Price knowledge structures relating to grocery products

Abstract

Purpose

The purpose of this paper is to conceptualize several dimensions of product‐price knowledge and to develop measurement variables that qualify a person's product‐price knowledge. Assuming product‐price knowledge is a multidimensional construct, the relationship between its dimensions is to be investigated and consumer characteristics are to be analyzed according to whether they influence these dimensions.

Design/methodology/approach

Drawing on existing research, the paper theoretically develops a framework that proposes a taxonomy of product‐price knowledge and leads to a road map to identify determinants that probably affect a person's product‐price knowledge. Applying data on 319 shoppers, a path model simultaneously estimates the internal structure of the specified dimensions of product‐price knowledge, and determines the influence of the selected consumer characteristics on product‐price knowledge.

Findings

The proposed taxonomy sees product‐price knowledge as encompassing not just isomorphic prices, i.e. actually or formerly perceived and recalled prices. Rather, inferential prices, such as the normal price, or the upper reservation price for a product, as well as knowledge about price‐setting conditions and confidence in memorized prices, comprise important elements of a person's product‐price knowledge. As a result, there are several measurement variables to qualify a person's product‐price knowledge. The empirical results identify price mavenism, price consciousness, the use of a shopping list, and shopping frequency, as determinants of the accuracy and size of, and confidence in, one's product‐price knowledge, even though the impact structure is not uniform. There are some indications that formerly encountered price stimuli represent a relatively obsolete part of a consumer's product‐price knowledge.

Research limitations/implications

Research on product‐price knowledge should not be restricted to measuring the accuracy of recalled paid prices. Size of product‐price knowledge, and confidence in one's price knowledge, are identified as measures that are at least equally important to qualify a person's product‐price knowledge as accuracy. Furthermore, size and confidence are also additional dependent variables in analyzing determinants of consumers' product‐price knowledge. This is important for researchers and practitioners.

Originality/value

The proposed taxonomy and the empirical results lead to finer grained understanding of product‐price knowledge as a multi‐dimensional construct and its determinants.

Citation

Pechtl, H. (2008), "Price knowledge structures relating to grocery products", Journal of Product & Brand Management, Vol. 17 No. 7, pp. 485-496. https://doi.org/10.1108/10610420810916380