
(e-mail: holger.roschk@aau.at). Peter Magnusson is Associate Professor
of International Marketing, Culverhouse College of Commerce, University
of Alabama (e-mail: pmagnusson@cba.ua.edu). The authors received
financial support from Catholic University of Eichstätt-Ingolstadt during
conduct of the second study. Bulent Menguc served as associate editor for
this article.
preferences (Cavusgil and Zou 1994) and can vary greatly.
Such environmental differences and perceptions of these
differences positively influence pricing adaptation (Sousa
and Bradley 2008). The challenge for international mar-
keting managers is in identifying and interpreting differ-
ences in cultural beliefs that are relevant to consumers and
have implications for localization (Kostova and Zaheer
1999).
With respect to localization of the marketing mix, an in-
teresting and understudied topic is the role of superstitious
beliefs. Superstitious beliefs are present in nearly all societies
(Vyse 2014). For example, according to results from a re-
cent Harris Poll (Corso 2014), 33% of Americans believe
that finding a penny is a sign of good luck, and 24% report
that it is bad luck for a groom to see the bride before the
wedding. Superstitious beliefs also extend to numbers, with
Journal of International Marketing
©2017, American Marketing Association
Ahead of Print
DOI: 10.1509/jim.16.0022
ISSN 1069-031X (print) 1547-7215 (electronic)

Eastern vs. Western Culture Pricing Strategy 1

23% of Americans believing that 7 is a lucky number, and
12% indicating that 13 is a sign of bad luck. In comparison,
in the Eastern culture of Singapore, superstitious beliefs
may be even more pervasive. Forty-seven percent of medi-
cal professionals indicated that anticipation of a good ap-
pointment foreshadowed a bad appointment, and 35%
admitted acting on their superstitions (Lim et al. 2007).
Belief in superstitions also extends to high-level managers in
Singapore, with one study finding that 64% have used feng
shui experts to create a harmonious “lucky” environment
(Tsang 2004).
Superstitious beliefs have been shown to influence consumer
judgment and decision making (Kramer and Block 2008,
Tsang 2004). In Eastern cultures, preferences for products
are based on, for example, lucky color or lucky number of
units per pack (Block and Kramer 2009). With respect to
lucky numbers, initial research has shown that marketers in
China prefer using lucky price endings (i.e., prices ending in
8) and avoid unlucky price endings (i.e., prices ending in 4)
(Simmons and Schindler 2003). Western multinational
corporations (MNCs) also sometimes follow this practice
(e.g., Apple’s website for China lists its iPhone and iPad in
prices ending in 8). However, it is unclear to what extent
Western MNCs localize their pricing on the basis of su-
perstition, whether they benefit from such localizing, and to
what extent superstition continues to play a role in Eastern
cultures that are increasingly exposed to Western multi-
national influence. Accordingly, we aim to answer the
following research questions: Are (un)lucky number price
endings practiced in Eastern cultures that are increasingly
influenced by Western MNCs? Do practices vary depending
on the item’s price and the brand’s Eastern versus Western
origin? In what contexts do (un)lucky price endings influ-
ence consumer responses to such price offers? Can for-
eign brands benefit from localizing their pricing strategy?
By attempting to answer these questions, we offer three
contributions.
First, whereas there is extensive evidence on the impact of
the price ending digit for Western cultures and countries
(e.g., El Sehity, Hoelzl, and Kirchler 2005; Schindler and
Kirby 1997), little empirical evidence is documented for
Eastern regions, rendering (un)lucky price endings an under-
researched topic in Eastern culture. More importantly, we
analyze pricing practices in Singapore, an Eastern culture
that has experienced strong influences from Western
MNCs. This context enables us to test the boundaries of
pricing practices. We chose Singapore because it has a rich
cultural diversity with elements of traditional Eastern and
Western cultures and dubs itself as a place where “east
meets west” (Singapore Cooperation Programme 2011).
2 Journal of International Marketing
According to Singapore’s 2010 census, approximately one-
third of the population practices Buddhism (33.3%) and
speaks Mandarin at home (35.6%) (Department of Sta-
tistics Singapore 2010). Yet Western elements are also
present. The second-largest religion is Christianity
(18.3%), and English is the second-most-spoken language
at home (32.3%). Thus, Singapore is a city-state where
Chinese culture is exposed to and integrated with Western
business practices. As a result, it offers a unique setting in
which to investigate whether superstitions have maintained
their salience with respect to pricing.
Our second contribution is the identification of two mod-
erators: price level and brand origin. Price level is important
because price adjustments made to conform to local su-
perstitions would represent a proportionally larger share of
overall price for low-price items compared with high-price
items. For example, a $2 price adjustment would have less
financial impact on a $298 product than an $8 product.
Contrary to prior research (Simmons and Schindler 2003),
our results indicate more use of lucky ending digits among
high-priced (vs. low-priced) items. As such, the results
provide a new perspective suggesting that (un)lucky pricing
is not practiced the same way across different cultural
settings. Furthermore, we introduce brand origin of the
price setter (Western vs. Eastern) as a moderator, which
identifies lower rates of superstitious pricing practices
among Western firms that have never been revealed
before. This finding highlights (1) the reluctance of
foreign marketing managers to localize on the basis of
superstition, (2) their intentional positioning of their
products as Western, or even perhaps (3) the difficulty of
identifying relevant cultural differences that have impli-
cations for localization.
Third, prior research has focused exclusively on marketing
practices, rendering consumer responses to (un)lucky pricing
practices a field yet to be explored. Therefore, as an im-
portant extension to previous investigations, we combine
the content analysis of advertisements with two consumer
experiments to better understand whether and how the use
of superstitious pricing is warranted. Analyzing consumer
responses to (un)lucky price endings represents a step for-
ward by providing the behavioral foundation from the
consumer’s perspective for marketer’s practices. Study 2
examines when (un)lucky price endings influence price
attractiveness, indicating an effect only when superstition
and involvement are high. Study 3 examines consumer
responses to lucky pricing practices by a foreign brand and
provides justification and boundary conditions based on
the effects on local image, brand attitude, and price attrac-
tiveness. As such, the findings offer guidance to international
marketing managers about the importance of identifying
relevant cultural differences such as superstition that have
implications for the localization of the marketing mix.
CONCEPTUAL DEVELOPMENT
Superstition
Superstition can be defined as the irrational belief that an
object, action, or circumstance that is not logically related
to a course of events influences its outcome (Damisch,
Stoberock, and Mussweiler 2010). Superstitious beliefs are
invoked either to bring good luck or to fend off bad luck
(Block and Kramer 2009) and can be considered cultural
(e.g., Friday the 13th, the Ghost Month) or personal
(e.g., wearing lucky accessories), with the focus of our
investigation being on the former. Marketplace impacts of
superstitious beliefs have been reported for both Eastern
and Western cultures. For instance, it is estimated that lost
business in the United States on Friday the 13th amounts to
$800–$900 million because of people’s fear of flying and
decreased daily business transactions (Palazzolo 2005).
In Taiwan, the seventh month of the Chinese lunar cal-
endar is the Ghost Month, which is considered so unlucky
that pregnant Taiwanese women schedule preemptive Cae-
sarean sections to avoid giving birth during this month (Lin,
Xirasagar, and Tung 2006).
The most influential theory explaining superstition is
Malinowski’s (1948) theory of the gap, which suggests that
superstitions serve to reduce anxiety in the face of un-
certainty. Thus, superstitious acts perform a cathartic
function by offering some sense of relief and control to the
people who engage in them. Other research has supported
this notion, finding that superstitious behavior is more
likely under conditions of uncertainty (e.g., Keinan 2002;
Padgett and Jorgenson 1982). Even people who believe
that events cannot be instrumentally controlled by their
actions—so called “half-believers”—often behave in a way
that is consistent with superstitious beliefs (Campbell
1996). This may be explained by the automatic tendency to
attend to potential negative outcomes and not tempt fate
(Risen and Gilovich 2008).
Superstitious behavior can also occur independent of the
belief in the efficacy of such behavior, as a means of gaining
a feeling of control. Control is a basic psychological mo-
tivator, and perceptions of control are associated with
positive psychological and physical outcomes (Case et al.
2004). Thus, even the feeling of control has value. Control
processes that instrumentally affect outcomes are consid-
ered primary control, while secondary process control is an
attempt to achieve the sense of control in the absence of
actual primary control (Rothbaum, Weisz, and Snyder
1982). Rothbaum, Weisz, and Snyder (1982) identify four
types of secondary control: predictive, illusory, vicarious
and interpretive. Illusory control is defined as the alignment
with luck to share in the power of a greater force, and it
applies in instances of superstitious behavior.
In other words, regardless of whether one is superstitious,
there is a tendency to act in accordance with superstitions to
avoid risk by taking some (albeit irrational) action and to
gain a feeling of control. Accordingly, conditions of risk and
uncertainty play an important role in the effect of super-
stition on consumer behavior, as superstition serves as a
source of information in the face of uncertainty (Tsang
2004). Of special relevance to international marketers are
differences in superstitions between Eastern and Western
cultures as they relate to the marketing mix. In this research,
we focus on cultural superstitions about numbers and how
they affect price setting.
Superstitious Numbers in Eastern and
Western Cultures
As part of cultural heritage, superstitious beliefs in both
Eastern and Western cultures include a wide variety of
objects and acts (Jahoda 1969). Western cultural super-
stitions include the four-leaf clover and rabbit’s foot as
symbols of luck, while examples from Eastern culture in-
clude the color red and feng shui (Ministry of Commerce
2004). Numbers have special meaning in both Eastern and
Western cultures as well. The digits 8 and 4 have special
meaning in Eastern cultures because they are near homo-
phones to the Chinese words for “lucky” and “death,”
respectively (Ministry of Commerce 2004). Likewise, the
numbers 7 and 13 have special meaning in Western cultures;
however, the origins of their meanings are less certain. The
number 13 could be a Biblical reference to the inauspicious
13th guest at the Last Supper, Judas Iscariot, who betrayed
Jesus. Similarly, according to Norse lore, a mischievous god,
Loki, brought evil to the world as the 13th guest at a dinner
party in Valhalla (Maranzani 2013). The significance of the
number 7 also has ties to religion (e.g., Judeo-Christian
teachings that God created the world in six days, then rested
on the seventh day). Thus, the nature of the origins of su-
perstitious numbers in Eastern and Western cultures seem
quite different.
As a result of these superstitious beliefs, these (un)lucky
numbers are (avoided) preferred in society. For example, in
Western cultures, hotels often number the 13th floor as the
14th floor instead. In Eastern cultures, research has found
Eastern vs. Western Culture Pricing Strategy 3
that consumers prefer a lucky versus unlucky number of
units per pack (Block and Kramer 2009). However, with
respect to price setting, (un)lucky numbers play a prominent
role in Eastern, but not Western, cultures, which we discuss
next.
Price Endings in Eastern and Western Cultures
The Role of Price Endings in Consumer Decision Making.
Price endings are important because of the complex role
price plays in the consumer decision-making process. In-
formation processing theory suggests that consumers use a
variety of choice strategies that combine the use of intrinsic
and extrinsic cues in any given choice situation (Olshavsky,
Aylesworth, and DeAnna 1995). The price of a product
serves as a stimulus in this process that can play an allocative
role (i.e., capturing the economic allocation [cost] of con-
sumption) or an informative role (e.g., signaling quality or
prestige) (Lichtenstein, Ridgway, and Netemeyer 1993;
Olshavsky, Aylesworth, and DeAnna 1995). From the
perspective of a contingent processing view, consumers may
employ a strategy that includes price in its informative
role, allocative role, or both (Olshavsky, Aylesworth, and
DeAnna 1995).
In the informative role, price serves as an extrinsic cue that
generates expectations about the product and can be used in
the decision-making process (Mitra 1995). As familiarity
with the product and availability of product attribute
information increase, consumers tend to rely less on the
price cue in evaluating the product (Mitra 1995; Rao and
Monroe 1988). However, superstitious beliefs with respect
to (un)lucky pricing may carry an inordinate amount of
weight when a price contains an (un)lucky number. We
argue that in the context of cultures that recognize super-
stitious numbers in pricing, the price cue plays an infor-
mative role that can nonconsciously activate superstitious
associations in the mind of the consumer (Devine 1989).
Differing Perspectives of Superstition. The literature on
price endings portrays a general tendency that Western
pricing practices are not guided by superstitious beliefs,
whereas Eastern practices are (Schindler 2009). In Western
cultures, the price endings 0, 5, and 9 dominate for reasons
apart from superstition (El Sehity, Hoelzl, and Kirchler
2005; Nguyen, Heeler, and Taran 2007; Schindler and
Kirby 1997). The endings 0 and 5 are preferred in the
decimal system because their high cognitive accessibility,
while the 9 ending is favored because it causes an un-
derestimation effect on the overall price (Schindler and
Kirby 1997). In contrast, in Eastern cultures there is an
overrepresentation of the digit 8 because of its association
4 Journal of International Marketing
with good fortune (Schindler 2009; Simmons and Schindler
2003).
The reason superstition may have a stronger effect on price
setting in Eastern than in Western cultures has been at-
tributed to different conceptualizations of humans’ relation
to nature (Kellert 2005; Kluckhohn and Strodtbeck 1961;
Simmons and Schindler 2003). In the Western Judeo-
Christian perspective, there is a tendency to view humans
as superior to nature, and as such, nature can be mastered
(Kellert 2005). This inclination treats nature as separate
from humanity (DeMooij 2010). In contrast, traditional
Eastern views portray a fundamental oneness that binds
humanity and nature (Kellert 2005). Eastern reverence for
nature is linked to Buddhism and Hinduism, which affirm a
human obligation to respect nature (DeMooij 2010; Kellert
2005). The respect for the supernatural as part of the
Eastern reverence for nature is perceived as a reason why
superstitious beliefs are more salient in Eastern price-setting
practices (Simmons and Schindler 2003). Thus, when
pricing includes superstitious numbers, the price cue takes
on an important informative role (i.e., foretelling one’s
fortune with respect to the product) rather than primarily an
allocative role, implying that (un)lucky numbers influence
attitudes toward the product, price, and even willingness
to buy.
Lucky 8 and Unlucky 4
The lucky and unlucky connotations of the numbers 8 and 4
stem from phonetic associations to prosperity (8) and death
(4) in Mandarin Chinese (Pellatt 2007). Prior research
has provided empirical evidence that the lucky 8 is over-
represented as a price ending digit in China (Nguyen,
Heeler, and Taran 2007; Simmons and Schindler 2003).
Regarding the unlucky 4 in China, prior findings are
mixed, with one study reporting an underrepresentation
of the digit 4 (Simmons and Schindler 2003) and one
study finding no underrepresentation of the unlucky 4 in
advertised prices (Nguyen, Heeler, and Taran 2007).
Although previous research has found evidence of super-
stitious effects of (un)lucky number on prices in Chinese
cultures, it is possible that Western influences, moderni-
zation, and globalization have reduced the use of super-
stitious pricing, particularly in Singapore, popularly termed
as the place where “east meets west.” While economic
development and Western influence may have had some
effect, there is reason to believe that a society’s broad
cultural heritage (e.g., Confucian) leaves an imprint that
endures despite modernization (Inglehart and Baker 2000).
Superstitious beliefs are likely to fall into the latter category
of the persistent imprint because they can be traced back
thousands of years and can be expected to continue to
thrive in modern times (Jahoda 1969; Vyse 2014).
Therefore, given the salience of Eastern values and Chinese
as spoken language, we posit that the superstitious
meanings of the numbers 4 and 8 translate into the
multicultural social life in Singapore. Thus, we predict the
following baseline hypothesis that replicates findings from
other Eastern societies:
H1: (a) The lucky digit 8 is overrepresented and (b) the
unlucky digit 4 is underrepresented among end-
ing digits of advertised prices in Singapore.
Price Level
Furthermore, we expect that the occurrence of the price-
ending digits of 8 and 4 to be influenced by contextual
factors. We predict that the tendency to prefer lucky and
avoid unlucky price endings is more pronounced among
high- (vs. low-) priced items for the following reasons. High-
priced items are often a proxy for more complex and high-
involvement buying decisions that include greater risk for
the buyer (Kotler and Armstrong 2012). Such risk may act
as a stressor and can be viewed as a mechanism to enhance
perceived control (Baronas and Louis 1988) by activating
the secondary control processes that leads to superstitious
behavior (Hamerman and Johar 2013).
Indeed, superstitious behavior is itself an attempt to control
the uncontrollable and tends to reduce anxiety (Malinowski
1948; Vyse 2014). This should be particularly important
for high-priced items, which are viewed as inherently
riskier. Accordingly, Tsang (2004) finds that Chinese
managers employ superstitious beliefs only when making
highly important decisions. Thus, when purchasing high-
priced items, the price cue plays an informative role that
reduces uncertainty and anxiety related to the purchase.
Consequently, there should be a greater propensity to
purchase items with lucky rather than unlucky price end-
ings. Conversely, low-price items involve less inherent risk,
thus reducing the need for luck and superstition. Another
consideration is that low-price items have a smaller price
window than high-price items. As such, price changes for
low-priced items represent a comparably larger share of
total price. Accordingly, price-setting practices of low-price
items may be more driven by economic necessities than
by superstitious associations. Therefore, we propose,
H2: The occurrence of the price-ending digit 8 (4)
is more (less) common among ending digits of
advertised prices for high- versus low-price items.
Eastern Versus Western Brand Origin
The second factor influencing the use of localized super-
stitious pricing is brand origin. Although anecdotal evi-
dence, such as the example of Apple’s pricing in China,
suggests that some Western firms localize pricing with re-
spect to superstitious numbers in Eastern culture, we expect
that firms with origins in Eastern cultures will be more likely
to follow this practice. The expected reluctance of Western
brands to adopt superstitious pricing may be influenced
by differences in how Eastern and Western cultures view
prices. The most popular ending digit in Western pricing is
the number 9 (Kreul 1982; Schindler and Kirby 1997),
which has been attributed to what is called “the drop-off
tendency” (Basu 1997; Brenner and Brenner 1982). The
drop-off tendency suggests that consumers are more con-
cerned with the digits to the left of the price than the digits
to the right. This suggests that if consumers “do not fully
consider the rightmost digits when evaluating a price, it is
in the interest of the seller to make these digits as high as
possible. Thus, managers tend to choose 9, the digit of
highest value” (Schindler 2009, p. 19). The effectiveness of 9
endings is particularly pronounced when it has the effect of
lowering the left-most digit (Schindler and Kirby 1997) or
when it conveys a discount or low-price appeal (Schindler
2009). In summary, Western pricing practices are based on
the idea that consumers will devote minimal processing
resources of the right-most digit (RMD).
In contrast, the use of superstitious numbers as the RMD
assumes that consumers will actively process this in-
formation and use it in an informative role to evaluate
the product. Consequently, although Western managers
recognize a need to locally adapt product offerings, the
adaptation of RMDs may not be considered a meaningful
adaptation because Western pricing models assume
limited processing of the RMD anyway. Furthermore, it
may be a deliberate attempt by the brand manager to
increase perceptions of globalness (Parsa and Hu 2004),
because some research has suggested positive outcomes
from perceived globalness (e.g., Davvetas, Sichtmann,
and Diamantopoulos 2015; Swoboda and Hirschmanna
2016). In these cases, the price cue would play an in-
formative role as part of a global consumer culture po-
sitioning effort that appeals to consumers with a strong
global identity (Westjohn, Singh, and Magnusson 2012)
or those exhibiting a global consumption orientation
(Westjohn et al. 2016). It is even possible that Western
managers may deliberately use unlucky price endings to
provoke cognitive dissonance in hopes of motivating
more information processing and elaboration of intrinsic
product attributes (Gelbrich, Roschk, and Gafeeva 2016;
Eastern vs. Western Culture Pricing Strategy 5
Petty, Unnava, and Strathman 1991). Combined, these ar-
guments suggest that superstitious pricing practices will be
more common for firms of Eastern versus Western origin.
H3: The occurrence of the price-ending digit 8 (4) is
more (less) common among ending digits of
advertised prices for firms of Eastern versus
Western origin.
STUDY 1: AD CONTENT ANALYSIS
Method, Data Collection, and Sample
Study 1 is a content analysis of advertised prices. Content
analyses have been widely employed in advertising research
in general (Eisend 2010) and in price-ending research in
particular (e.g., Nguyen, Heeler, and Taran 2007; Schindler
2009). As such, content analyses produce a representative
sample of managerial price-ending decisions (Schindler and
Kirby 1997). We chose to sample price advertisements from
newspapers to achieve consistency with prior investi-
gations (Schindler and Kirby 1997; Simmons and Schindler
2003). We gathered data from two newspapers, The Straits
Times (printed in English) and Lianhe Zaobao (printed in
Chinese). They are the most widely read daily newspapers
in Singapore, with circulations of approximately 449,200
and 172,500, respectively (Singapore Press Holdings
2013).
To rule out selection biases, we extracted every price ad-
vertisement found in both newspapers during the sampling
period. For advertisements containing more than one price,
we selected the most prominent single price. We determined
prominence by choosing the visually biggest price. If this
rule could not be applied, we followed reading direction
from left to right and up to down and used the price on the
left-most upper corner. Finally, we considered only adver-
tisements in a business-to-consumer setting, because we
assume that business-to-business purchase decisions are less
susceptible to cultural superstition. In summary, we col-
lected 875 price advertisements from The Straits Times (N =
708) and Lianhe Zaobao (N = 167) over a five-week period
during August and September in 2013. We selected fewer
prices from Lianhe Zaobao because this publication con-
tained relatively fewer price advertisements at the time of
the study. Nevertheless, the total sampled number of ad-
vertisements is comparable to previous investigations
(Schindler 2009; Simmons and Schindler 2003). Sampled
prices range from S$.31 to S$299,999, with the median at
S$249. The advertisements comprise a wide array of in-
dustries: 22.3% furniture, 16.1% consumer electron-
ics, 10.7% (air) travel service, 7.5% automotive, 7.4%
6 Journal of International Marketing
supermarket, 6.2% media and news, 5.4% telecommunica-
tion, 4.3% beauty and cosmetic, 3.2% restaurant, and 16.9%
other (e.g., health services, do-it-yourself, wine, education).
Variables
We recorded all prices in Arabic numerals as they appeared
in the price advertisements (e.g., S$168). Decimal digits
were included only when they actually appeared in the
advertisement (e.g., S$12.95). For each sampled price, the
ending digit is represented by two measures: the right-most
digit (RMD) and the right-most salient digit (RMSD). The
RMD measure uses the single right-most digit for repre-
senting the price-ending digit (e.g., the 5 in S$12.95). The
problem with the RMD measure is that it favors the zero as
the ending digit for large prices (e.g., S$144,800). Therefore,
the RMSD measure has been proposed (Simmons and
Schindler 2003). It assumes that a price’s right-most non-
zero digit is more salient to consumers than zeros that follow
to the right. Accordingly, the price-ending digit is repre-
sented by the first nonzero digit from the right (e.g., the digit
8 in S$144,800). In cases where there are no nonzero digits
among a price’s ending digits, as in S$100,000, then the
digit 0 represents the ending digit. Following Schindler
(2009), we use both measures to achieve consistency with
prior research.
We were interested in comparing Eastern- versus Western-
based brands; therefore, we created a dummy variable
based on the company’s home country (i.e., where it is
headquartered), which we constructed according to the
procedures outlined by Cohen et al. (2013). Eastern brands
included SingTel and Hyundai, while Western brands
included H&M and McDonalds. Finally, we use day
(weekday vs. weekend) and newspaper (The Strait Times
vs. Lianhe Zaobao) as control variables to account for
possible weekday and newspaper-related effects.
Analysis
All analyses were carried out for both RMDs and RMSDs.
To assess H1, we test the occurrence of digits 4 and 8 against
chance probability using binomial tests. Chance probability
is determined according to Simmons and Schindler (2003).
For the digit 8, as one out of ten digits, the chance prob-
ability equals 10%. However, the chance probability for the
digit 4 needs to be adapted in each situation depending
on the overrepresented digits. For instance, if one digit
is overrepresented with 55%, the other nine digits would
occur 45% of the time, leaving a probability of 5% for each.
Therefore, to avoid underrepresentation of some digits that
results from the overrepresentation of others, we consider a
digit underrepresented if it occurs less than chance would
predict among those digits that are not overrepresented.
To test H2, price level, and H3, brand origin (Eastern vs.
Western), we performed binary logistic regressions on digit
occurrence. We created dummy variables that represent the
occurrence of price ending 4 and price ending 8 in both the
RMD and RMSD distributions, resulting in four dependent
variables (4-RMD, 4-RMSD, 8-RMD, and 8-RMSD).
Using a hierarchical approach, control variables were
entered first, followed by the independent variables
(price and brand origin). We log-transformed price to
linearize the relationship between price and digit oc-
currence (Cohen et al. 2013). Brand origin was rep-
resented by a dummy variable distinguishing between
brands of Western versus Eastern origin. A significant
effect verifies that the digit occurrence depends on the
level of the independent variable.
Results
Occurrence of Digits 8 and 4. Figure 1 presents the RMD
and RMSD distribution. For both distributions, the oc-
currence of the digit 8 is significantly greater than the
10% chance expectation (pRMD < .01, pRMSD < .01). Thus,
H1a is supported for the lucky price ending 8. For testing
the unlucky price ending 4, we first excluded the over-
represented digits in the RMD (0, 5, 8, and 9) and RMSD (5,
8, and 9) distributions, which was approximately 90%
(RMD = 90.5%, RMSD = 86.4%) of all advertised prices in
Figure 1. RMD and RMSD Distribution in Percent
50
40
Percentage of Prices
30
20
15.9
10
1.6
0
0 1
Notes: Digits exceeding chance probability of 10% are overrepresented. The chance probability for remaining digits after removing overrepresented digits from each distribution is
1.58% for RMD and 1.94% for RMSD.
the sample. This leaves a resulting chance probability of the
digit 4 at 1.58% (9.5%/six digits) in the RMD distribution
and 1.94% (13.6%/seven digits) in the RMSD distribution.
As evident in Figure 1, the digit 4 was used 1.7% in the
RMD distribution and 2.2% in the RMSD distribution of
all advertised prices in the sample. Binomial tests confirm
that in both distributions, unlucky pricing is practiced as
often as chance probability would predict (pRMD = .43,
pRMSD = .45). Thus, H1b is not supported.
Price Level and Brand Origin. Binomial regression results
shown in Table 1 indicate that lucky pricing practices be-
come more likely with increasing price (bRMD = .25, p < .01;
bRMSD = .23, p < .01). Regarding the digit 4, the regression
coefficients are in the predicted direction but do not reach
significance (bRMD = −.17, p = .19; bRMSD = −.17, p = .13).
Thus, H2 receives support for digit 8, but not for digit 4.
With respect to brand origin, results indicate that the digit 8
is more likely to be used as a price ending in advertisements
of Eastern compared with Western companies (bRMD =
1.88, p < .01; bRMSD = 1.46, p < .01). No significant ef-
fect is observed for the digit 4 (bRMD = −8.82, p = .99;
bRMSD = −.73, p = .42). Thus, H3 is supported for the price
ending 8, but not the price ending 4.
With regard to control variables, the occurrence of digits 8
and 4 are independent from the newspaper from which the
price advertisements were sampled, while digit 8 appeared
slightly more often on weekdays when examining the RMD
(bRMD = −.38, p < .05). Thus, overrepresentation of lucky
RMD
41.1
RMSD 36.5
31.8
28.0
12.6
10.1
.9 1.1 1.6 1.8 1.4 2.5 1.7 2.2 1.6 2.3 2.4 3.0
2 3 4 5 6 7 8 9
Digit
Eastern vs. Western Culture Pricing Strategy 7

Table 1. Binary Logistic Regression Results
Digit 8
RMD RMSD RMD RMSD
Control Variables
Day (weekend = 1) −.38* −.19 −.24
Newspaper (Lianhe −.20 −.00 .76
Zaobao = 1)
Hypotheses
PriceLN, H2 .25** .23** −.17
Brand OriginWestern vs. 1.88** 1.46** −8.82
Eastern (Eastern = 1), H3
*p < .05.
**p < .01.
Notes: This table presents unstandardized regression coefficients.
pricing is consistent across both English- and Chinese-
language newspapers.
The results of Study 1 offer evidence of the practice of using
lucky number pricing in an Eastern culture heavily influ-
enced by Western MNCs, especially in the case of high-
priced items, and is more often used by companies of
Eastern versus Western culture origin. The moderating
effects for price level (i.e., involvement) and brand origin
also raise important questions about how consumers re-
spond to superstitious pricing. We attempt to answer these
questions in the subsequent experimental studies.
STUDY 2: EXPERIMENT
Having established the usage of lucky number pricing
with Study 1, in this study, we attempt to validate whether
the practice is warranted. In other words, although com-
panies often use lucky number pricing, do consumers ac-
tually respond differently to lucky versus unlucky pricing
schemes? The traditions of Eastern cultures, as described in
H1, supply the basic arguments for the practice of using
lucky numbers and avoiding unlucky numbers in the pricing
of products. Research examining the issue from a consumer
perspective has found that superstitious Taiwanese con-
sumers are more likely to purchase a product if it has a lucky
(vs. unlucky) color and are even willing to pay more for a
package containing a lucky (vs. unlucky) number of units
(Block and Kramer 2009).
Differences in evaluation of price offers are likely to be
strongest under conditions of high superstition and high
8 Journal of International Marketing
involvement. For this research, we view involvement as the
degree of personal relevance of the price offer (Zaichkowsky
1994). Under conditions of high involvement, consumers
Digit 4 pay greater attention to differences in products (Howard
and Sheth 1969) and tend to search longer and for more
information with respect to potential purchases (Clarke and
Belk 1979). This may suggest that intrinsic product attributes
−.54 play a greater role than the (un)lucky price cue; however, as
.85 an irrational belief, the superstitious belief may carry extra
weight compared with other product attributes. Further-
more, Tsang (2004) finds that Chinese managers employ
their superstitious beliefs only when making highly important
−.17
decisions, which would correspond with high involvement.
−.73
Involvement and superstition appear to have similar goals
in a purchase context—that is, to offer some sense of control.
Indeed, Block and Kramer (2009) find that superstitious
consumers develop stronger performance expectations of
products. Furthermore, superstitions serve not only to en-
hance perceived control but also to reduce anxiety (Vyse
2014). Thus,
H4: Consumers who are superstitious evaluate
(un)lucky price offers (less) more favorably
than nonsuperstitious consumers under high-
involvement, but not low-involvement, conditions.
Method
Participants and Procedure. We relied on experimental
design exposing the group of participants to one of two
price conditions: lucky versus unlucky. To remain consis-
tent with the advertisement content analysis data, we fo-
cused again on Singapore. Respondents belonging to a
Global Market Insite consumer research panel completed
an online survey and were screened for nationality and age,
ensuring that only Singapore citizens of at least 18 years of
age completed the survey. The resulting sample consisted of
227 responses (lucky: n = 112, unlucky: n = 115). The
demographic characteristics of the sample are broadly
representative, with a mean age of 35.1 years, and a
monthly household income between S$3,300 and S$9,399
for 56.8% of respondents. While women represent 59.5%
of respondents, they often make the majority of household
purchases and have even been purposely targeted for that
reason in other research (e.g., Alden, Steenkamp, and Batra
2006). Respondents are highly educated, with 58.6%
holding at least a Bachelor’s degree. Given that superstitious
beliefs are irrational, a highly educated sample makes for a
rigorous test.
Participants read a scenario in which they were told to
assume that they were going to purchase a new product.
They were given a brief description of the product, which
remained constant between the lucky and unlucky price
conditions. We employed four different consumer elec-
tronics products and accessories: a tablet computer, a digital
camera, a tablet screen protector, and a tablet case. We
included both core products and accessories as well as a
wide range of prices to ensure variance in involvement.
Table 2 provides a list of products, descriptions, and prices.
Each participant was presented with one of the four
products, accompanied by either a lucky (price ending 8) or
unlucky (price ending 4) price. After reading a description of
the product, respondents were asked to evaluate overall
price attractiveness. We measured their evaluation of the
price with a composite construct that assessed overall price
attractiveness, adapted from Janiszewski and Lichtenstein
(1999). Superstition (Carlson, Mowen, and Fang 2009) and
involvement (Zaichkowsky 1994) were also measured us-
ing existing scales. The Appendix reports items, loadings,
and reliability.
Validity and Reliability. To assess the validity and re-
liability of the latent constructs, we examined factor
loadings and Cronbach’s alphas. We conducted an
exploratory factor analysis in SPSS. All items loaded
significantly on their intended constructs, with the
factor structure accounting for 73% cumulative variance.
All item loadings exceeded .70, and Cronbach’s alpha
values ranged from .89 to .96, exceeding commonly ac-
cepted thresholds. Construct correlations appear in Table 3.
Analysis and Results
Using composite constructs based on the factor analysis, we
analyzed the hypothesized relationships in SPSS with the
Hayes (2013) PROCESS macro model 1. PROCESS cal-
culates 95% bias-corrected confidence intervals based on
10,000 bootstrap samples, the results of which appear in
Table 4. We controlled for the potential effects of de-
mographic variables by including age, education, income,
and gender as covariates. In examining the unstandardized
coefficients, we find that the interaction term, superstition ×
involvement, is significant for the lucky price group (b = .15,
t = 2.07), but not for the unlucky price group (b = −.04, t =
−.43). Thus, H4 is supported for lucky, but not unlucky,
pricing. In summary, the results indicate that when consumers
have high involvement with respect to the product, then
superstition is significant, but only for lucky price endings.

Table 2. Product Descriptions and Prices

Study 2 Price Study 3 Price

Product Description (Lucky/Unlucky) (Eastern/Western)

Tablet computer · Brand new model S$588/S$544 S$588/S$599

· Wi-Fi only model

· 16GB
Digital camera · 16.1 Megapixels S$288/S$244 S$288/S$299

· 5× Optical Zoom

· 2.7 inch LCD Monitor

· microSD/micro SDHC/micro SDXC

memory card compatible
Tablet case · Magnetic construction S$68/S$64 S$68/S$69

· Protects against scratches

· Case can also be used as a stand for the tablet

· Available in many colors

Screen protector · Clear protective film produces no haziness,
less glare and no bubbles
S$3.88/S$3.44 S$3.88/S$3.99

· Shields and protects your screen from unwanted

scratches

· Easy to apply and easily removable without

leaving residue

Eastern vs. Western Culture Pricing Strategy 9


Table 3. Construct Correlations Study 2 and Study 3
1 2 3 4 5 6
1. Superstition
2. Involvement .07
3. Price attractiveness .09 .34**
4. Eastern 8 pricing .10
5. Local price image .69** .20*
6. Cosmopolitanism .41** −.11 .32**
7. Brand attitude .77** .16 .69** .33**
*p < .05.
**p < .01.
Notes: Study 2 included constructs 1–3. Study 3 included constructs 3–7.
Findings from Study 2 lend support to the lucky number
pricing strategies as evidenced in Study 1. Consumers in
Singapore perceive the use of lucky number 8 as a salient
attribute in determining overall price attractiveness, pro-
vided that they are in a high-involvement context. Thus,
price seems to have played an informative role in the
consumer’s decision-making process. Age, gender, educa-
tion, and income were included in the model as controls,
but only income was significantly related to price attrac-
tiveness (b = −.437, t = 2.98) in the lucky price condition.
STUDY 3: EXPERIMENT
Study 2 confirmed that superstitious consumers in a high-
involvement context consider lucky number pricing a sa-
lient attribute with respect to price attractiveness. However,
the experiment included only products that were unbranded
and of unknown origin. Relevant questions for interna-
tional marketers are whether the pricing effects apply to
foreign brands and whether pricing can be used in an in-
formative role to signal brand localization efforts and en-
hance brand attitude by emphasizing a more “local” image.
This seems particularly important given that the results
from the content analysis offer evidence that Western firms
use lucky number pricing less often than Eastern firms.
However, our findings from Study 1 are unable to answer
whether Western firms that localize their pricing ex-
perience additional benefits in terms of a perceived
local image and brand attitude. We examine this ques-
tion in Study 3.
According to Ger (1999), positioning based on the precept
of localness can be an effective strategy for competing with
10 Journal of International Marketing
global firms. Recent research has suggested that increased
industry risk decreases the amount of marketing localiza-
tion due to the fear of losing market-specific investments,
despite finding that localization enhances performance (Liu,
Gao, et al. 2016). The effectiveness of localization has
been highlighted in recent research identifying how for-
eign luxury retailers have used strategic adaptation to raise
brand awareness and build loyalty in China (Liu, Perry,
et al. 2016). This is especially relevant because of the recent
pushback against globalization (Wolf 2016) and the rec-
ommendation by General Electric chief executive officer
Jeffrey Immelt to localize in response to such pushback
(Murray 2016). Thus, with Study 3 we investigate whether
the use of a localized Eastern pricing strategy (i.e., prices
ending in 8) by a foreign brand enhances the brand’s
perceived local image and subsequent brand attitude and
price attractiveness. In addition, we examine the role of
cosmopolitanism as a moderator.
We argue that just as price can play an informative role with
respect to signaling the good or bad fortune related to the
product, it could also signal the firm’s desire and efforts
to position the brand as more local rather than foreign.
Indeed, the use of language, aesthetic style, and story
themes are tools used to develop a local consumer cul-
ture positioning (Alden, Steenkamp, and Batra 1999).
Thus, because price can play an informative role, it too
could contribute to the development of a perceived local
image. Furthermore, a perceived local image, regardless
of brand origin, has been found to result in several
positive brand outcomes; for example, brand prestige
and purchase intentions (Steenkamp, Batra, and Alden
2003), and retail patronage (Swoboda, Pennemann, and
Taube 2012).
Malinowski’s (1948) theory on the anxiety-reducing effects
of superstition would explain the relationship between the
localized 8 price ending and price attractiveness. However,
it would not necessarily explain the relationship with brand
attitude. Instead, social identity theory (Tajfel 1978) sug-
gests that people belonging to a social category, such as a
nation, adopt strategies to maintain their in-group status.
Adopting positive attitudes toward brands perceived as
more local would be consistent with social identity theory.
Thus, we propose that the Eastern 8 price ending will be
positively related to both price attractiveness and attitude
toward the brand. We expect both of these effects to be
present to the extent that the Eastern pricing enhances the
brand’s perceived local image. Thus, we expect perceived
local image to mediate the relationship between the local-
ized pricing and the outcomes of brand attitude and price
attractiveness.
Table 4. Study 2 Results and Bias-Corrected Bootstrap Confidence Intervals

Path Coefficient t-Value LLCI ULCI

Lucky Price Condition (n = 112)

Superstition → Price attractiveness −.60 −1.61 −1.3454 .1363
Involvement → Price attractiveness −.14 −.51 −.6818 .4039
Superstition × Involvement → Price attractiveness .15* 2.07 .0068 .3016

Unlucky Price Condition (n = 115)

Superstition → Price attractiveness .24 .51 −.6968 1.1789
Involvement → Price attractiveness .66 1.93 −.0188 1.3418
Superstition × Involvement → Price attractiveness −.04 −.43 −.2256 .1454

*p < .05.
Notes: LLCI = lower limit confidence interval; ULCI = upper limit confidence interval. We calculated 95% bias-corrected bootstrap confidence intervals using Hayes’s (2013)
PROCESS macro based on 10,000 bootstrap samples. Age, gender, education, and income were included in the model as controls. Only income was significantly related to
price attractiveness (b = −.43, t = 2.98) in the lucky price condition.

H5: For a foreign brand, a localized Eastern pricing
strategy has a positive effect on (a) brand attitude
and (b) price attractiveness, mediated by the
brand’s perceived local image.
Although perceived local image should have a positive
relationship with brand attitude, we expect the relationship
to be attenuated by a person’s degree of cosmopolitanism.
Hannerz (1990) describes cosmopolitanism as an orienta-
tion of openness toward divergent cultural experiences.
Such an orientation suggests an affinity for the novel and the
foreign, which would dampen the relationship between
perceived local image and brand attitude. Similar effects
have been reported in Swoboda, Pennemann, and Taube
(2012), in which the effect of perceived brand localness on
retail patronage was weaker for consumers with a strong
global identity, and in Westjohn et al. (2016), in which
people with a local consumption orientation favored lo-
calized positioning of both foreign and domestic brands.
Because price attractiveness is driven by superstition, we do
not expect any influence of cosmopolitanism on the local
image–price attractiveness relationship. Thus, we hypoth-
esize that the greater a person’s cosmopolitanism, the
weaker the effect of perceived local image on brand attitude.
H6: Cosmopolitanism weakens the relationship be-
tween the brand’s perceived local image and
brand attitude.
market research firm as in Study 2. The resulting sample
consisted of 132 responses. Average age of respondents
was 37.4 years, and 49.2% of respondents were female.
Monthly household income ranged from S$3,300 to S
$9,399 for 50.7% of respondents, and 62.1% had at least a
Bachelor’s degree. Participants read the same scenarios
using the same products and descriptions, with the fol-
lowing exceptions. First, instead of presenting lucky and
unlucky prices, we presented Eastern pricing (i.e., lucky 8
price ending) and Western pricing (i.e., 9 price ending).
Table 2 presents descriptions and prices. Second, par-
ticipants were informed that the product was offered by
a foreign company with a fictitious brand name, ATL.
After reading the description, respondents evaluated the
brand’s local Singaporean image, answered items to as-
sess their level of cosmopolitanism, indicated their atti-
tude toward the brand, and evaluated the product’s price
attractiveness.
Validity and Reliability. We examined factor loadings and
Cronbach’s alphas (see the Appendix). An exploratory
factor analysis revealed that all items loaded significantly on
their intended constructs with the factor structure ac-
counting for 83% cumulative variance. All item loadings
exceeded .70, and Cronbach’s alpha values ranged from .93
to .96. Construct correlations appear in Table 3.
Analysis and Results

Method We created composite constructs for cosmopolitanism and

perceived local image of the brand. Using the Hayes (2013)
Participants and Procedure. We collected another sam- PROCESS macro model 14, we analyzed the effect of
ple from Singapore using Global Market Insite, the same Eastern lucky number pricing on brand attitude, mediated

Eastern vs. Western Culture Pricing Strategy 11

by the perceived local image of the brand, and assessed
whether cosmopolitanism moderated the relationship be-
tween perceived local image and brand attitude. We in-
cluded age, education, income, and gender as covariates
and report the results in Table 5. In examining the un-
standardized coefficients, we find that the Eastern pricing
strategy has a significant direct effect on perceived local
image (b = .61, t = 2.44) and a significant indirect effect
on both brand attitude (b = .39, t = 2.34) and price at-
tractiveness (b = .48, t = 2.32). Thus, H5a and H5b are
supported. In examining the interaction, we find that cos-
mopolitanism significantly moderates perceived local im-
age’s effect on brand attitude (b = −.12, t = −2.08),
indicating that increasing cosmopolitanism weakens the
effect on brand attitude. Thus, H6 is supported.
DISCUSSION
Theoretical Implications
Overrepresentation of the Digit 8. This investigation
provides three key contributions that shed light on how
superstitions affect price-setting practices and subsequent
consumer responses in an Eastern culture heavily influenced
by Western MNCs. First, Study 1 provides evidence that the
digit 8 is overrepresented as a price ending among price ads
sampled from two major Singaporean newspapers. Singa-
pore offers a novel test given both the increasing influence
of Western MNCs in many Eastern cultures and the large
population of Chinese who live in non-Chinese cultures,
with an estimated number of more than 50 million (Wang
2012). In contrast to older studies, this study finds evi-
dence of an evolving pattern of price endings. In Singa-
pore, there is an overrepresentation of not only prices
ending in 8 (31.8%) but also prices ending in 9 (41.1%).
The Singaporean pattern is noteworthy because it reflects
the unique cultural diversity of the city-state, which is
marked by the parallel existence of traditional Eastern
and Western values. In this light, the lucky price ending 8
can be interpreted as an element of traditional Eastern
culture, which communicates a superstitious belief rooted
in Chinese language. In contrast, the price ending 9 can
be interpreted as an element of Western culture for its
wide usage throughout Europe and North America. In
line with this notion, Parsa and Hu (2004) report that
the price ending 9 is actually perceived as a way to
communicate Westernization in Taiwanese quick-service
restaurants. Overrepresentation of the digit 8 was pres-
ent in the Chinese-language newspaper as well as the
English-language newspaper. Therefore, the lucky num-
ber effect seems to be strong because it persists in a non-
Chinese-language context.
12 Journal of International Marketing
Price Level and Brand Origin. A second contribution
emerges from the results of Study 1, which provides new
insights on the moderating role of price level and the brand
origin of the price setter. Regarding price level, our results
indicate that superstitious pricing practices become more
pronounced with increasing price. It can be assumed that
high prices suggest greater purchase involvement and higher
risk, which suggest a need for the consumer to feel that
(s)he is in control. As such, pricing practices in Singapore
align with other empirical evidence showing that supersti-
tious consumer responses are driven by perceived control
(Hamerman and Johar 2013) and involvement (Study 2).
Thus, it seems appropriate that Study 2 found a lack of
lucky number price endings for low-price items. A sec-
ondary explanation may also be that there is a smaller price
window for low-price items. Price increases or decreases
made to reach a desirable lucky number price ending
represent a comparably larger share of total price for low-
price items. As a result, economic necessity rather than
superstition may drive the price-setting practices for low-
price items.
Notably, Simmons and Schindler (2003) report that
lucky pricing practices in China are more likely among
low- rather than high-priced items. The contradictory
patterns between China and Singapore may be due to
differences in economic conditions between the coun-
tries. The lower incomes of Chinese households in
general presumably translate to more purchases of
goods at lower prices.
Regarding the brand origin of the price setter, Study 1’s
results showed an imbalance between practices of Western
versus Eastern firms not evidenced before. In particular,
Western firms adopt lucky pricing considerably less often
compared with the Singaporean and other Eastern-culture
peers marketing in Singapore. These results are in line with
our expectations that foreign Western firms are reluctant
to adopt superstitious pricing perhaps because of the un-
familiarity with the local cultural environment and the
assumed limited processing of the RMDs (Basu 1997;
Zaheer 1995) or because of a deliberate attempt to use
the price cue in an informative role, signaling the
brand’s Western origin.
Consumer Responses to Lucky Pricing. The results of
experimental Studies 2 and 3 add in a third way to current
knowledge. Prior research has been limited to descriptive
findings on the prevalence of practiced price endings.
Therefore, Studies 2 and 3 aim to contribute to the literature
by providing insights into contextual effects of the salience
of superstitious price endings and investigating whether
Table 5. Study 3 Results and Bias-Corrected Bootstrap Confidence Intervals

Path
Coefficient t-Value LLCI ULCI

Eastern 8 pricing → Local image .61* 2.44 .1171 1.1150

Local image → Brand attitude 1.27*** 3.85 .6153 1.9191
Local image → Price attractiveness 1.21** 2.92 .3899 2.0369
Local image × Cosmopolitanism → Brand attitude −.12* −2.08 −.2318 −.0059
Local image × Cosmopolitanism → Price attractiveness −.08 −1.11 −.2230 .0624
Eastern 8 pricing → Local image → Brand attitude .39* 2.34 .0868 .7345
Eastern 8 pricing → Local image → Price attractiveness .48* 2.32 .0998 .9163

*p < .05.
**p < .01.
***p < .001.
Notes: LLCI = lower limit confidence interval; ULCI = upper limit confidence interval. We calculated 95% bias corrected bootstrap confidence intervals using
Hayes’s (2013) PROCESS macro based on 10,000 bootstrap samples. Age, gender, education, and income were included in the model as controls, with none being
significant.

firms can use price in an informative role to signal locali-
zation efforts to improve brand attitude.
The results indicate that lucky number price endings make
a difference in consumer responses when the price offer is
of high personal relevance (high involvement) and when
respondents hold superstitious beliefs (high superstition).
The moderating effect of involvement raises interesting
questions with respect to the decision-making processes
consumers use. In high-involvement conditions, consumers
are more likely to consider many attributes and simulta-
neously combine them to form an overall evaluation, in
which positive attributes compensate for negative attri-
butes (Gensch and Javalgi 1987). This sort of compensatory
decision-making process suggests that the lucky price cue
would be one of several attributes evaluated. However, in a
compensatory decision-making process, not all attributes
are equally weighted. Although we did not measure attri-
bute weights in this research, the findings imply that lucky
price endings carried substantial weight. Because the sa-
lience of superstitious numbers in prices are culture specific,
we expect that the substantial weighting given to the lucky
price ending is also culture specific.
Localizing with Superstitious Pricing. Study 3 also re-
vealed that foreign firms can use price in its informative
role to create a more localized image of the brand and
subsequently improve attitude toward the brand. While
brands of nonlocal origin, especially those from Western
cultures, can appeal more to consumers in certain contexts
(e.g., nonethnocentric consumers from developing countries
who admire the lifestyles in advanced economies; Batra
et al. 2000), it is also possible to improve attitude toward the
brand through localization. This research evidences that
localizing pricing practices to fit cultural superstitions en-
hances consumer attitudes toward the brand indirectly
through the brand’s perceived local image. Other emerging
research has suggested that the importance of a local versus
global image varies by product category (Davvetas and
Diamantopoulos 2016). However, as a boundary condi-
tion, the findings further indicate that high degrees of
cosmopolitanism among consumers dampen the positive
localization effect on brand attitude. This implies that firms
specifically targeting cosmopolitan-minded consumers may
have more success with a Western price ending in 9, which
would signal foreignness, whereas firms wanting to appeal
to a more tradition-minded segment may have more success
with an Eastern price ending in 8. In summary, pricing
strategy should support the overall positioning strategy of
the firm.
Managerial Implications
Pricing policy is particularly important for international
marketing managers because it is the only source of revenue
in the marketing mix. Results show that lucky pricing is
practiced by managers in Singapore (Study 1) and that
Singaporean consumers favor number 8 as a price ending
(Studies 2 and 3), rendering superstitious beliefs a sa-
lient external cultural pressure to localize. The independent

Eastern vs. Western Culture Pricing Strategy 13

occurrence of both patterns necessitates the question about
direction of causation: Do practices mirror or strengthen
consumers’ superstitious beliefs? According to current evi-
dence, management practices accommodate consumer be-
liefs rather than reinforce them (Eisend 2010). Following
this direction of causation, managers may reflect cultural
beliefs and engage in superstitious practices not because of
their own fervent belief in them, but for the following two
reasons. First, international marketing managers would
usually prefer not to alienate segments of potential buyers.
Thus, if a segment of consumers finds price endings as in-
formative cues that predict future experience with the
product, it makes logical sense to accommodate these be-
liefs, so long as there are no other negative trade-offs as
a result of the superstitious price ending. In this sense,
managers are making instrumental use of superstition.
Second, managers may not want to tempt fate. In other
words, they may be so-called half-believers who perform
superstitious acts to hedge against bad fortune (Campbell
1996; Tsang 2004).
The present results further indicate that the lucky number 8
pricing phenomenon persists in a context where the Eastern
culture is greatly exposed to and integrated with modern
business practices of Western MNCs. This finding, in
conjunction with the fact that the superstitious meanings
are primarily carried by language, suggests that Chinese-
speaking consumers’ response to numeric price cues should
be similar in the Chinese diaspora worldwide. Thus,
managers may find large enough communities of the
Chinese diaspora around the world to justify the use of
prices ending in the lucky 8. If we switch perspectives and
interpret findings from a Chinese point of view, lucky
number pricing may be employed to stand out from the
traditional Western pricing schemes and may help com-
municate an authentic Chinese image within a non-Chinese
business environment.
Finally, in Study 1, we noted that Western firms are less
likely to use superstitious pricing compared with their
Eastern counterparts. Yet, in Study 3, we found that foreign
firms that do use superstitious pricing (compared with the
Western 9 ending) are perceived more favorably, mediated
by perceived local image. This raises questions as to why
Western firms are less likely to use superstitious pricing.
Assuming that this difference is not due to a lack of cultural
awareness, there must be a legitimate reason for not re-
sponding to the pressure to localize.
We can only speculate, but it is possible that some managers
use such a strategy as a deliberate provocation of cog-
nitive dissonance to increase the amount of information-
14 Journal of International Marketing
processing effort, thereby promoting more reasoned
brand choice and purchasing behavior. Moreover, a
counterintuitive approach to pricing using unlucky num-
bers seems acceptable if the overall marketing goal is
to position the brand as “nonlocal.” There has been some
evidence to suggest that consumers from emerging mar-
kets sometimes assign greater value to Western brands
(Batra et al. 2000) and the use of the number 9 in the price
ending can be perceived as a symbol to increase the
brand’s Western image. The results may also be inter-
preted as a reflection that Western companies are less
bound by cultural ties than their Eastern counterparts,
providing them with more leeway for their “cultural”
positioning in the target market. It may simply not be a
cultural imperative for foreign brands to follow the local
superstitious beliefs.
Regardless of the reason why Western managers have been
more reluctant to use superstitious pricing, the findings
from Study 3 provide a cautionary tale. The foreign firms
that do use superstitious pricing benefit from a higher
perceived local image, which leads to more favorable
brand evaluations.
LIMITATIONS AND FUTURE RESEARCH
DIRECTIONS
We experimentally tested the consumer responses to lucky
number pricing using only product descriptions. In addi-
tion, the number of products evaluated were limited, and
services were not included. Whereas this method has been
used successfully before, one fruitful way to expand this
study with greater external validity would be to examine
actual product purchases. Perhaps a wide-scale analysis of
actual purchases in Singapore based on checkout scanner
data could be used as data input for analysis. For example, a
comparison of sales volumes between similar products with
different price endings (lucky, unlucky, or neither) or the
same product over time with different price endings would
provide further insights into how superstitious pricing af-
fects buying behaviors. Furthermore, this study focused
on product prices. Further research may also want to ex-
amine how superstitious pricing affects service attractive-
ness, whereby human interaction is often more direct
and central to the transaction (Wilson et al. 2012).
Whereas the relative importance of lucky numbers can be
inferred from the results, it is unclear whether consumers
would eliminate a brand from consideration solely because
it has an unlucky price ending. To address this, further
research should incorporate additional outcome variables
beyond the price attractiveness outcome, which we used in
Study 2. For example, future studies could be designed as a
choice scenario with a variety of attributes and alterna-
tives (compensatory decision making), some of which would
include an unlucky price ending.
Studies 2 and 3 controlled for different demographic var-
iables. Results were largely nonsignificant, mirroring the
limited explanatory power of demographics in prior re-
search (Vyse 2014). Therefore, we suggest that future
studies consider psychographic differences. For instance, it
seems likely that neuroticism, or the tendency to experience
negative emotions such as anxiety, is probably related to
superstition, which serves to reduce anxiety in situations
marked by unpredictability and uncertainty. Likewise,
thinking styles appear to account for differing irra-
tional beliefs over sociodemographic factors (Aarnio
and Lindeman 2005).
Given the combined evidence from this study and other
similar studies, the results are generalizable broadly within
Singapore and to other cultural communities in Asia that
hold traditional Chinese beliefs. However, generalizability
to the Chinese diaspora outside of Asia may depend on
the concentration of the community. A large community
would facilitate more intracultural interaction and make it
easier to maintain a sense of traditional home culture;
however, small groups may not be able to successfully
maintain home culture traditions when living in a foreign
culture.
Appendix. Items for Construct Measurement
Construct
Superstition (Study 2; adapted from Carlson, Mowen, and Fang [2009]; a = .89)a
1. I do not want to lose things that bring me luck.
2. I sometimes carry good luck charms with me.
3. I sometimes perform little rituals to bring good luck.
4. I must admit that sometimes I act like I am superstitious.
5. People who know me would say that I am superstitious.
Involvement (Study 2; seven-point scales; adapted from Zaichkowsky [1994]; a = .92)
1. Irrelevant–Relevant
2. Unexciting–Exciting
3. Means nothing–Means a lot to me
4. Unappealing–Appealing
Findings also represent only one moment in time; thus, it is
unclear whether superstitious beliefs have decreased over
time. One might think that with continued modernization
of society, superstitions would fade or at least decrease in
legitimacy; however, as in the example of adult Thai men
buying dolls as talismans (Watcharasakewet 2015), su-
perstitions may simply become integrated with modern
life rather than displaced by it. Furthermore, longitudinal con-
tent analyses of price advertisements may reveal whether
major societal impacts can shape marketers’ practices.
Given the function of superstition as a control illusion for
reducing uncertainty, it seems conceivable that under times
of economic difficulties, a more profound use of supersti-
tious market practices may be observed. In support for
such a notion, prior research has evidenced a correlation
between the level of superstition and economic threat in
Germany for the tumultuous years 1918–1940 (Padgett and
Jorgenson 1982).
Finally, drawing on related findings, we assumed that
marketers’ practices accommodate Singaporean con-
sumers’ superstitious beliefs. Further research could
investigate the underlying direction of causality either
confirming the present assumption or potentially finding
evidence for a condition in which both directions occur
simultaneously, which seems reasonable because market
practices represent a component of a society’s cultural
beliefs. In that regard, future studies could further shed
light on the motivation of managers to engage in su-
perstitious pricing.
Loading
.68
.85
.81
.84
.74
.84
.79
.85
.96
Eastern vs. Western Culture Pricing Strategy 15
Appendix. Continued

Construct Loading

Price Attractiveness (Studies 2 and 3; adapted from Janiszewski and Lichtenstein [1999] and Lichtenstein,
Burton, and Karson [1991]; Study 2: a = .96; Study 3: a = .96)
1. At a price of S$[price] what is your opinion of this deal? (1 = “poor,” and 7 = “excellent”) .94b/.97c
2. At a price of S$[price] what is your opinion of this deal? (1 = “unfavorable,” and 7 = “favorable”) .98/.96
3. How attractive is the [product] at a price of S$[price]? (1 = “unattractive,” and 7 = “attractive”) .91/.91

Local Price Image (Study 3; a = .94)a

1. By setting the price at S$[price], ATL is projecting a local Singaporean image. .94
2. By setting the price at S$[price], ATL is acting like a Singaporean company. .91
3. By setting the price at S$[price], ATL is trying to fit into Singaporean culture. .87
4. The price of S$[price] reflects traditional Singaporean beliefs. .84

Cosmopolitanism (Study 3; adapted from Cleveland et al. [2014]; a = .93)

1. I like to observe people of other cultures. .89
2. I am interested in learning more about people who live in other countries. .92
3. I enjoy exchanging ideas with people from other cultures and countries. .85
4. I like to learn about other ways of life. .85

Brand Attitude (Study 3)d

Thinking of the [product] offered by ATL, indicate your overall attitude toward the product.
aEvaluated on a scale of 1 = “strongly disagree” and 7 = “strongly agree.”
bStudy 2 loading.
cStudy 3 loading.
dEvaluated on a scale of 1 = “dislike very much” and 7 = “like very much.”

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