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Opposing effects of sociodemographic variables on price knowledge

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  • Charlotte Gaston-Breton
  • Priya Raghubir

Abstract

This paper examines the impact of sociodemographic variables (age, income, and occupation) on price memory. We argue that these variables may exert opposing effects on ability and motivation to process price information, explaining why prior literature has found inconclusive effects of sociodemographics on price knowledge. To tease apart the influence of ability and motivation on price processing, we report the results of a field experiment among 683 shoppers manipulating an ability-related variable (familiar or unfamiliar currency) and a motivation-related variable (normal or 50 % higher prices), and we measure willingness and accuracy to recall and recognize prices as a function of consumers’ age, income, and occupation. We find that consumers with the sociodemographic drivers of lower ability but higher motivation (older, less affluent, and lower occupational categories) have worse price memory, especially when the prices are expressed in an unfamiliar currency (the ability-related manipulation). Copyright Springer Science+Business Media, LLC 2013

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  • Charlotte Gaston-Breton & Priya Raghubir, 2013. "Opposing effects of sociodemographic variables on price knowledge," Marketing Letters, Springer, vol. 24(1), pages 29-42, March.
    • Handle: RePEc:kap:mktlet:v:24:y:2013:i:1:p:29-42
    DOI: 10.1007/s11002-012-9201-6
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    References listed on IDEAS

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    1. Carolyn Yoon & Gilles Laurent & Helene Fung & Richard Gonzalez & Angela Gutchess & Trey Hedden & Raphaëlle Lambert-Pandraud & Mara Mather & Denise Park & Ellen Peters & Ian Skurnik, 2005. "Cognition, Persuasion and Decision Making in Older Consumers," Marketing Letters, Springer, vol. 16(3), pages 429-441, December.
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    6. Gilles Laurent & Carolyn Yoon & Helene H. Fung & Richard Gonzalez & Angela H. Gutchess & Trey Hedden & Raphaelle Lambert-Pandraud & Mara Mather & Denise C. Park & Ellen Peters & Ian Skurnik, 2005. "Cognition, Persuasion and Decision Making in Older Consumers," Post-Print hal-00818685, HAL.
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    Cited by:

    1. Richard Huaman-Ramirez & Dwight Merunka, 2019. "Brand experience effects on brand attachment: The role of brand trust, age, and income," Post-Print hal-02118504, HAL.
    2. 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).
    3. Hinterhuber, Andreas, 2016. "The six pricing myths that kill profits," Business Horizons, Elsevier, vol. 59(1), pages 71-83.
    4. Jessica Aschemann-Witzel & Stephan Zielke, 2017. "Can't Buy Me Green? A Review of Consumer Perceptions of and Behavior Toward the Price of Organic Food," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(1), pages 211-251, March.
    5. Loy, Jens-Peter & Ceynowa, Christian & Kuhn, Lena, 2020. "Price recall: Brand and store type differences," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    6. Nicole Koschate-Fischer & Katharina Wüllner, 2017. "New developments in behavioral pricing research," Journal of Business Economics, Springer, vol. 87(6), pages 809-875, August.

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