IDEAS home Printed from https://ideas.repec.org/a/kap/mktlet/v24y2013i1p29-42.html
   My bibliography  Save this article

Opposing effects of sociodemographic variables on price knowledge

Author

Listed:
  • 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

Suggested Citation

  • 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
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11002-012-9201-6
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11002-012-9201-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Marc Vanhuele & X. Drèze, 2002. "Measuring the Price Knowledge Shoppers Bring to the Store," Post-Print hal-00457563, HAL.
    2. Stigler, George J., 2011. "Economics of Information," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 35-49.
    3. 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.
    4. 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.
    5. Urbany, Joel E, 1986. "An Experimental Examination of the Economics of Information," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 13(2), pages 257-271, September.
    6. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. Nicole Koschate-Fischer & Katharina Wüllner, 2017. "New developments in behavioral pricing research," Journal of Business Economics, Springer, vol. 87(6), pages 809-875, August.
    6. 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).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dhaval M. Dave, 2013. "Effects of Pharmaceutical Promotion: A Review and Assessment," NBER Working Papers 18830, National Bureau of Economic Research, Inc.
    2. Kesavan, T. & Jensen, H. H. & Johnson, S. R., 1987. "Advertising Information and Consumer Demand: The Case of Agricultural Commodity Promotion," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 269901, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Magnini, Vincent P. & Karande, Kiran, 2011. "Understanding consumer services buyers based upon their purchase channel," Journal of Business Research, Elsevier, vol. 64(6), pages 543-550, June.
    4. Sendhil Mullainathan & Joshua Schwartzstein & Andrei Shleifer, 2008. "Coarse Thinking and Persuasion," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 577-619.
    5. Veisten, Knut, 2007. "Contingent valuation controversies: Philosophic debates about economic theory," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(2), pages 204-232, April.
    6. Wang, Shinn-Shyr & Stiegert, Kyle W., 2006. "The Duopolistic Firm with Endogenous Risk Control: Case of Persuasive Advertising and Product Differentiation," Staff Paper Series 496, University of Wisconsin, Agricultural and Applied Economics.
    7. Lynn Gregory, 2014. "Fundraising and the Elderly: A Content Analysis," Journal of Consumer Policy, Springer, vol. 37(1), pages 5-25, March.
    8. Olivier Mesly & David W. Shanafelt & Nicolas Huck, 2021. "Dysfunctional Markets: A Spray of Prey Perspective," Journal of Economic Issues, Taylor & Francis Journals, vol. 55(3), pages 797-819, July.
    9. Kuppelwieser, Volker G. & Sarstedt, Marko & Tuzovic, Sven, 2014. "The role of context and motivation variables in mobile commerce usage — A further perspective on Chong (2013)," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 156-161.
    10. Talukdar, Debabrata & Gauri, Dinesh K. & Grewal, Dhruv, 2010. "An Empirical Analysis of the Extreme Cherry Picking Behavior of Consumers in the Frequently Purchased Goods Market," Journal of Retailing, Elsevier, vol. 86(4), pages 336-354.
    11. Justin P. Johnson & David P. Myatt, 2006. "On the Simple Economics of Advertising, Marketing, and Product Design," American Economic Review, American Economic Association, vol. 96(3), pages 756-784, June.
    12. Denis Guiot & Benny Barak & Stephen Gould & Keun Lee & Yong Zhang, 2006. "L'Age Subjectif Par Dela Les Frontieres : Une Etude Cross Culturelle Dans Le Secteur De La Mode Vestimentaire," Post-Print halshs-00169081, HAL.
    13. DeSarbo, Wayne S. & Choi, Jungwhan, 1998. "A latent structure double hurdle regression model for exploring heterogeneity in consumer search patterns," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 423-455, November.
    14. Kuppelwieser, Volker G., 2016. "Towards the use of chronological age in research – A cautionary comment," Journal of Retailing and Consumer Services, Elsevier, vol. 33(C), pages 17-22.
    15. Henrik Egbert & Teodor Sedlarski & Aleksandar B. Todorov, 2022. "Foundations of contemporary economics: George Stigler and the Chicago school of economics – on price theory and information economics," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 452-472.
    16. Jensen, Birger Boutrup & Orquin, Jacob & Bech-Larsen, Tino, 2014. "What distinguishes passive recipients from active decliners of sales flyers?," Journal of Retailing and Consumer Services, Elsevier, vol. 21(1), pages 1-8.
    17. Lawrence A. Boland & Irene M. Gordon, 1992. "Criticizing positive accounting theory," Contemporary Accounting Research, John Wiley & Sons, vol. 9(1), pages 142-170, September.
    18. Serafin Grundl & You Suk Kim, 2019. "Consumer mistakes and advertising: The case of mortgage refinancing," Quantitative Marketing and Economics (QME), Springer, vol. 17(2), pages 161-213, June.
    19. Jan Hausfeld & Sven Resnjanskij, 2017. "Risky Decisions and the Opportunity Costs of Time," TWI Research Paper Series 108, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    20. Szymanowski, Maciej & Gijsbrechts, Els, 2013. "Patterns in consumption-based learning about brand quality for consumer packaged goods," International Journal of Research in Marketing, Elsevier, vol. 30(3), pages 219-235.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:mktlet:v:24:y:2013:i:1:p:29-42. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.