In the future, the government of Indonesia will launch the redenomination policy that cut the number of zeros of the Rupiah currency into three-digit. This study attempted to look at the effect of reducing the number of zeros in which will be displayed in price tags. The money illusion were measured through the willingness to pay (WTP) score. Participants are students of the Faculty of Psychology Syarif Hidayatullah State Islamic University of Jakarta (N = 136). The results of this study found that there are effects of the number of zeros onto the WTP (F (3.132) = 3.235, p <0.05), but the degree of influence varies in each type of treatment. This research is intended to contribute to the policy making process, policy makers, market participants, and the Indonesian consumers, in response to the redenomination plans.
|Publication status||Published - 2012|