How and why Consumers Remember Price Information


Advances in Consumer Research

2002, vol. 29, pp.142-144

Départements : Marketing, GREGHEC (CNRS)

In 1990 Dickson and Sawyer published their now classic study on consumers' knowledge of prices for frequently purchased consumer goods. It received a lot of attention because the level of price knowledge observed was unexpectedly low in light of previous modeling work of price effects and especially compared to what reference price research (Kalyanaram and Winer 1995) had suggested (see Monroe and Lee 1999 for a comparison). In reaction, several authors raised the question of how reference price models can Asignificantly predict brand choice if actual market prices are often not noticed or remembered by consumers@ (Urbany and Dickson 1991, p. 51). The importance and relevance of Dickson and Sawyer's work motivated several replication studies that all confirmed the original results (e.g. Le Boutillier, Le Boutillier, and Neslin 1994; Wakefield and Inman 1993). Thus, the debate between reference price researchers and knowledge survey researchers remains unresolved. The first group took the glass half full perspective and focused on those consumers that do exhibit accurate performance in the in-the-aisle surveys, while the second group looked at the empty half of the glass and stressed the importance of the consumer segment that does not know prices.