Do consumers really know if the price is right ? Direct measures of references price are their implications for retailing

Reference price research suggest that consumers memorize and recall price information when selecting brands for frequently purchased products. In this study, we show that previous price-knowledge surveys provided imperfect estimates of reference price. Further, we propose to use a combination of price recall, price recognition, and deal recognition to measure representations to memorize prices. In addition we identify consumer and product characteristics that explain the variations in price knowledge.price knowledge; reference price; retailing

Consumers' immediate memory for prices

In this article, the authors examine the cognitive mechanics involved in keeping prices in short-terme memory for subsequent recall. Consumers code and store prices verbally, visually, and in terms of their magnitude. The encoding used influences immediate recall performance. The memorability of prices depends on their verbal length, usualness and overall magnitude. They find that the performance of consumers recall prices better than what previous digit span studies with simple numbers have suggested.consumer behavior; numerical cognition; price memory

Les effets persuasifs de l’e-publicité perçue « sans conscience » en vision périphérique

À l’aide d’une expérimentation, nous montrons que des messages publicitaires sur l’internet apparaissant dans le champ visuel périphérique provoquent des effets favorables sur les jugements et les intentions d’achat des marques publicisées, alors que les récepteurs n’ont pas « conscience » qu’elles sont entrées dans leur champ visuel. Nous étudions également l’évolution des effets cognitifs et attitudinaux huit jours après l’exposition. Pour démontrer ces influences de manière rigoureuse, nous avons conçu une méthode de présentation contingente couplant une caméra filmant les mouvements oculaires et un système informatique faisant automatiquement disparaître les bannières publicitaires dès que le regard de l’internaute se déplace dans leur direction. Après avoir proposé une explication quant aux processus socio-cognitifs impliqués dans l’influence, nous ouvrons de nouvelles perspectives pour la recherche sur la réception de la communication médiatique.Using an experimentation, we show that e-advertisements appearing in the peripheral visual field cause favorable effects on brands judgments and on intention of purchase whereas the receivers are not aware that they appeared in their visual field. To investigate these effects in a rigorous way, we used a method of contingent presentation coupling a camera filming the ocular movements and a computer automatically hiding the advertising banners when the gaze of the Net surfer was directed in their direction. After having proposed an explanation for the socio-cognitive processes underlying the influence, we open new prospects for research on the reception of the media communication

Do Consumers Really Know if the Price Is Right? Direct Measures of Reference Price and Their Implications For Retailing

authors thank the HEC Foundation for its financial support, and Shantanu Sutta and Gilles Reference price research suggests that consumers memorize and recall price information when selecting brands for frequently purchased products. In this study, we show that previous priceknowledge surveys provided imperfect estimates of reference price. Further, we propose to use a combination of price recall, price recognition, and deal recognition to measure the degree to which consumers use auditory verbal, visual Arabic, or analogue magnitude representations to memorize prices. In addition we identify consumer and product characteristics that explain the variations in price knowledge. 2 There exists a large body of empirical evidence showing that, when making brand choices for packaged consumer goods, consumers compare observed prices to so-called reference prices they supposedly have in memory (cf., Winer 1986, or Kalyanaram and Winer 1995 for a review). Different models of reference price have been validated in the past and, in a comparison of the most common model formulations, Briesch et al. (1997) found that the best performing model is one that includes brand-specific reference prices, represented as a moving average of the pric

Measuring the price knowledge shoppers bring to the store

Reference price research suggests that consumers memorize and recall price information when selecting brands for frequently purchased products. Previous price-knowledge surveys, however, indicate that memory for prices is lower than expected. In this study, we show that these priceknowledge surveys actually provided imperfect estimates of price knowledge because they focused only on recall and short-term memory. We propose, instead, to use a combination of price recall, price recognition, and deal recognition to measure the degree to which consumers use auditory verbal, visual Arabic, or analogue magnitude representations to memorize prices. We show how the combination of these three measures provides a much richer understanding of consumer’s knowledge of prices. Our results suggest that the price knowledge involved in reference prices may often not be accessible to recall but shows up in price recognition and deal recognition. In addition we identify consumer and product characteristics that explain the variations in price knowledge. We find, for instance, that frequent promotions increase the ability of consumers to remember regular prices and that store switchers do not possess a better price knowledge than other shoppers. Consumers have a strong interest in keeping a knowledge base of prices for products the

Consumer Behaviour Application In Marketing

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