Unit pricing matters more when consumers are under time pressure

Abstract

Purpose

This paper aims to first investigate how unit pricing affects consumers’ grocery purchase decisions and perceptions of the shopping task’s information load. The second goal is to test how time pressure enhances the behavioural and perceptual effects of displaying unit prices.

Design/methodology/approach

Two on-line experiments were conducted using national samples of shoppers. In Study 1, participants indicated their choices and perceptions in an inter-brand shopping scenario where prepackaged products have conflicting positions on retail price and unit price. In Study 2, participants conducted the same shopping task but now under a condition of time pressure.

Findings

Study 1 shows that unit pricing shifts consumer choices towards the lower unit priced options and improves their perceptions of task information load. Study 2 shows that when consumers are under time pressure, unit pricing shows stronger effects on choices but not on perceptions.

Research limitations/implications

The study comprised a fairly homogenous set of low involvement categories and relatively small assortments in a hypothetical purchase setting. Exploration of the role of unit pricing in more complex and more realistic purchase environments pose suitable avenues for future research.

Practical implications

This study shows that consumers benefit from unit pricing because it makes it easier for them to find the lower unit priced items and to more quickly complete their shopping task. Retailers will benefit from increased customer satisfaction and possibly an improved store image.

Social implications

The study shows that consumers generally benefit from the presence of unit pricing and that unit price information does not create harmful effects in terms of increasing their information load.

Originality/value

This study uses a specifically designed and controlled but nevertheless realistic grocery choice task to study the effects of unit pricing in an inter-brand context where there are only small differences in size and price. The study contributes to the literature by showing that in such conditions, unit prices help consumers compare the economic losses associated with product options. Their heuristic role is more pronounced when consumers are under time pressure. The study shows that consumers generally benefit from the presence of unit prices.

Citation

Yao, J. and Oppewal, H. (2016), "Unit pricing matters more when consumers are under time pressure", European Journal of Marketing, Vol. 50 No. 5/6, pp. 1094-1114. https://doi.org/10.1108/EJM-03-2015-0122