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Determinants of in-store price knowledge for packaged products: An empirical study in a Chilean hypermarket

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  • Olavarrieta, Sergio
  • Hidalgo, Pedro
  • Manzur, Enrique
  • Farías, Pablo

Abstract

Understanding variations in shopper price knowledge is important to academics identifying their sources, and to retail managers whose pricing strategies may depend on the extent of shopper price knowledge (or lack of) within the items they manage, since price knowledge is an important driver of item choice. This paper examines the influence of product and shopper factors on shoppers' in-store price knowledge for packaged food products in a sample of 585 shoppers in a Chilean hypermarket. Shopper self-report of price-comparison activity, non-purchase of bundle products (packs), in-store and out-store price signs, and item's price show positive correlations with consumers' in-store price knowledge. The paper finds variations of in-store price knowledge antecedents by segment. In particular, the effect of price signs is significant in the female sample, while the effect of shopping frequency is significant in the male sample. Further research may focus on understanding these differences. The paper discusses the study implications for retailers and manufacturers.

Suggested Citation

  • Olavarrieta, Sergio & Hidalgo, Pedro & Manzur, Enrique & Farías, Pablo, 2012. "Determinants of in-store price knowledge for packaged products: An empirical study in a Chilean hypermarket," Journal of Business Research, Elsevier, vol. 65(12), pages 1759-1766.
    • Handle: RePEc:eee:jbrese:v:65:y:2012:i:12:p:1759-1766
    DOI: 10.1016/j.jbusres.2011.10.035
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    Cited by:

    1. Richard Chinomona, 2015. "The influence of Perceived Hypermarket Size on Perceived Hypermarket Reputation, Trust and Customer Willingness to Purchase in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 7(4), pages 60-70.
    2. Mendoza, Xavier & Carneiro, Jorge, 2012. "Introduction to the special issue of best papers Business Association of Latin American Studies 2010," Journal of Business Research, Elsevier, vol. 65(12), pages 1749-1751.
    3. Linzmajer, Marc & Hubert, Mirja & Hubert, Marco, 2021. "It’s about the process, not the result: An fMRI approach to explore the encoding of explicit and implicit price information," Journal of Economic Psychology, Elsevier, vol. 86(C).
    4. Farías, Pablo, 2015. "Determinantes do sucesso de marcas globais e locais na América Latina," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 55(5), September.
    5. Farías, Pablo, 2019. "Determinants of knowledge of personal loans' total costs: How price consciousness, financial literacy, purchase recency and frequency work together," Journal of Business Research, Elsevier, vol. 102(C), pages 212-219.
    6. Valenzuela, Leslier & Torres, Eduardo & Hidalgo, Pedro & Farías, Pablo, 2014. "Salesperson CLV orientation's effect on performance," Journal of Business Research, Elsevier, vol. 67(4), pages 550-557.
    7. Pablo Farías, 2020. "The Use of Fear versus Hope in Health Advertisements: The Moderating Role of Individual Characteristics on Subsequent Health Decisions in Chile," IJERPH, MDPI, vol. 17(23), pages 1-15, December.
    8. Manuel Alonso-Dos-Santos & René Quilodrán Ulloa & Álvaro Salgado Quintana & Diego Vigueras Quijada & Pablo Farías Nazel, 2019. "Nutrition Labeling Schemes and the Time and Effort of Consumer Processing," Sustainability, MDPI, vol. 11(4), pages 1-10, February.

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