ri922 
 
 M3I 
 
THE VALUE OF PRICE STATEMENTS IN ADVERTISING 
 
 BY 
 
 MERTEN JOSEPH MANDEVILLE 
 
 B. S., University of Illinois, 1921 
 
 THESIS 
 
 SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS 
 FOR THE DEGREE OF MASTER OF SCIENCE IN BUSINESS 
 ORGANIZATION AND OPERATION IN THE GRADUATE 
 SCHOOL OF THE UNIVERSITY OF ILLINOIS, 
 
 1922 
 
 URBANA, ILLINOIS 
 
Digitized by the Internet Archive 
 in 2015 
 
 https://archive.org/details/valueofpricestatOOmand 
 
/3 <7a ? 3 ^ Af> 
 
 1922 
 M 3 I 
 
 UNIVERSITY OF ILLINOIS 
 
 THE GRADUATE SCHOOL 
 
 1 HEREBY RECOMMEND THAT THE THESIS PREPARED UNDER MY 
 
 BE ACCEPTED AS FULFILLING THIS PART OF THE REQUIREMENTS FOR 
 
 Recommendation concurred in* 
 
 Committee 
 
 on 
 
 Final Examination* 
 
 •Required for doctor’s degree but not for master’s 
 
 509403 
 
TABLE OF CONTENTS 
 
 Introduction 
 
 I TNq Advisability of Stating Prices . . . . 
 
 II Comparative Prices 
 
 III Odd Prices 
 
 IV Statistical Lata 
 
 Bibliography 
 
 Page 1 
 
 " 5 
 
 " 48 
 
' 
 
 
 
 
X 
 
 INTRODUCTION . 
 
 Although the statement of prices is a component part of that field 
 of advertising which deals with the selling of articles and which comprises the 
 great majority of all published advertising, it is a phase which is given scant 
 consideration in the text books and studies of the subject, A great deal of 
 space is given to the appeals which should be used to arouse the buying instincts, 
 to the value of various colors as an attraction to the eye, to the use of dif- 
 ferent styles cf type to express character or individuality; but the advisability 
 of stating the price of the article advertised is generally dismissed with the 
 statement that prices are very important for cheap articles but that quality 
 can usually be expressed better without recourse to them. This seems to be the 
 consensus of opinion of the writers on the subject although none of them sub- 
 stantiates his views with any facts or proofs. Most of the works devote but a 
 few sentences to the subject and then allude to it only in a general way. There 
 are a few which give a page or two tc the discussion, but it cannot be said 
 that there is a single work of general reference which contains a real treatment 
 of the value of price statements. 
 
 The articles in magazines devoted to advertising yield a little more 
 material, for it is a question in which the advertisers of the country are inter- 
 ested. "Printers' Ink" at one time sent out requests for opinions upon the use 
 of prices. Articles have appeared from time to time in various publications, but 
 the aggregate is not considerable. The advertisers themselves realize the im- 
 portance of the subject and are glad to help in its solution; however, none of 
 them has made an analysis of the problem in its entirety. In fact those mer- 
 chants who have the greatest cause for using prices, i.e., the retailers, seem 
 to follow custom or prejudice in their stores without considering the merits of 
 quoting or omitting prices. 
 
2 
 
 The purpose of this thesis is to inquire into the various fields of 
 advertising where price statements might "be appropriate and to make a study of 
 when and how such statements should he made. 
 
 No one will deny that there are some fields of advertising in which 
 price has no place - there are some who deny it a place in any advertising. ^ 
 Institutional advertising and advertising intended to establish brand or firm 
 name have no use for prices. Publicity advertising can very well get along with- 
 out their use, although prices have been used to advantage in some display signs. 
 The purpose of such advertising is not to sell goods directly, however, but to 
 establish the name of the firm or product in the mind of the buyer. By this 
 means goods are sold indirectly. Therefore, such forms cf advertising have no 
 place in this thesis, only those forms which deal directly with the sale of 
 products being considered in this study. It is not the intention to show that 
 prices should or should not be stated in all cases, but to show under what con- 
 ditions such statements are applicable and in what form they are best quoted. 
 
 Naturally advertising may be classified along several different lines. 
 It may be classified as either local or national or even international; it may 
 also be classified according to the media used, whether newspapers, posters, 
 display cards, sign boards, magazines, window displays, etc. It would be a waste 
 of time to go through each one of these separately and give it a distinct treat- 
 ment. On the other hand, there are several types of advertising which need 
 special emphasis because of their extensive use for the propagation of price 
 s tatements . International advertising may be discarded because of its relative 
 unimportance and the different national characteristics. Local and national ad- 
 vertising follow the same general rules in many respects and there need be no 
 special distinction made; on the other hand, for some purposes there is a decided 
 
 1 Notably the Sherwin-Williams Paint and Varnish Company. 
 
difference and it will be the air:, of this thesis to set out these differences 
 wherever they exist. Uhen a general statement is made in the discussion of the 
 use of prices it may be taken as applying to both local and national copy unless 
 
 otherwise stated. 
 
 As was said before, the various forms of institutional and publicity 
 advertising are not to be discussed here. This simplifies the number of media 
 to be treated. The problem will naturally settle around newspaper and magazine 
 advertising as these two fields comprise the majority cf advertising to the con- 
 sumer. Catalogues are also important, of course; especially in regard to the use 
 of odd prices, where the catalogues cf the mail order houses offer one of the 
 best illustrations of the consistent use cf such quotations. The use of price 
 cards in window displays and price tags on articles within the store afford 
 special problems of their own and will be given separate attention in the text. 
 
 The study may best be carried cn by dividing it into several differ- 
 ent phases. For this purpose four principal divisions have been chosen. These 
 are : 
 
 I. The Advisability cf Stating Prices. Under this heading the gen- 
 eral problem will be discussed. Such questions will arise as: Are prices best 
 adapted to cheap articles or may quality goods also profit by their 'use? Should 
 the retailer rely upon his salesmen to acquaint the customer with the price or 
 mahe a consistent disp lay of prices in the papers and in his store? Is it best 
 tc quote prices in a rising or falling market? Should prices be made a feature 
 of the advertisement or merely an auxiliary? Are prices well adap-ted to national 
 advertising? These and other questions of a similar nature will be taken up and 
 solutions attempted. 
 
 II. Comparative Prices. In this division the use of comparative 
 prices will be criticised pro and con and a suiamary of the movement against their 
 use given. The quoting of comparative prices has received a great deal of 
 
4 
 
 attention from retailers recently and is one of the important phases of the price 
 
 problem. 
 
 III. Odd Prices. The employment of odd prices is rather closely re- 
 lated to that of 'comparative prices, b\it still there is sufficient difference 
 to warrant separate treatment. Mail order catalogues are the principal expon- 
 ents of this form of price statements and the question will be taken up mainly 
 from that angle, although their use in local and national advertising will de- 
 mand some comment also. 
 
 IV. Statistical Data. This division does not f-ally take up the ques- 
 tion of the value of price statements fron an academic viewpoint, but endeavors 
 to show the trend of advertising in regard to the display of prices. In deter- 
 mining this trend recourse has been had to the advertising in the Saturday 
 Evening Post from 1910 to the present date, 1922. Percentages and tables are 
 given to show what effect the business cycle has had upon the quotation of 
 prices. 
 
 

 
 
 
 
 
 
 
 
 
 
 . 
 
 
 
 
 
 
 
 
 
I TEE ADVISABILITY OF STATING TRICES.- 
 
 o 
 
 A perusal of "both national and local advertising will demonstrate to 
 the observer that more than half of the firms have no definite, fixed policy in 
 stating prices. They quote prices at times and at others omit them; often in 
 the sane advertisement some articles will hear a price v/hile others of a like 
 nature will not. To he effective in the greatest degree all the advertising of 
 a firm should follow some predetermined plan, and the use of prices is one of 'the 
 important factors which must he included in this plan. It is not necessary that 
 every advertisement should or should net carry prices, hut given certain condi- 
 tions there is a one best way to handle the problem. 
 
 There is absolutely no reason for a half-hearted compromise in the 
 situation, those firms that try to make a play on both sides are only wasting 
 their own money and good space which might be put to some real use. Advertise- 
 ments that include such statements as, "reasonably priced," "prices extraordinar- 
 ily low," "you will find our prices right," "new low prices," "recent reductions," 
 and many others of similar tone, are trying to cover two vastly different fields 
 of advertising and failing miserably in the attempt. Such statements tell ab- 
 solutely nothing, but very often give an impression exactly opposite to the one 
 they wish to convey. They have the effect of saying, "V.'e hope we won't cheat you, 
 but we are afraid to tell you how much we are going to charge you." The adver- 
 tiser evidently imagines that he has written a very high class advertisement which 
 appeals to the bargain seeker as well as the spendthrift. As a matter of fact 
 no one is deluded by the subterfuge, a price appeal has been attempted but not 
 carri d out, and at that point the advertisement falls flat. There appears to be 
 a lack of faith. One of the worst of these phrases is "our prices will surprise 
 you;" sometimes they do if anyone tak'-s the trouble to find out what they are. 
 Which way the surprise will be is not stated. 
 
A short time ago the manufacturer of a high class automobile announced 
 in large headline, "Our prices have been reduced 5600 to 5800.” That was all that 
 was said about the cost of the car; the reader was left to wonder whether the re- 
 duction had been made from $3,000 or $8,000. Advertising is intended to tell news, 
 but half the news is no better than none at all; it very often causes annoyance. 
 
 It is the same as if a newspaper printed the announcement, "A prominent senator 
 arrived in the city today and will speak upon a subject of great importance this 
 evening.” If the manufacturer thinks that it will help the sale of his car oy 
 announcing that the price is lower than it formerly was - and he evidently believes 
 it will or he would not make the reduction - why keep the present price a dark 
 secret; it cannot help his cause one whit. Either it is best to quote the price 
 or it is not, a midway measure satisfies no one. 
 
 There is a general impression, more current a few years ago than at 
 the present time, that the statement of prices detracts from the atmosphere of 
 quality which an advertiser tries to build up. A great deal of the advertising of 
 so-called quality goods contains no prices, due to the prevalence of this belief. 
 Its fallacy can be proved easily, but still there are many who cling to it. Pos- 
 sibly this belief had its inception with the highest class firms, who adopted the 
 custom of advertising the entire organisation rather than the products; i.e. insti- 
 tutional advertising. This type of copy is needed to keep up the prestige of an 
 establishment or to create a reputation, and consequently prices are not applicable 
 in this connection. The ilea of not quoting the price has persisted, however, and 
 
 various estimates have been made that from fifty to eighty per cent of all ad- 
 
 1 
 
 vertisements do not quote the price, 
 
 1 The higher estimate is given by Mr. C. P. Russell in an article entitled, "Is 
 it Time to Advertise Price as Well as Product?", Printers' Ink, November 18, 
 1920, p. 3. He arrived at his conclusion by counting the advertisements in 
 a woman's magazine. The estimate is probably high for all classes of advertis- 
 ing including both national and local. Enumeration of advertisements in the 
 "Saturday Evening Post" shows practically the same result in 1920, but the lack, 
 of crice quotations was especially high in that year, due to economic condi- 
 tions. This matter is discussed further in the fourth division of this treatise, 
 
The mere fact that the price is or is not quoted does not determine 
 the quality of the advertisement or influence the reader to come to that conclusion 
 regarding the product. The impression of quality is obtained by the type, the 
 border, the use of white space, the choice of words, and the general appearance 
 and character ox the advertisement. Price statements may be made in such a fashion 
 that the physical appearance is not marred in the slightest. 
 
 That the stating of prices does not detract from the quality of the 
 r.roduct can best be proved by citing a few examples of their use. it is scarcely 
 worth while to note that the most aristocratic department stores in the country 
 believe strongly in i>he advisability of quoting prices; a glance at any newspaper 
 will convince the most skeptical of that fact. Naturally institutional copy is 
 used to a large extent, but when goods are offered for sale the price is generally 
 included. It is necessary to go to the specialty dealers to ascertain what in- 
 fluence price statements have upon the sales of a quality product, for it is they 
 who have most persistently hidden their products behind a veil of exclusiveness 
 and refused to take the public into their confidence where prices were concerned. 
 
 The Gruen Watch Company has been a consistent user of prices without 
 detracting from the dignified tone of its advertising. Several of the other 
 watch manufacturers have quoted prices at various times but none has gone to tne 
 extent of Gruen in combining prices with a purely quality appeal. 
 
 One of the most spectacular illustrations of the results obtained by 
 price statements is afforded by the Polls-Poyce automobile advertising. ..hen 
 the Rolls-Soyce Company of England established an American branch at 2 ris :ield, 
 Massachusetts^ the company’s advertising policy was not changed and the Rolls-Boyce 
 announcements carried no prices. No one can dispute the quality of product or 
 the standing of the firm; the car has attained an international reputation and i3 
 
 1 "Does a Quality Article Suffer Loss of Dignity ’’.hen Priced?" by Poland Cole. 
 
 Printers' Ink, .la y 06, 1301, p. 141. 
 

considered by many to be the foremost automobile of the world. The company is a 
 conservative Fnglish firm which has been manuf ac tur ing high-class motor cars for 
 about twenty years, so it was quite an innovation when the advertising began to 
 include prices. The copy has always been distinguished by a large amount of white 
 space and very few words; it takes the appearance more cf an announcement card 
 than an advertisement • The name "Rolls-Royce" appears in moderate-sized, ] lain 
 type and below this a few words concerning the character of the car. In very 
 small type at the bottom is found sons such statement as> "An open phaeton model 
 coi pletely equipped, $14,950." It is reported that shortly after the price began 
 to appear in this manner the sales were tripled. A - e . ... cars were even 
 
 sold by mail. Since its first experiment with the power of the stated price, the 
 Rolls-Royce Company has continued the use cf prices in every advertisement it 
 has published in America. 
 
 In commenting upon this experience -r. Roland Cols has this to say:" 
 
 "The maker of a quality article, who keeps price out of sight, prob- 
 ably loses more sales to people who believe the price to be double what it actually 
 is, than he makes to the few who obey the quality summons because they do not care 
 what price they pay. 
 
 "Why do so many advertisers tumble into this trap? Apparently, it 
 makes little difference whether the unit of sale is five cents, a dollar, a 
 hundred, or $14,950. Many institutions have labored for years to surround an 
 article with a quality atmosphere when the simple expedient of stating the irice 
 would have helped to do the trick in one-tenth of the time." 
 
 The idea that the magnitude of the price makes little difference in 
 results seems to be borne out by facts, and this rule may also be applied to 
 articles of any style or description. One should scarcely believe that advertising 
 
 1 "Does a Quality Article Suffer Loss cf Dignity When Priced?" by Roland Cole. 
 
 Printers' Ink, I.Iay 23, 1921, p. 141. 
 

the price of a rare painting or antique would materially .ffect the sales, but 
 such is the case . according to Mr. C. P. Russell. He says, -1 "A certain dealer in 
 antiques, rare books, prints, etc., had been advertising for some time without 
 large results. He was anxious to establish his place as headquarters for col- 
 lectors, but buyers seemed shy. Finally, he changed the tenor of his copy. In- 
 stead of advertising his business, he advertised specific articles with specific 
 prices. His copy read something like this: 'First edition of Blank's works, 
 hand-tooled covers, illustrated with rare engravings by So-and-Sc. Very scarce 
 and precious; $12,000.' He got an order the first day from one of the wealthiest 
 men in Hew York, and inquiries from other rich collectors who previously had never 
 seemed to be aware of his existence. 
 
 "A New York art firm had been doing business for several years with 
 only moderate success. Paintings seemed to move slowly. They began to advertise 
 simply by running a cut of a painting, naming the artist and quoting the price. 
 They now get orders from distant States, whereas formerly they had considered New 
 York City their only field." 
 
 The use of mail-orders in purchasing such expensive articles as auto- 
 mobiles and paintings shows the importance of stating the price. A prospective 
 purchaser may have a strong desire to buy a certain article but his mind is net 
 made up until he knows the price; and that is where the sale hangs. Price is the 
 final consideration and the desire to purchase often lies dormant until that point 
 is cleared up either by the advertiser himself or by some chance information 
 which the prospect happens to get. That the quoting of a price brought such in- 
 stantaneous res’ll ts in the cases mentioned shows that the purchaser does net like 
 to take the initiative in finding what the article is going to cost him. The 
 final punch which puts the sale across is lacl in hen the price is emitted. 
 
 1 Printers' Ink, December 23, 1920, p. 44. 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
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1C 
 
 In the advertising of quality goods, however, it is host not to em- 
 phasize the price, for this cheapens the appeal. Only one kind of appeal should "be 
 made at a time and the appeal of quality is one of the strongest which can he made. 
 An investigation made by the Research Committee of the Dallas (Texas) Advertising 
 League^" showed that quality was regarded as the most important consideration in 
 advertising. The women interviewed placed style as second and price third, while 
 
 the men ranked price second. To the question, "Are you willing to pay a slightly 
 
 a 
 
 higher price for an article in order to huy it from, a firm: which has/ reputation 
 for hacking its advertised word and which has a reputation for honesty, fairness, 
 and liberality?" the replies were universally "Yes." 
 
 An experiment conducted in the psychology laboratory at the University 
 of Minnesota^ shows practically the same results; age and reliability of tile firm 
 and the quality of the product exert the greatest influence on the buyer. While 
 the methods used might be criticized in that they smack more of the laboratory 
 than conditions in actual practice, the conclusion that reliability and quality 
 come foremost in the consideration of a large percentage of buyers cannot be 
 doubted. 
 
 However, this does not invalidate the statement that price is the 
 point upon which most sales hinge and that the knowledge of that price must come 
 before the final decision is made. The fact that a price is included in advertise- 
 ment does not mean that the appeal rests upon that ground alone. The copy may 
 stress quality, reliability, style or any other feature and the effect will not 
 be altered by including the price of a sx^ecific article; to many people a high 
 price is an indication of quality. If the price i3 honest no one need be afraid 
 of quoting it. A simple x-rice statement is nothing but further information about 
 
 1 Quoted in "Judicious Advertising , n April, 1920, p. 61. 
 
 2 Gale, "On the Psychology of Advertising. University of Minnesota publication, 
 1900 . 
 

 
 
 
 
 
 
 
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ii 
 
 the article, and if the type or position does not emphasize the statement, there 
 is no indication of cheapness or price appeal. 
 
 Prices may be stated in a variety of ways; they may be put in the 
 headline, in the body of the advertisement (the "talk"), at the bottom, or in a 
 row down either side. The type may be large, small, or the same style as the 
 copy, ornate or plain; but no matter where or how the price is shown, it indicates 
 to the prospective customer that the firm is not afraid that its goods are worth 
 less than it is going to aslc him. 
 
 Naturally, if the goods are on sale at a bargain, or if the price has 
 been recently reduced, or if they are considered especially cheap at that quota- 
 tion, the price should be emphasized and stated in bold figures. For this pur- 
 pose the headline is a good position. If a large number of articles is listed 
 in the same advertisement, the price is generally placed after the description 
 of each article. A neat arrangement which emphasizes the price is to place the 
 prices in a row down the edge of the advertisement. This is somewhat on the 
 order of a restaurant menu and allows easy comparisons. Sometimes this row of 
 figures is placed at the left hand side instead of the right, but the position 
 makes little difference except that the left hand side, being the one upon which 
 the eye falls first, probably accents the prices slightly more than the right. 
 
 The bottom of the copy is the least emphatic position, and this is where most 
 high-clas3 firms place their prices. If no special emphasis is to be placed upon 
 the price - that is, when the price is simply given for general information - this 
 is the best location. 
 
 Placing the price within the "talk" of the advertisement can be done 
 only when the copy is "newsy" and brief; otherwise the j rice will be hidden and 
 its effect lost. YJhen this position is used, the advertising appears at the first 
 glance to contain no prices and is sometimes passed over by those shoppers who 
 
look through the advertisement 3 to see how best they may spend their money, "hen 
 price statements are to be made, it is just as well that they be put in lain view, 
 for the clearer an advertisement reads the more influence it exerts upon its 
 
 readers . 
 
 The type used for the figures creates a certain impression upon the 
 reader also. Generally the type should be uniform in style throughout, but figures 
 are plain facts and do not lend themselves readily to fancy type. There is noth- 
 ing gained by placing the price in such ornamental type that the sixes and nines 
 look like zeros. Plain type which cannot be misunderstood is the best to use. 
 
 The size of the type used for the price statements may vary from, that used in the 
 rest of the copy. Large, heavy figures indicate that the price is being emphasized 
 while small, light figures show that only information is being given without any 
 fuss or flurry. Thus the heavy, black type is best adapted to the bargain offer 
 or price inducement, while the small, unobtrusive type is the kind applicable to 
 the quality appeal. An advertiser need never fear that a price statement set at 
 the bottom will be overlooked; prices are the thing that the buyer is looking for 
 I if he is given half a chance to find them he will hunt them out. 
 
 The quoting of prices in national advertising is consequently closely 
 allied with the policy of the firm in maintaining the resale price of its products. 
 It is not necessary here to go into the problem of the advantages and disadvantages 
 accruing from a maintained retail price, but before prices can be quoted in 
 national publications it is imperative that there be 3 on.e concurrence between the 
 manufacturer and his wholesale and retail distributors as to what the final price 
 is to be to the consumer. I'To end of hard feelings are caused by having to pay 
 twelve or fifteen cents for a can of beans which has been advertised in national 
 publications at ten cents. Cutting the price below that advertis ] 30 -roves 
 detrimental to the product. The maintaining of the price is a hard thing to ac- 
 complish and no doubt this is the reason why prices are not more prevalent in 
 
13 
 
 national advertising. 
 
 "Printers' Ink" comments upon this ,hase as follows : x "That are 
 prices? The public wants to know. The manufacturer may have to close his plant • 
 if the public doesn't think his product is priced fairly. Yet this most It. ; or t ant 
 member of the manufacturer's sales force, fixes any price he pleases. The manu- 
 facturer loses many a sale, transforms many a potential consumer into an enemy 
 if his distributor takes liberties with his product." 
 
 That the retailers really profit by the manufacturer's advertising the 
 price is shown by a resolution passed in August, 1920, at the convention cf the 
 New York Retail Grocers' Association held at Poughkeepsie. The resolution read:’ 
 
 "Whereas, During the last few years prices on all commodities have 
 risen to such proportions that all former established retail trices had to be dis- 
 continued and new ones established; .and, whereas the great majority of the nation- 
 ally established advertised articles are kept constantly before the public through 
 the newspapers, magazines and other mediums without the slightest notice or con- 
 veyance from the manufacturer to the public that the old resale price had been 
 discontinued; therefore be it 
 
 "Resolved, That the delegates to the Annual State Convention of Retail 
 Grocers assembled, do hereby ask and they demand that all such manufacturers im- 
 mediately put a resale price with their advertising as of yore, to convince a 
 much-bewildered public that it is net the retailer who is pocketing the money be- 
 tween the old established and the new selling i>rice.’ : 
 
 1 Comment upon "Your Prices to Lie" by Roy Dickinson, Printers' Ink, April 28, 
 1921, p, 57. The article tells of a shopping tour of groceries where nation- 
 ally advertised goods were priced differently in practically every store. 
 
 2 Quoted in Printers' Irik, September 16, 1920, p. 41. 
 

 One of the "best ways to control the r.e sale price is to rsark the 
 price on the package cr on the article itself. Several shoe nanuf acturer s stamp 
 the *'rice on the soles of t' sir product, and h e practice of putting the price 
 on the package is likewise followed hy a large number of manufacturers of food 
 roducts. This '-rot act s the public fra. unscrupulous merchants and assures t 
 that they are not paying too high a price. 
 
 VThen a manufacturer starts production on a new conroo iity he natur- 
 ally comes up against the question of whether his advertising should hear the price 
 cf the article or spend its effort in enumerating the uses and establishing a 
 desire among the consumers, her a new product it is almost imperative that the 
 rice be stated, for otherwise there is nc measure of value. It is all right to 
 use teaser campaigns and arouse the buyers curiosity, but some day he must be let 
 into the secret. It is the same way with quoting the price on a new product ; 
 when the price doss not appear he becomes inquisitive and wants to learn what it 
 is, but if the manufacturer persists in keeping the price a secret the buyer soon 
 loses interest and his thirst for knowledge about that particular article dies. An 
 old established product may omit the price once in awhile without causing much 
 notice, but a statement of price is essential to a product which is .just being es- 
 tablished. 
 
 The retailer is net hampered by the ur obi ere cf the maintained price 
 '■ 1 3 is left free to follow his own whim in the matter of quoting “rices. The 
 
 fact that there is not a mere general employment of '"rices in retail advertising is 
 due to several causes. One merchant assumes that the use of prices will make 
 people believe he conducts a cheap store, another imagines that prices are applicable 
 only in the event of a sale, a third would like to quote prices but says that he 
 can not afford a full-page spread w 1 ere he would have room to show is entire line, 
 and a fourth claims that his advertising draws the p eople to the store where the 
 

 
 
 
 
 
 
 
 
 
 
 
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15 
 
 clerks can tell them the price after creating a desire to - ur chase, and sc it 
 
 goes. 
 
 The answer to the first merchant has already been made under the 
 discussion of the quality appeal, ho one has cause to be afraid t • at a statement 
 of price will place his establishment in a cheap class unless he makes tb at state- 
 ment in such a way that it draws attention tc the fact that the store is catering 
 to a cheap trade. If he does net want to be considered a low-priced store, he 
 simply has to convince the public of that fact by quoting high prices. Nothing 
 else will carry as much weight in an argument. 
 
 Of course prices are paramount when a sale is announced but they 
 are important at other times as well . Truman A. ~e TTeese says," "... I should 
 say that the secret of success in a publicity campaign for a general merchant in 
 local mediums consists in a daily announcement of PEIC23 covering what the mer- 
 chant calls his ’leaders' in each department of the business. The ublic is in- 
 terested in PRICES. When you have created a WA11T in the mind of the reader through, 
 your advertisement, the next question that interests him. is the price at which 
 that Want may be satisfied. In the field of general merchandising it may be stated 
 as a fact that a certain number of articles that are carried in a general store 
 
 are wanted in each family each day or week in the yean. The mer 
 
 chant t 1 : ev e f c r e 
 
 oas this established want or desire or necessity as a basis for his business. Eis 
 publicity, therefore becomes largely a question of quality, newness, stylishness, 
 and price; but the latter is after all the lode stone vf ich draws the shopper 
 into the marts of trade." 
 
 It is not necessary for a merchant to include all of his assortment 
 
 1 "The Principles of Practical Publicity" by Truman A. De Wees?,p. 104 
 
16 
 
 of goods in every advertisement; to spread the effort over several unrelated 
 articles creates the effect of confusion and is detrimental to all. Tie best 
 results may be obtained by selecting some definite article and putting all the 
 power of the pen behind it. A fall description of the article should be given, 
 and this necessarily includes the price. Where a erchant is not willing tc 
 devote his entire space to the exploitation of one article, he may still give 
 the main part of his space to advertising bis store but place an illustration 
 of some specific article in an unused corner and describe it as fully as pos- 
 sible - stating the price. 
 
 The use of a specific article is also applicable where- price 
 
 ges occur. The st. t, ’ "Suits priced fro:. $25 to $6C" is inferior to 
 a cut wit! tl : legend under it, "$40. Other suits $25 to $60." It is easier 
 for the mind to grasp one object than an entire group, and this is the principle 
 
 which makes a definite price statement superior to a range, 
 
 W-e same rule 
 
 applies tc such quotations as, "Umbrellas $1.00 and up." T ie might better be 
 
 given. 
 
 ir.’a T' 
 
 have five hundred umbrellas priced at $1.00. Other models may be 
 
 had from $1.50 to 0V.5C." T is last statement confines the rices within limits 
 and males s a definite announcement of the number of umbrellas available at the 
 
 low price. 
 
 The average customer's mental process passes through four stages 
 
 something like this:* 
 
 1. What is that article? 
 
 2. What is it for? 
 
 3. Is it good stuff? 
 
 4. What is the price? 
 
 hie large department stores and mail-order houses recognize this 
 
 1 "When t: ’ti se the Price" by C. ?. Bussell, Printers' Ink, December 23 
 
 1920, p. 41. 
 
17 
 
 fact and there fora make their advertisements as complete as possible. The best 
 time to sell a prospect is when he is interested, and that is when he is read- 
 ing the advertisement. I- the price is left out the sale is very seldom com- 
 pleted and often the prospect is lost. "To become interested in f : description 
 of an article, only to find in the end that the price, one of the most important 
 pieces of information, has been omitted, is, to say the least, disappointing - 
 and it is suspicious, too. ‘The price of that oust be 'way up' will be the first 
 thought of the reader, who is not likely to seek further information, while under 
 
 n 
 
 that impression. " A 
 
 The question is often asked whether the price is mere important 
 on goods bought by men or women. The price is important on all articles, but if 
 a choice mast be made, it is probably more important to quote the price to men 
 shoppers than women. Men seem t: have a particular aversion to inquiring the 
 price when they can ascertain it by come ether means. A man usually shops in a 
 hurry and therefore he wants all the information possible before he goes into 
 the store; if one merchant gives him that information while another dees not, the 
 chances are that he will patronize the first one. 
 
 A woman, on the other hand, is more prone to shop around and com- 
 pare goods and values. Che is interested in the price. - often ere than the man, 
 but she has no scruples about ashing the price after she gets into the store. 
 However, she generally gees to those stores which advertise prices which suit her. 
 She does part or shop] ing in the . aj er before she comes down town. 
 
 Arthur J . Mealand carried cut an investigation among both men 
 
 and women shoppers with the ;urpose of enlightening the merchants regarding this 
 2 
 
 problem. The question asked was: 
 
 1 Albert E. Edgar, "How to Advertise a Retail Store," p. 52 . 
 
 2 Arthur J. Mealand, "Effective Store Advertising," pp. 25 and 37. 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 . 
 
 
 
 
 
 
 
 
 
 
 
 • 
 
 
 
 
 
 
 
 
 
 . 
 
 
 
 
 
 
 
 ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - 
 
 
 
 
 
 
 
 
 
 ’ 
 
 
 
 
 . 
 
 . 
 
 
13 
 
 "Do you over "buy or inquire about an advertised article when the 
 price is not given in the advertisement?" 
 
 One thousand women responded: 853 replied "Mo;" 147 answered "Yes." 
 Mr. Meal and contends that the proportion replying "Mo" would have been even great- 
 er if he had made it clear that he refers! solely to articles advertised by the 
 stores and that he did not include magazine advertisements. His comment is: 
 
 "Mvere is, I discovered, a prevailing sentiment among women that 
 when prices are not published the advertiser loss not intend to 'play fair'; 
 that, if possible, he will take advantage of the buyer. Ths explains why 853 
 out of a thousand will not even inquire about an advertised article, ruch less 
 buy it, when the price is not quoted." 
 
 Of the men he says: 
 
 "All but a very few, and 2 any with considerable emphasis replied 
 
 ..ol 
 
 klever I 
 "Met on your life! 
 
 "The remarks cf others would not, I fear, sound very complimentary 
 to those advertisers who continue trying to reach the public, especially the 
 Lsculine portion of it, without quoting prices. Those who did reply 'Yes’, and 
 they were very, very few indeed, added: 'If the article appeals to me and is 
 
 really needed. ' 
 
 "Talcing into consideration the answers received to this question 
 from cot.: women and men, I am convinced that the advertiser who does not quote 
 prices cs absolutely wasting his effort, time and money. I repeat :- 
 
 "QUOTE PRICES. It breeds confidence and confidence is the great- 
 est asset a firm can have. " 
 
IS 
 
 Many dealers do not like to put prices in t" eir windows "because 
 they feel that it detracts from the display. The profuse U3e of rice cards 
 of every description does create a disorderly appearance and is anything "out 
 artistic. The window display is an important part of a retailer’s advertising 
 scheme and should he considered as carefully as ary other phase of the general 
 sellin plan. A great many shoppers are attracted to the store for the first 
 time because of the windows. Mr. I leal and claims that air. oat universally the 
 windows are the means for attracting the customers for the first ti e, and that 
 an important part of the window display is the conspicuous u ss of price cards?" 
 
 Price cards should correspond to the character of the display 
 and the dimensions should he in the same proportion as the window. For instance, 
 if the window is oblong the cards should he of the save shape and their length 
 and "breadth correspond to one another in the same proportion as t?'e length and 
 "breadth of the window. 2 The cards are r . ore artistic when placed at the foot of 
 the article and hot pinned on it. Small easels will prove effective for this 
 purpose. As most people step close to the window tc look, the host pc si tier, for 
 the card is not too near the front hut slightly hack. 0 
 
 The principal feature to strive for in window displays is attrac- 
 tiveness and all else si Id he subordinated to this end . '.boat price cards can 
 he made to fit into an artistic display has been proved by window dressers 
 throughout the country. In stores who do not cater to the artistic tempered, the 
 use of price cards is paramount above ail else and they should he resorted to 
 without stint. 
 
 hi thin the store the price tags take the place of the cards in 
 tae windows, wit- this difference; the price tags nay he written in code so that 
 
 1 
 
 Arthur 
 
 J. Me aland, 
 
 "Effective Store-Adverti sing , 
 
 " P. 1? 
 
 2 
 
 "The h 
 
 orld F.etailor 
 
 >" April, 1922, p. 1. 
 
 
 3 
 
 Arthur 
 
 J. Me aland, 
 
 "Effective Store-Adverti sing, 
 
 O 9 
 
 " p. 61 
 
none but the employees of the store are able to decipher them. This practice 
 is a relic of the old days when each article had more than one price and higgling 
 was the rule. The one-price system is generally praised by the writers on the 
 subject, but a few still believe that secret codes indicate wore dignity in a 
 store than plain price marks. 1 As a matter of fact the most dignified stores 
 today are the ones using the plain price system as they realize that the use of 
 a price interpreter not only takes time but appears suspicious. 
 
 p 
 
 One prominent advertising man expresses his views as follows:-’ 
 
 "The one pleasure, above all others, to shoppers, male or female, 
 is to see plainly the price attached tc the various articles c* merchandise while 
 they are spending a few minutes, from one cause or another, in your store. 
 
 "If I had the opportunity to make a suggestion as invited in the 
 ’At Your Service’ ad, my suggestion would be: Put price tags on your goods 
 where shoppers can see them. 
 
 "I can make my arguments plainer by having you answer the follow- 
 ing questions: 
 
 1. How many times each day are you called from some distant 
 part of your store, or some particular work, or leave a customer, 
 tc answer: 'Dm at is the price cf this?’ 
 
 2. How : ruch cf your time, and that of pour clerks, is taken 
 up each day waiting cm 'sight -seeing’ shoppers, whc have no in- 
 tention of buying, but only wish to price goods? 
 
 3. Did you ever stop tc figure that by displaying price 
 tags you might be able to economize on clerk hire? 
 
 4. Do you realize that if you were tc install a price tag 
 system it would be a drawing advertiser cent in itself? 
 
 1 Opdycke, "Advertising and Selling Practice," p. 182. 
 
 2 'atress, "How a P.etail Her chant _SDcul 
 
21 
 
 are 
 
 at 
 
 5. To you appreciate tl it sc .e people are reserved, others 
 are timid, about asking the prices of goods in which they are not 
 especially interested just to avoid pressure being - \- 1 on then, to 
 buy, and which they night have bought had the price been dis- 
 played and was within their rears? 
 
 6. Do you know t' at window- displayed price tags are t‘ e 
 cause of many sales? Often attracted by some article in a store 
 window - but having no price tag - I have passed on rather than 
 step in to find out; and I am no exception to the laws of human 
 nature. 
 
 ?. Did you ever ask yourself why it is not as important to 
 display prices in your store as it is in your newspaper advertise- 
 ments? In your advertising you use them to attract notice. T ." y 
 not follow the same plan where customers are actually at hand? 
 
 8. Do you knew that a price will sometimes attract atten- 
 tion when without it an article would have passed unnoticed; in 
 other words, that some peoule are so mentally constituted that 
 figures arrest their thought quicker than a piece of merchandise, 
 and that the price, rather than the quality of the goods, is the 
 incentive that prompts them to buy? 
 
 9. Have you ever tried the ex eri merit of watching shoppers 
 pass down an isle along which goods are priced and then down 
 another aisle where prices are not shown? Try it, and note the 
 results. 11 
 
 The question arises in the wind cf the advertiser: If prices 
 
 good is it well to use them at all times? Prices may he used to advantage 
 all times, for a just - rice never injured the merchant, but there are tires 
 

 
23 
 
 II COMPARATIVE PRICES. 
 
 The question of the advisability of quoting comparative prices - that 
 is to say "was $5.00, now $3.75," or $5.00 value for $3.75 - is one of rather 
 recent origin. The rise of comparative prices in advertising is not new x in 
 itself, hut the discussion concerning the ethics of their use dates from 1916. 
 Until that time it was considered necessary to state two prices in an advertise- 
 ment in order to make people believe that prices were reduced, and that a bar- 
 gain was being offered, ft that time a few of the more progressive merchants be- 
 gan to realize that the use of comparative prices was being overdone and that 
 it already had lost a large part of its pulling power. This was probably no 
 new condition, but it took the advertising profession some time to overthrow 
 the teachings of the greatest of all early advertisers, P. T. Bar nun, when he 
 said that people liked to be fooled. Comparative prices had come to be so ex- 
 aggerated that little faith could be put in them, and consequently they were 
 defeating their own purpose. 
 
 1 In a letter to the writer Mr. Louis B lumens took, Advertising Manager of Stix, 
 Baer and Fuller of St. Louis, says, "Comparative prices have been in use 
 about fifty years. The general store, later the department store, to stim- 
 ulate business, cut the prices of staples. That was the beginning. Natur- 
 ally, people responded, and gradually the public was educated to watch for 
 the specials - to purchase things ’on sale.'" 
 
 2 In October, 1913, Stix, Baer and Fuller of St. Louis made the announcement that 
 henceforth their advertising would quote no more comparative prices, Mr. 
 
 Louis B lumens took, their advertising manager, had brought about the change 
 
 in their policy, and to him is credited the instigation of the movement which 
 ha3 spread throughout the United States, and is today one of the chief con- 
 troversie3 in retail advertising. Several other large department stores fol- 
 lowed the lead of Stix, Baer and Fuller, but it was not until the price de- 
 cline following the late war that the question came into wide discussion. 
 Notable among the firms which early adopted the policy of stating no cor - 
 parative prices is Marshall Field and Company of Chicago. This store was 
 probably the first one to discontinue the use of such prices, as Mr. G. E. 
 Schaeffer, Advertising Manager, states that Marshall Field and Company adopt- 
 ed this policy about sixteen years ago, which would make the time 1506. The 
 fact was never stressed particularly, however, sc the recent movement, which 
 has created so much comment, may be said to begin in 1916. 
 

The fight against the use of comparative prices has been carried on 
 consistently by Mr. B lumens took who made it one of his chief aims during his 
 term as President of the Associated Retail Advertisers. Mr. Blumenstock i3 
 unalterably opposed to the quoting of comparative prices in any form whatsoever. 
 His position is well shown by a perusal of some of the advertisements of Stix, 
 Baer and Fuller. In one of them-*- he says, "The question is frequently a3ked, 
 'Are comparative prices the only evil in retail advertising? 1 - and the answer 
 is 'No. 1 But the 2 r are the basic influence for the greatest az punt of evil. 
 
 There are many other abuses that must be discouraged - and it will be done by 
 an awakened public opinion - by a realization that economic wastes are a burden 
 upon the purchasers. The large, flamboyant advertisements, filled with exag- 
 gerated statements, superlatives that are beyond belief, are destructive to ad- 
 vertising and insulting to the public intelligence....". 
 
 In another advert isement~ he says, "That is a comparative price? 
 
 This question, which is frequently asked, can be best answered by quoting an 
 advertisement of that character - for example: '$50 Suits for $30,' '$4.00 Silk 
 Hose for $1.98, ' etc. 
 
 "Sometimes the claim is made that they are reduced; other times a 
 claim is made of greater value; in all instances, they are comparative, being 
 based on past history or present opinions. Te found many years ago that com- 
 paratives could not be used without affecting the truth in our advertising. 
 
 "The fact that an article sold at a higher price on a different oc- 
 casion does not establish its value. Sugar today is being sold at 7 cents a 
 
 pound. Two years ago it sold for 35 cents. What is its value - 7 cents or 
 
 35 cents? Can we find any basis for value in this instance? 
 
 1 Appearing in the St. Louis Globe - Democrat of February 23, 1922. 
 
 2 Appearing in the St. Louis Globe - Democrat of February 21, 1922. 
 
25 
 
 "Price is, or should be, the measure of the cost of production and 
 distribution. And the statement that any article has a greater value than the 
 selling price is merely the expression of an opinion - not a fact. 
 
 "Prices are always reduced for a reason - and the action affirms the 
 fact that the values as intimated or expressed by the original prices no longer 
 exist, that conditions have created the lower prices. 
 
 "When merchandise is sold (like every other commodity) on the basis 
 of today’s market price, no matter what that price may be, there will be a 
 stabilization of advertising which will result in a greater degree of confidence 
 and lower distributing costs. The elimination of comparative prices is the first 
 step that is necessary to bring about this ideal condition - and it will not be 
 brought about until the public thoroughly understands that it is bearing the 
 burden of expense caused by inefficient advertising." 
 
 In Cleveland a new paper - or rather advertising medium - has been 
 established by several of the large advertisers called the "Shopping Hews." 
 
 The distribution is free every Saturday morning and its aim is to reach every 
 house in the city. The paper consists entirely of advertisements except about 
 one-third of the first page which contains an article usually setting forth 
 the advantages of the "Shopping Hews" to the Cleveland buyers and telling some- 
 thing of the service it is trying to perform. It claims "Truthful Advertising" 
 and "Guaranteed Values." The principal point from our view is that no compara- 
 tive prices are allowed on its pages. This goes to show to what extent the 
 campaign against their use has been carried. 
 
 The Better Business Bureaus are concerned more with the truthful 
 use of comparative prices than with their elimination; they take the . iddle 
 ground. They state their position as follows "Comparative prices in adver- 
 
 1 Taken from the pamphlet "Truth in Advertising" published in 1921 by the 
 
 national Vigilance Committee of the Associated Advertising Clubs of the World. 
 t , _Ijew York City. 
 
26 
 
 tising are one of the important subjects in the retail field, and many cases 
 handled "by Setter Business Bureaus involve their use. The I ruth- in- Advertising 
 movement is opposed to the abuse of comparative prices rather than tc their 
 legitimate use. If a concern uses comparative prices truthfully, it suffers 
 in having to meet the competition of the store down the street which uses them 
 untruthfully." This atti is shown by a perusal of the code of regulations 
 of one of the bureaus-*- which is typical cf the field. 
 
 ARTICLE II 
 
 "The object of this Bureau shall be to impartially promote and further 
 fair competition in business, especially including the investigation and elimina- 
 tion of all exaggerated, misleading or fraudulent advertising; and its purpose 
 is to promote truth in advertising. 
 
 ARTICLE V 
 
 "The Bureau in its investigation is to be guided as nearly as possible 
 by the following rules governing advertising: 
 
 "(a) Comparative prices and value statements used in store advertising 
 shall refer to the price of the merchandise of the day just previous to the 
 sale. The fact that the merchandise advertised may have actually sold just 
 previous tc the sale at the comparative price quoted, is no excuse for such 
 advertisement in the event that the comparative price or value does not reflect 
 the market value of the merchandise at the time of the sale. 
 
 "(b) The words 'value* or 'worth' when used in an advertisement 
 should mean the reasonable market price the article should bring at the time 
 of the advertisement, this to be determined by what the same, or similar article 
 is selling for in other stores at the time of the advertisement. 
 
 "(c) The phrase 'up to' when it is accompanied by a former maximum 
 selling price should also be accompanied by the former minimum selling price of 
 
 1 The Davenport .(lev; a) 
 
 Consumers Bureau. 
 
27 
 
 the ffierchanidse included in the sale. For instance: When the merchandise of- 
 
 fered includes oods for erly priced from $10 tc $22.50, the advertisement should 
 not read, 'Formerly priced Ui to $22.50, ' hut should read, ’Formerly priced 
 from $10 to $22.50.’ 
 
 "(d) 'Originally' c?nd 'Formerly' should mean the first price at which 
 the goods were marked in the advertiser's store during the current season. 
 
 "(e) 'Regularly' should mean the price prevailing before the sale in 
 the advertiser's store on the specific merchandise mentioned and the _rice that 
 will prevail on the same merchandise after the sale.' 1 
 
 Despite the growing sentiment against it, the use of comparative 
 prices has been unusually large daring the last two years - due, no doubt, to 
 the declining market . However, the leaders in the war on such statements have 
 not relinquished their stand and still refuse to quote former prices cr sup- 
 posed values. One such firm^ states its position in the matter as follows: 
 
 "It has long been the policy of this store to refrain from the common 
 practice of using comparative prices, as - 'Forth 212, our p rice, $0.75.' 
 
 "That this is an easy way to show a special value is obvious, but its 
 untrustworthiness in common usage is well known. Standards of value are very 
 elastic, and merchants not only seldom agree on prices, but are forbidden oy 
 Federal law to agree upon standard prices . 
 
 "Merchants have many opportunities to buy at the seller's loss, but 
 we hold it our function to share such op>p or tuni ties with the public, so the 
 sp-ecial price becomes our proper price. 
 
 "To mark an article higher than necessary for the sake of showing 
 a sharp reduction later is plainly a dishonest practice - it can succeed only 
 by deception - but there is no law to prevent it. 
 
 1 Marshall Field and Company. Taken from a letter to the writer. 
 
”Vvhen an article in open stock is reduced it imp lies a waning demand 
 at the former price, so its market value has changed. If the supply is limited, 
 or the reasons for the reduction hear no relation to the character of the mer- 
 chandise itself, than a reduced price may justly entitle it to he called a 
 
 'special value.' 
 
 "In any case, however, we find it less confusing, and more straight- 
 forward, to quote only one price, which, all things considered, we establish as 
 our standard price at the time." 
 
 The main argument for quoting comparative prices is that if a store 
 has a bargain to offer the public, the public should be informed and given all 
 the details. It is only fair to the public and to the store, Marshall Field’s 
 advertisements sufficiently answer this argument . They have held many cut-;, rice 
 sale 3 since abandoning that form of drawing trade and their sales have not 
 suffered in consequence. No former prices are ever quoted, but the customers 
 are told the quality of the goods ani the fact that there is a special offering 
 of them at this time. The present price is simply stated without stressing it 
 or putting it in glaring type. At t im.es, but very seldom, the statement is 
 made that this price is about half of that at which the article formerly sold. 
 That is the nearest reference ever made to the former price. There are many 
 ways of showing that a bargain is being offered without giving its former price 
 or value. In fact, it has sometimes been claimed that one of the greatest ad- 
 vantages in doing away with comparative prices is the educational value it has 
 upon the advertising manager, for henceforth he must make his advertisements 
 really attractive and readable rather than merely displays of comparative prices. 
 
 Beyond question comparative prices are used advantageously in some 
 forms of advertising. In stores where goods are sold u; on price appeal alone, 
 the listing of comparative rices probably attracts more trade than any other 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 ! 
 
 
 
 
 
 
kind, of advertisement possibly could. Even when the statements are not believed 
 the advertisement will draw customers, for, although the values are discounted, 
 the readers will often go to see for themselves what the value really is. It 
 is a well known fact, however, that customers appealed to by such advertising 
 are the kind that will net stick to a store but are easily drawn away by the 
 price inducements of other stores. It appears from a report of the Research 
 Committee of the Dallas (Texas) Advertising League^ that such advertising in- 
 fluences about fifty per cent of the consumers. A questionnaire sent out by 
 the committee included the question: "Do prices compared with one another appeal 
 
 to you...?" The answers received were for compared prices 210; against, 202, 
 Those against the compared prices believed neither price to be authentic or 
 reliable. Those for such statements qualified their preference about twenty 
 per cent of the time by saying that the reliability of the firm counted with 
 them. . 
 
 This is a point which cannot be stressed too much - the reliability 
 of the store is one of the greatest assets it has. Call it "Good Will," 
 
 "Going Concern Value’" or whatever you will, it amounts to the same thing and 
 is built up by fair dealings with the public. No one stops to question a state- 
 ment in a Wanamaker advertisement; it is accepted as true becau.se the store has 
 built up a wonderful reputation for reliability. On account of p-.ossessing this 
 reputation Wanamaker is able to quote comparative prices, but such quotations 
 are very scarce and extremely conservative. Conservatism is the main feature 
 of Wanamaker' s advertising and this element as much as anything else has helped 
 build the enviable reputation of the store. Few stores have acquired this 
 valuable prestige, but many aspire to it, even if on a 3mall scale. Any store 
 which aspires may help its case materially by dispensing with comparative price 
 statements. The process is a long one at the best, but the quickest way to 
 1 Quoted in Judicious Advertising, April, 1920, p. 62. 
 
30 
 
 attain the goal is to go in a straight line - ana tnis line is absolutely 
 ful advertising which merits the faith ox the public . lucpsrience has shov.n tha.t 
 the easiest means cf building up such faith is the elimination or she comparative 
 price which engenders i sunder standing. 
 
 The arguments against the quoting of such prices are: 
 
 1. They are not a true statement of facts even when prices are not 
 exaggerated. The fact that an article cnce sold ror the to^ price that -xes not 
 establish its value at that figure. Only half the facts are told and sometimes 
 that is worse than a plain misstatement . The price of an articxe is the resuxu 
 of various conditions in the market, and when these conditions change the price 
 changes accordingly. The fact that merchandise once sold at a high price is 
 no more reason to quote that price than to quote stock as cf the sans value it 
 had at its peak. If a broker quoted stock as $112 value for $67, he would be 
 laughed out of business, but the same thing happens every day in merchandising. 
 As one advertiser puts it:" "Vhen the fl.00 silk stocking started on its price 
 flight during the war, it had the grace and dignity to bear a $3.00 ticket; 
 but when the painful process cf deflation was applied, and the price became 
 $1.95 was it quite right to advertise it as $3.00 hose for $1.95? ” e recently 
 
 witnessed the price of the former $2,00 .ianhattan Shirt -armed down iron $5.o'j 
 to $ 3 . 50 . How should this fact' be presented to the public? Arc they $5. 
 shirt 3 ? It is our impression that they are now $3.50 shirts." 
 
 2. They are not believed by the public and thus influence the atti- 
 tude toward all other advertising put cut by the store. A large number cf 
 people do not believe comparative price statements and this argument is based up- 
 on that fact. The investigation of the Dallas Advertising League seems to show 
 that about forty per cent of the buyers do believe the quotations, so this is 
 not an argument which will hold in all cases. However, a store cannot afford 
 
 1 T alien from an advertisement of Stix, Baer and Fuller, which appeared in the 
 St. Louis Post-Dispatch, November 24, 1920. 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31 
 
 to ignore the sixty per cent who do not "believe the comparisons to "be true in 
 all cases. If the opinion is obtained that a store has "been untruthful in part 
 of its advertising, the entire advertising of the store, and, more important, 
 its ’’Good rill, ” will "be affected. 
 
 3. They put a good store into a poor class. Such quotations have 
 "been overdone, especially by the stores selling damaged or inferior goods and 
 catering to a cheap class of trade. As comparative prices are used in the ad- 
 vertisements of a great many stores, the general appearance is similar to the 
 advertisements of the class of stores mentioned above. This condition may be 
 remedied with care, however. The continuous use of such statements does class 
 a store as a rather sensational advertiser and so places a stigma upon its 
 prestige with the more conservative readers. 
 
 4. They are too often exaggerated and thus lead to unwarranted 
 statements. This is, no doubt, the principal reason why this form of advertising 
 is not more generally believed. Unscrupulous merchants have made great use of 
 comparative prices in order to attract trade, and there is no gainsaying the 
 fact that some of the reductions have been unbelievable. Even among merchants 
 who intend to be strictly honest it is a hard matter to check up on all the 
 statements made in a large advertisement comprising articles of every descrip- 
 tion. Of course it is possible to do so, but several of the stores which have 
 discontinued comparisons state that the difficulty of keeping them absolutely 
 true was the chief reason for discarding them altogether. Some of the higher 
 class establishments which strive earnestly for truth have printed announcements 
 of error in some of their former quotations and state that they are ready to 
 refund the purchase price tc any buyer who was mislead by the erroneous comparison 
 
 This shows what a difficult matter it is for even the most careful, 
 and those who are not so punctilious have many opportunities to err. The way 
 
32 
 
 those quotations have "been handled in the past has laced them in disrepute and 
 discredited their use at the present. 
 
 5. It is often hard to tell true values and this fact leads to mis- 
 statements also. When merchandise is bought at special prices for a sale or 
 when a new class of merchandise is brought in, it is often very hard to place 
 
 a definite value upon it. Usually it is valued according to some similar 
 article which is already in the store, but that is not always an exact basis 
 upon which to quote a price as differences in weave or style may make an en- 
 tirely different appeal to the public. It is almost impossible to place a true 
 value upon a large quantity of such goods and consequently misrepresentations 
 are common. Naturally, disappointment results and the advertising of the store 
 is hurt. 
 
 6. To keep up public interest in such bargains the values have to 
 be increased each time, and this leads to poor merchandising. The staple, 
 standard products, which form the basis of a store's prosperity, are neglected 
 and job lots of all sorts of irregular merchandise are secured for sales pur- 
 poses. Large discounts can be quoted cn this class of goods and the reduction 
 looks very larce while in realit 3 r there is no reduction at all . No store can 
 long subsist on this kind of merchandising alone; consequently, the result of 
 
 the unrestriuted use of comparative prices is detrimental to the best merchandis- 
 ing principles. 
 
 7. They defeat their own purpose in a period of falling prices for 
 they influence purchasers to hold off longer until prices drop more. This 
 argument is given in an article appearing in "Printers' Ink 1, entitled, "Nrice 
 Advertising in a Falling Market. " A The substance of the article is as follows: 
 
 There is a danger in using price comparisons if carried too far or emphasized 
 too much, for it is liable to make the consumer think that he has been the 
 
 1 Printers' Ink, 
 
 September 13, 1217, p. 121. 
 
33 
 
 victim of profiteering and also make him believe that prices are going to fall 
 still farther. Thus the very aim of advertising, which is to start the consumer 
 buying again freely, is liable to be defeated. It is a better policy to show 
 only the true value of the goods. 
 
 8. They tend to make the advertising copy drab and uninteresting. 
 
 It is claimed that the advertising manager falls into the habit of describing 
 the goods merely by quoting their former price rather than giving details about 
 them that make the cox^y interesting and hold the attention. It is an easy 
 matter to describe an article by giving its former price. Advertising anagers 
 who have given up the practice say that they did not realize how vouch they 
 relied upon comparative prices to furnish their descriptions until after they 
 step ed their use. Then it was necessary really to put some thought into the 
 copy and make it draw the attention of the casual reader. 
 
 The effect of discontinuing such advertising is told by hr. Sidney 
 H. Baer, of Stix, Baer and Fuller. He says:^ "This policy has now been in force 
 for almost a year, and our business has increased in greater percentage than in 
 any previous year of our history. It is true that conditions are abnormally 
 good, and this undoubtedly has something to dc with it; but even sc, had there 
 been any ill effects, it would have been noticeable in seme instances. Our big 
 sales have been bigger than ever. 
 
 "The elimination of comparative prices is of great benefit to a de- 
 partment store or specialty house, not only because it undoubtedly increases 
 the confidence of the public in a store (as was evidenced in our case by hundreds 
 of letters received from customers congratulating us u on cur progressive move), 
 but unconsciously decreases the number of 'sales’ and 'supposed to be sales' 
 held - a form of business getting which has been greatly overdone during the 
 past decade." 
 
 1 Printers' Ink, i ember 13, 1917, p. 131. 
 
34 
 
 The use of comparative prices in national advertising takes a slightly 
 different aspect. There the problem is not one of temporary reduction to get 
 rid of surplus stock, but is one of a reduction of a single article, which is 
 thoroughly known to the public, to meet changing economic conditions. In 
 national advertising the price is more closelj/ associated with the intrinsic 
 value of the article and the relation of price to value is more easily determined. 
 Reductions in prices are necessarily fewer in number and therefore constitute 
 real news for the consumers. Generally the new price is the thing stressed and 
 net the reduction. There can be no exaggerated statements, for the former prices 
 are definitely known and there is no question felt concerning their veracity. 
 
 The free use of comparative prices may have the effect of causing some prospective 
 customers to hold off a while for a further drop, but on the other hand, a large 
 number of buyers are drawn in immediately because of the novelty of the price. 
 
 One effect which is hard to eradicate is the belief that the product is being 
 cheapened in quality. This is a problem for the bod;/ cf the advertisement to 
 settle, however. 
 
 The problem takes on another aspect also in the handling cf price tags 
 and window display c-m. This is largely a matter of store . - - *ence. If 
 comparative prices are used in the newspapers the same general scheme should be 
 carried out throughout the store, but if they have been eliminated it then be- 
 comes a matter of store policy how far they should go. Window displays may be 
 taken as a supplement to the regular advertising and the best policy seems to be 
 to follow the same custom. If comparisons are eliminated in the newspapers and 
 still continued in the window displays it is likely 10 create unfavorable com- 
 ment as it seems to be inconsistent, to say the least. On the other hand, the 
 price tags on the goods themselves are not supposed to be for general display 
 outside the store and the original tags may be left on the goods and marked 
 
35 
 
 down. Marhsall Field's follows this practice. There is one disadvantage to 
 it, however, The customers are liable to look over the goods to find. the one 
 with the highest price and then buy that. This will cause a great deal of 
 "shop wear” and may result in some disappointed purchasers. Usually those goods 
 with the lowest price tags are left to the last. Strict consistency would seem 
 to demand that the former price tag be eliminated also, but as a matter of fact 
 it is so closely connected with the goods themselves that this inconsistency 
 does not appear obvious. However, nothing is lost by the elimination of the 
 former price on the tags. 
 
35 
 
 III ODD .PRICES 
 
 In advertising the copper cent cones into its own and assrn.es an im- 
 portance which it can never hope to attain over the retail counter. Buyers who 
 wovdd consider it Beneath their dignity to "quibble ov ar a few pennies” with the 
 retail clerk will minutely compare the prices advertised in the local paper, and 
 woe Be to the store which is selling sugar one cent a pound higher than its com- 
 petitor. The tendency to compare the prices of various stores also leads to the 
 comparison of the stated price with some other price in the Buyer's mind. This 
 fact is the cause of the pulling power of odd prices, for whether any redaction 
 is claimed or not 83 cents almost invariably suggests a mark-down from Tl. JO, 
 while 11.93 suggests $2.00, $2,50 or $3.00, depending upon the imagination of the 
 reader. The statement of an odd price generally. implies a reduction and the mind 
 
 tries to grasp the previous figure. 
 
 During the recent war, when prices were advancing rapidly, the odd 
 price was nothing But a mark-up and did not pretend tc Be anything else; 12 and 
 13 cents signified a former price of 10 cents, nven under such conui ^icn^, mow- 
 ever, the odd price was considered preferable to an even price which was thought 
 to Be higher - in this case 10 cents was often considered as a mark-up from a 
 nickle . Under normal conditions the hint of a mark-up casts an odium upon certain 
 
 figures which makes them unsuitable for use; thus 2? cents seems to oe a ir.arm.-up 
 from a quarter and probably more goods could Be sold if the price were placed at 
 
 25 or 30 cents. 
 
 Tc Be odd, a price does not necessarily have to Be quoted in odd 
 cents; 012 • *5 is an odd rice as is $lo95 also, -he t ind creates . on. 
 values into convenient units which are easily remembered and calls _ rices dealing 
 in such units even or regular, while all others are od. • -he units will varj 
 greatly with the amount of the price and no set rule can Be easily formulated as 
 

 
3 ? 
 
 the practice cf calling prices even cr odd varies son.ewhat at ong the different 
 
 trades. 
 
 Formerly odd prices were used almost exclusively by mail-order houses, 
 department stores, and chain stores, but at the present time they are used in 
 practically every field of retail selling. They have come to be the symbol of 
 the bargain sale cr the cut-price dealer. It is sQT.ietir.es humorously said that 
 a certain class of our retail merchants cannot express themselves in round num- 
 bers but must say "three ninety-eight" instead of "fore" on the golf course. 
 
 Their use has been frequently ridiculed and freely criticized but nevertheless 
 they continue to draw trade as much as, or more than ever, hail-order catalogues 
 abound with such figures, in fact it is hard to find an even rice within their 
 covers. They have even invaded the field cf the more expensive articles and now 
 automobiles are almost invariably listed at an odd figure. Whereas in the early 
 days of the rotor car the prices ran "1,000, $1,250, 1,500, $2,0 00 and sc on, 
 
 at the present time they read $985, $1065, $1345, $3185, etc. One of the most 
 recent converts is a large hotel in Chicago,^ which advertises rooms at $1.95 
 and $2.45 a day. 
 
 The almost universal use of odd prices by the automobile manufacturers 
 is rather hard to explain; the figures are hard to remember and generally give 
 very little basis for a comparison with some higher price. Possibly the idea is 
 to create a distinctive price as very few automobiles bear the same quotations. 
 
 An odd figure also seems to indicate that the price has been laced as low as 
 possible and is only slightly above cost of production. Where this is the case 
 it is advantageous to both the producer and the consumer for the former makes a 
 Just profit, while the latter obtains the article at a fair price. 
 
 1 The Fort Dearborn Hotel. 
 
3b 
 
 The psychology of the odd price is peculiar, not infrequently the 
 saine article will sell inore readily at a nigher odd price than at tne standar a even 
 amount. For example, a product which t. oves slowly at 75 cents ..ay be u.arxe.i ao 
 79 cents and sell rapidly; regular dollar articles that remain on the shelves 
 may sell out in a day when listed as $1.19. The use of odd prices does not al- 
 ways guarantee sales, however, and if quoted in profusion they may do more detri- 
 ment than good. They are usually considered an indication of cheapness and con- 
 sequently are not in harmony with a quality appeal. .lOreover, a ce:t.^j.n cl^o; 
 of shopvers has an adversion to ■'uneven prices, so the best results are obtained 
 
 when they are used sparingly. 
 
 The question of the optimum price is an important one and well worth 
 a scientific study, but very little has been done in that field. The large de- 
 partment stores and mail-order houses ordinarily follow ^:-e custom oj. a.1 lowing 
 their buyers full authority in pricing the goods for sale, ho standard policy 
 is used; sometimes a definite per cent of mark-up is used, while in other cases 
 the figure is arrived at arbitrarily. 'One of the few experiments made to deter- 
 mine the preference for certain prices was given to /ringer s' Ink oj a cor- 
 respondent signing himself "F. '£. V.’. " He writes: 
 
 "... During an experience of years in running the catalogue end of 
 a business,..., my associates and I made numerous experiments m the realo oj. 
 
 price psychology* Being fearful at first of quoting prices on certain classes 
 of articles, usually priced in twenty-five-cent units, in oda cents, such as 
 48 cents, S8 cents, $1.49, etc., we tried breaking prices in five-cent units, 
 quoting 95 cents, 90 cents, 45 cents, 55 cents, ,1*35, $3. .5, etc. e found, 
 among other things, that 35 cents, 40 cents and 85 cents were excellent odd 
 prices; 45 cents, 60 cents, 65 cents and 95 cents, were not so good, though usable, 
 but that 55 cents, 70 cents, 80 cents and 90 cents seemed to scare the public in 
 1 "The Advertised Price and the Public." Printers' Ink, June 20, 1918, p. 33. 
 
many cases. They seemed not to have any standard of value to i ensure against 
 these prices; they were bewildering. 
 
 "Our discovery of the success of the 85 cent price solved a problem 
 that had been bothering us for some time in connection with one of the higher 
 grade departments of the catalogue. This problem was what to do about articles 
 that cost just too much to sell for 75 cents at sufficient profit, when mailing 
 and packing costs were considered, and yet were not worth a dollar..., 
 
 "Of course in certain departments of our catalogue, which I repeat 
 was a very high-grade one going to a select .ailing list, five-cent . rice units 
 had always been used, for they conformed to the ^rade practice in those lines. 
 
 But in these departments we again broke with the traditions of the trade and began 
 experimenting in odd cents - 23 cents, 4S cents, 98 cents, 99 cents, $1.19, etc. 
 
 "It may interest other mail-order advertisers to learn the conclusion 
 we came to in connection with these prices: We decided after trying all sorts of 
 odd prices, that anything less than a two-cent reduction seemed like a bait and 
 not like a genuine penny-saving reduction. I cannot s :.y that we learned this 
 from sales corves, or anything so definite, but we certainly ’felt' it before we 
 had operated long with odd prices, and we did away with 24 cents, 49 cents and 
 95 cents, and all prices of a dollar or more ending in these figures. But we 
 found 23 cents, 43 cents and 38 cents very good and continued to use them regular- 
 ly, but not too freely. Not only doss an overdose of cot prices make people sus- 
 picious, but it loses to the catalogue the benefit of the contrast between 98 
 cents and $1.00, and 48 cents and 50 cents which contrast is what makes the odd 
 price effective. To overdo the odd price is, in effect, to kill the goose that 
 lays the golden eggs. 
 
 ”... While we found that in certain departments of our particular cat- 
 alogue 55 cents, 70 cents, 80 cents and 99 cents seemed to be bad prices, these 
 


 
 
 
 
 
 
 4C 
 
 units after $1.00 or $2.00 (and up), such as $1.70, $4.90, etc ., ware not necessarily 
 objectionable . Their aspect seemed often to change in such cases and make them 
 lock very bar gain- like. For instance, $3.55 may look like a lower price in con- 
 nection with some certain article than 33.50. Round numbers seer:, to have a 
 tendency to look big when the price gets up into several dollars. 
 
 "After ail, making right prices, like writing good advertiser ents, is 
 a matter of getting away from the goods and projecting oneself into the irrespec- 
 tive purchaser's mini and looking at your own catalogue or counter through his 
 or her eyes. You may know yourself that such ar.d such an article is a genuine 
 bargain at a given price - even that you are losing money on it - but your say- 
 ing it is a bargain will have far less selling force than making the price look 
 the part, not by always mechanically falling back on 43 cents or SS cents, etc., 
 but by making the price look reasonable or low in connection with the particular 
 article featured. 
 
 "There is one thing I have observed, however, and it is this: that 
 the man who goes about this pricing business with his tongue in his cheek, clever- 
 ly working with odd prices and thinking that he has discovered a scientific system 
 for fooling the public, soon finds that the public is much wiser than he thought 
 
 for .... " 
 
 An experiment conducted in the psychology laboratory of the University 
 of Illinois to determine the preference for certain numbers obtained results which 
 corresponded well with those just given, although there were cases where the dif- 
 ference was marked, numbers from 1 to 100 were used and paired in various 
 sequences; they were then expos -.l to the observers in a Fhip le tachistoscope for 
 a period of 1/200 cf a second. The observers were asked to write down their 
 preferences, talcing one number from each pair as it was shown. The numbers were 
 shifted about and the experiment repeated several times. The observers showed 
 
41 
 
 decided preference for the numbers 5, 10, 20 and 50. Others numbers which were 
 good were: 1, 2, 4, 8, 11, 39, 41, 45, 48, 49, 59, 77 and 79. 70 and 90 were 
 
 fair. The numbers which were found poor were 4, 7, 9, 18, 23, 52, 67, 59, 71, 
 
 97, 30 and especially 50 and 80. 
 
 V/hile this experiment was intended to show the preference for certain 
 numbers rather than prices, the results are important in connection with the 
 problem of pricing as well. Those numbers for which a preference was shown are 
 the best ones to use as prices for they attract the attention readily and create 
 a pleasing impression. The numbers for which there was a decided laci: of prefer- 
 ence should be avoided as much as possible in pricing goods. The two numbers, 
 
 50 and 80, are notoriously bad prices and are seldom used in that capacity. How- 
 ever, some articles are priced with these figures, and then the erchant wonders 
 why the goods do not move faster. These numbers are not an infallible rale to 
 follow, but they do show a choice for certain figures which cannot be entirely 
 overlooked. 
 
 One of the important points which must be considered when uneven 
 prices are used freely is the appearance which they make upon the page. There a 
 large number of such prices appear together it is a good policy to have quite a 
 variety and range. Thus talcing a page from a mail-order catalogue where women’s 
 suits are offered for sale there may be twelve different models. The prices on 
 these should have a range of several dollars and not imore than one or two should 
 end in the same number of cents, say 42 or 65 cents. 
 
 Another point which has been found to influence sales is the arrange- 
 ment of the articles on the, page. Talcing the same mail-order page for example 
 and assuming that the prices run from £3.45 to $13.70 with the model which the 
 firm wishes to push most priced at $3.90, the best results will be obtained by 
 
 placing the $6.45 model close to the one at $9.90. This model is c the 
 

 
 I 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
42 
 
 "beginning number" as it is the lowest priced on the pa/ e and it begins the price 
 range* Of coarse the feature model . 9.90 is given good position and generally 
 a border p laced about it; but the comparison with the beginning rice is the thing 
 which brings the results. Most people like to buy a little better then the cheap- 
 est article. 
 
 In dealing with odd prices the thing to be most avoided is the appear- 
 ance of a mark-up; the nature of the fig-ore may show a raise as well as a decline. 
 Thus 25 cents seems to be 25 plus 1, while 57 cents appears to be made up of 65 
 and 2. It is best to drop a cent or two from an even number and thus ke 
 appearance of a reduction. It is little things like these that influence the 
 attitude of the public toward a store. 
 
4-3 
 
 IV STATISTICAL DATA. 
 
 In order to determine the effect of business conditions upon the 
 quoting of prices in advertisements, and also to ascertain if there had been any 
 definite trend in their use, an historical study was made of the advertisements 
 appearing in the Saturday Evening Post over a period of thirteen years. As the 
 task would be monumental to count all the advertisements published during that 
 time, the months of Hay and June were taken as being typical of the advertising 
 for the entire year. These months were selected because they represent the con- 
 ditions of the spring trade and yet are late enough to show the tendency of the 
 entire year. The Saturday Evening Post was selected ever all other publications 
 because it best represents the national advertising conditions of the country. 
 Practically all lines of goods are included in the advertising on its pages. It 
 is a general magazine which appeals to both men and women of all classes and its . 
 circulation is both large and widely distributed. It has come to be the standard 
 advertising medium of nationally sold products. 
 
 Of course this work with the Saturday Evening Posts embraced only 
 national advertising, but such copy would reflect the business conditions of the 
 nation better than local advertisements. To Chech up on any changes in the style 
 or character of price statements a large number of local newspapers was used, but 
 no effort was made to keep a record of the per cent age of advertisements quoting 
 prices in such publications. As would be expected, prices are much more prevalent 
 in local advertising as it is closer to the consumer. In other respects the local 
 copy follows closely the changes in the national. 
 
 In making the study of the advertising in the Saturday Evening 
 Posts no distinction was made in the size of the advertisement, all were counted 
 equally; but there were some exclusions made which should be noted. The advertise- 
 

44 
 
 Kent s appearing on the tack of the magazines were not counted, as they represent 
 more the poster style of advertising than the magazine style. ITo advertisements 
 for salesmen were considered for obvious reasons. The announce: sent s of education- 
 al institutions were also eliminated as they do not serve quite the same purpose 
 as do advertisements which sell goods; the product they strive tc sell is intang- 
 ible and cannot be classed with a manufactured article. Generally the advertise- 
 ment merely advises the reader tc write for a catalogue in order to obtain further 
 information; it does net go farther and strive to complete the sale at that time. 
 Then, such advertisements appear but once or twice a ye or , once in June and again 
 in August or September, so it would not be quite fair to count them in with ad- 
 vertisements appearing steadily throughout the year. Advertisements of a similar 
 nature, those selling a service rather than a product - such, as these which sell 
 legal service in securing patent rights - were left out also. The total of all 
 these is not considerable when taken in connection with the amount remaining, but 
 it is necessary to mention them here in order to get a clear understanding of the 
 advertising which goes to make up t’* e tables. 
 
 All the advertisements were divided into five classes according to 
 the products advertised. These divisions were for copy which advertised, (l) 
 automobiles, (3) wearing apparel, (3) household articles and food products, ( 4 ) 
 automobile accessories, and (5) miscellaneous products not previously classified. 
 The tabulation was made according tc whether the advertisement included a price 
 or not. If more than one article was listed in the sane advertisement the entire 
 group was considered as a whole and counted as only one advertisement. 
 
 For purposes of graphical representation it was found best tc take 
 the percentages of advertisements whicl did not quote prices. These percentages 
 are given by years for the various classes of products chosen and for all advertise 
 rnents together, he separate percentages ere given for the miscellaneous proc 
 

 
 
 
 
 
 
 
 . 
 
 
 
 . 
 
 
 
 
 
 
 
 
 
 . 
 
 
 
 
 
 
 
 
 
 . . 
 
 
 
 
 
 
 
 
 
 • 
 
 
 
 
 
 
 
 
 . 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
45 
 
 ■because they are so varied in nature that comparisons would not indicate anything 
 specific which is not shown by the percentages for all advertisements. They are 
 included in figuring the perc es for all advertisements, however. Tie table 
 
 follows : 
 
 Percentages cf Advertisements Appearing in the Saturday Evening 
 
 Post 
 
 '’hie 
 
 h do not 
 
 Inc] 
 
 .ude Price State’ 
 
 ent s . 
 
 
 
 
 Year 
 
 
 Aut ernob : 
 
 Lies 
 
 Tearing 
 
 Household 
 
 Ant omob i 1 
 
 a 
 
 All advertise 
 
 
 
 
 
 Apparel 
 
 Articles 
 
 Accessor i 
 
 9 S 
 
 ment s 
 
 1910 
 
 
 42 
 
 
 23 
 
 50 
 
 83 
 
 
 45 
 
 1911 
 
 
 33 
 
 
 27 
 
 45 
 
 79 
 
 
 47 
 
 1912 
 
 
 39 
 
 
 22 
 
 54 
 
 72 
 
 
 55 
 
 1913 
 
 
 17 
 
 
 16 
 
 47 
 
 76 
 
 
 47 
 
 1914 
 
 
 13 
 
 
 IS 
 
 46 
 
 64 
 
 
 4-1 
 
 1915 
 
 
 13 
 
 
 17 
 
 50 
 
 48 
 
 
 43 
 
 1916 
 
 
 IS 
 
 
 25 
 
 53 
 
 54 
 
 
 50 
 
 1917 
 
 
 15 
 
 
 43 
 
 54 
 
 53 
 
 
 52 
 
 1918 
 
 
 63 
 
 
 55 
 
 59 
 
 30 
 
 
 51 
 
 1919 
 
 
 55 
 
 
 SO 
 
 54 
 
 84 
 
 
 71 
 
 1920 
 
 
 93 
 
 
 81 
 
 79 
 
 34 
 
 
 83 
 
 1921 
 
 
 59 
 
 
 75 
 
 68 
 
 74 
 
 
 71 
 
 1922 
 
 
 29 
 
 
 54 
 
 64 
 
 50 
 
 
 59 
 
 
 
 The 
 
 se p 
 
 er cent ages are si 
 
 ■own by graph 
 
 s on the accompany] 
 
 ng charts. 
 
 Chart 
 
 I s' 1 ' 
 
 ows the 
 
 four 
 
 classes of spec: 
 
 .fic products 
 
 compared, whi 
 
 le Ch 
 
 art II com- 
 
 pares 
 
 the 
 
 graph of 
 
 all 
 
 advertisements v 
 
 irith Tab son's 
 
 barometer of 
 
 busir 
 
 ess condi- 
 
 tions. 
 
 As will he seer, by Chart II there 
 between the business barometer and the number of 
 
 is a remarkable resemblance 
 advertisements which do not 
 
43 
 
 cnaote rrices. T"- i s similarity shows conclusively that the use of prices pretty 
 regularly follows the business cycle; when conditions are poor and buying is 
 slack prices begin to appear in profusion, but when conditions improve and the 
 public comes into the market without being urged the large national advertisers 
 keen the price in the background. This condition is ■ irrored in the local ad- 
 vertising as well. Thus we may draw the conclusion: In a buyers' market quote 
 
 prices; in a sellers' market let them alone. 
 
 These charts substantiate the contention that the statement of 
 prices does stimulate buying. Under conditions where the seller does not need 
 to worry about his purchasers he does not go cut after them; but such conditions 
 are rare, ’"here competition is keen, the statement of p rices is one of the 
 quickest ways to draw trade. 
 
 Of course a sellers' market is one in whicn the price is contin- 
 ually rising and this is another reason why prices are left cut. He one li.ee s 
 to be the bearer of bad news and the advertisers are no exception. They pass 
 along the telling to the retailer who can net dodge the responsibility, ’hen 
 unices are tumbling the advertisers flaunt the fact, however. 
 
 The rise in the percentage of advertisements not quoting prices 
 is especially noticeable in the graphs of automobiles and wearing apparel, those 
 products in which the most ranid and far-reaching advances took place during the 
 
 period of the war. 
 
 TT „ 1 
 
 line snows 
 
 trend unmistakably, but it is net ac- 
 
 centuated to the degree that it is in the higher rice l articles.- These two lines 
 were the ones in wl icl ' e gi eatest buying fever occurred also. 
 
 A stud;/ of the graph representing all classes of advertiser ents 
 reveals a slight rise in the percentage not quoting prices for the year 1912, 
 without a corresponding rise in the Babson chart. This year marked .. distinct 
 change in the character of the advertising copy, due to the introduction of a 
 
47 
 
 greater an ount of institutional advertising; consequently th< 
 sicnal rather than economic. Erom that year on institutic 
 a major role in national advertising. 
 
 Another feature of the copy which has become : 
 fest is the clear-cut statement of prices. Whereas the gric- 
 hidden away in small type, some 'lace within the confines of 
 the present time they are placed separately and often given • 
 positions. 
 
 : cause is profes- 
 ccTiy has occu; ied 
 
 ncreasingly n.ani- 
 :s were formerly 
 the "talk, " at 
 ■he roost prominent 
 
1910 'll '12 '13 >14 '15 '16 '1? '13 '19 ' 
 
 O J 
 

 
 
 
 
 
 
 
 
 
 , 
 
 
 
 
 
 
 
 
 
 
cXX o 
 

48 
 
 bibliography. 
 
 Chor inset on, ’’Advertising as a Business Perce”, g. 15 
 De Weese, ’’Practical Publicity”, p. 104. 
 
 Edgar, ”Eow to Advertise a Pet ail Store”, pp. 21, 33, 51. 
 
 Fowl er , ’’Fowl er ' s Pub 1 i ci ty " . 
 
 Gale, ”0n the Psychology of Advertising”. 
 
 Me aland, ”Effective Store-Advertising’.’. 
 
 McDonald, ”Succe ssfv.1 Retai - ' Advertising”, pp. 15, 145. 
 
 McDonald , "Shcceesful Advertising”, p. 9, 117. 
 
 Mattress, ”How a Retail Merchant Shoi 1 d Advertise”, p* . 4, 41. 
 
 Opdycke, ’’Advertising and Selling Practice”, p. 181. 
 
 Osbcrn, ’’Brass Tacks cf Advertising”, . 47. 
 
 Russell, ’’Advertising Methods and Mediums”, p . 355. 
 
 Peri odic als 
 
 Printers’ Irk: 
 
 September 13, 1017, p. 121 - ' y Comparative Brices Must Go.” 
 
 May 23, 1513, p. 10 - "The ’ Thy ’ of Odd Prices in Catalogues-” 
 
 June 20, 1918, p. 33 - "Toe Advertised Price and the Public.” 
 September 1G, 1920, p. 41 - "How Much ’Bill It Cost? Does Your 
 Advertising Tell?” 
 
 I'Tov ember 4, 1920, p. 182. 
 
 ITov ember 18, 1920, p. 3 - "Is It Time to Advertise “’rice as ’’’ell 
 as Product?" 
 
 December 23, 1920, p. 41 - "Then to Advertise the “'rice.” 
 
 January 27, 1921, . 41 - ”B hasize Pric s Mm; Sell 3 ent . 1 
 

 
 
 
 
 
 
 
 
 
 
49 
 
 o uary 2 / , 1921, p« 114 - "Would Advert i sed Priced Help Break 
 the (Strike?” 
 
 February 10, 1921, p. 41 - "V ' advertising Means tc he.” 
 February 17, 1921, p. 170 - "Price Advertising on Increase." 
 April 23, 1921, p. 57 - "Your Prices to he." 
 
 ...ay 26, 1221 , p. 141 - "Pee s a Quality Article Suffer Loss of 
 Dignity Then Priced?" 
 
 Judicious Advert i sing : 
 
 June, 1920, p. 61 - "Questionnaire Investigation Tests Efficiency 
 o f Ad v e r t i s i r.g . "