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Consumers' immediate memory for prices

Author

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  • VANHUELE, Marc
  • LAURENT, Gilles
  • DREZE, Xavier

Abstract

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.

Suggested Citation

  • VANHUELE, Marc & LAURENT, Gilles & DREZE, Xavier, 2005. "Consumers' immediate memory for prices," HEC Research Papers Series 813, HEC Paris.
    • Handle: RePEc:ebg:heccah:0813
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    File URL: http://www.hec.fr/var/fre/storage/original/application/e1cc2c1185052d3fbaa22153a49bc85c.pdf
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    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.
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    4. Briesch, Richard A, et al, 1997. "A Comparative Analysis of Reference Price Models," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(2), pages 202-214, September.
    5. Grewal, Dhruv & Marmorstein, Howard, 1994. "Market Price Variation, Perceived Price Variation, and Consumers' Price Search Decisions for Durable Goods," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(3), pages 453-460, December.
    6. Schindler, Robert M & Kirby, Patrick N, 1997. "Patterns of Rightmost Digits Used in Advertised Prices: Implications for Nine-Ending Effects," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(2), pages 192-201, September.
    7. Manoj Thomas & Vicki Morwitz, 2005. "Penny Wise and Pound Foolish: The Left-Digit Effect in Price Cognition," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 32(1), pages 54-64, June.
    8. Kalyanaram, Gurumurthy & Little, John D C, 1994. "An Empirical Analysis of Latitude of Price Acceptance in Consumer Package Goods," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(3), pages 408-418, December.
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    More about this item

    Keywords

    consumer behavior; numerical cognition; price memory;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General

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