IDEAS home Printed from
   My bibliography  Save this paper

Measuring the Price Knowledge Shoppers Bring to the Store


  • Marc Vanhuele

    () (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • X. Drèze


Reference price research suggests that consumers memorize and recall price information when selecting brands for frequently purchased products. Previous price-knowledge surveys, however, indicate that memory for prices is lower than expected. In this study, the authors show that these price-knowledge surveys provide imperfect estimates of price knowledge, because they focus only on recall and short-term memory. The authors propose, instead, to use a combination of price recall, price recognition, and deal recognition to measure the degree to which consumers use auditory verbal, visual Arabic, or analogue magnitude representations to memorize prices. The authors show how the combination of these three measures provides a much richer understanding of consumers' knowledge of prices. The results suggest that the price knowledge involved in reference prices may often not be accessible to recall but shows up in price recognition and deal recognition. In addition, the authors identify consumer and product characteristics that explain the variations in price knowledge. They find, for example, that frequent promotions increase consumers' ability to remember regular prices and that store switchers do not possess better price knowledge than other shoppers.

Suggested Citation

  • Marc Vanhuele & X. Drèze, 2002. "Measuring the Price Knowledge Shoppers Bring to the Store," Post-Print hal-00457563, HAL.
  • Handle: RePEc:hal:journl:hal-00457563
    DOI: 10.1509/jmkg.
    Note: View the original document on HAL open archive server:

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    1. Jacobides, Michael G. & Knudsen, Thorbjorn & Augier, Mie, 2006. "Benefiting from innovation: Value creation, value appropriation and the role of industry architectures," Research Policy, Elsevier, vol. 35(8), pages 1200-1221, October.
    2. Paul Dowdall & Derek Braddon & Keith Hartley, 2004. "The UK defence electronics industry: adjusting to change," Defence and Peace Economics, Taylor & Francis Journals, vol. 15(6), pages 565-586.
    3. repec:fth:harver:1473 is not listed on IDEAS
    4. Ruttan, Vernon W., 2006. "Is War Necessary for Economic Growth?: Military Procurement and Technology Development," OUP Catalogue, Oxford University Press, number 9780195188042.
    5. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 287-343 National Bureau of Economic Research, Inc.
    6. Molas-Gallart, Jordi & Tang, Puay, 2006. "Ownership matters: Intellectual Property, privatization and innovation," Research Policy, Elsevier, vol. 35(2), pages 200-212, March.
    7. Mustar, Philippe & Laredo, Philippe, 2002. "Innovation and research policy in France (1980-2000) or the disappearance of the Colbertist state," Research Policy, Elsevier, vol. 31(1), pages 55-72, January.
    8. Virginia Acha & Lucia Cusmano, 2005. "Governance and co-ordination of distributed innovation processes: patterns of R&D co-operation in the upstream petroleum industry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(1-2), pages 1-21.
    9. Davies, Andrew & Brady, Tim, 2000. "Organisational capabilities and learning in complex product systems: towards repeatable solutions," Research Policy, Elsevier, vol. 29(7-8), pages 931-953, August.
    10. Hobday, Mike, 2000. "The project-based organisation: an ideal form for managing complex products and systems?," Research Policy, Elsevier, vol. 29(7-8), pages 871-893, August.
    11. Lazaric, Nathalie & Mangolte, Pierre-Andre & Massue, Marie-Laure, 2003. "Articulation and codification of collective know-how in the steel industry: evidence from blast furnace control in France," Research Policy, Elsevier, vol. 32(10), pages 1829-1847, December.
    12. Paul Dowdall, 2004. "Chains, networks and shifting paradigms: the UK defence industry supply system," Defence and Peace Economics, Taylor & Francis Journals, vol. 15(6), pages 535-550.
    13. repec:dau:papers:123456789/1342 is not listed on IDEAS
    14. Dunne, J. Paul, 1995. "The defense industrial base," Handbook of Defense Economics,in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 14, pages 399-430 Elsevier.
    15. Breschi, Stefano & Lissoni, Francesco & Malerba, Franco, 2003. "Knowledge-relatedness in firm technological diversification," Research Policy, Elsevier, vol. 32(1), pages 69-87, January.
    16. Jerker Denrell & Niklas Arvidsson & Udo Zander, 2004. "Managing Knowledge in the Dark: An Empirical Study of the Reliability of Capability Evaluations," Management Science, INFORMS, vol. 50(11), pages 1491-1503, November.
    17. Lionel Nesta & Pier-Paolo Saviotti, 2006. "Firm knowledge and market value in biotechnology," Industrial and Corporate Change, Oxford University Press, vol. 15(4), pages 625-652, August.
    18. Elisabeth Kremp & Jacques Mairesse, 2004. "Knowledge Management, Innovation, and Productivity: A Firm Level Exploration Based on French Manufacturing CIS3 Data," NBER Working Papers 10237, National Bureau of Economic Research, Inc.
    19. Hobday, Mike & Rush, Howard & Tidd, Joe, 2000. "Innovation in complex products and system," Research Policy, Elsevier, vol. 29(7-8), pages 793-804, August.
    20. Claude Serfati, 2001. "The Adaptability Of The French Armaments Industry In An Era Of Globalization," Industry and Innovation, Taylor & Francis Journals, vol. 8(2), pages 221-239.
    21. Ann Majchrzak & Lynne P. Cooper & Olivia E. Neece, 2004. "Knowledge Reuse for Innovation," Management Science, INFORMS, vol. 50(2), pages 174-188, February.
    22. Coombs, Rod & Hull, Richard, 1998. "'Knowledge management practices' and path-dependency in innovation," Research Policy, Elsevier, vol. 27(3), pages 237-253, July.
    23. V. Acha & S. Brusoni, 2008. "The Changing Governance Of Knowledge In Avionics," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(1-2), pages 43-57.
    24. Stowsky, Jay, 2004. "Secrets to shield or share? new dilemmas for military R&D policy in the digital age," Research Policy, Elsevier, vol. 33(2), pages 257-269, March.
    25. Michael Hobday & Andrew Davies & Andrea Prencipe, 2005. "Systems integration: a core capability of the modern corporation," Industrial and Corporate Change, Oxford University Press, vol. 14(6), pages 1109-1143, December.
    Full references (including those not matched with items on IDEAS)


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

    Cited by:

    1. repec:spr:amsrev:v:3:y:2013:i:3:d:10.1007_s13162-013-0044-y is not listed on IDEAS
    2. Avichai Snir & Daniel Levy, 2011. "Shrinking Goods and Sticky Prices: Theory and Evidence," Working Papers 2011-03, Bar-Ilan University, Department of Economics.
    3. Vincze, János & Koltay, Gábor, 2009. "Fogyasztói döntések a viselkedési közgazdaságtan szemszögéből
      [Consumer decisions from the angle of behavioural economics]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 495-525.
    4. Vroegrijk, M.J.J., 2012. ""Smart shopping" : Implications of hard-discounters and multiple-store patronage," Other publications TiSEM dacce31f-6f7e-4190-b13d-a, Tilburg University, School of Economics and Management.
    5. Falk, Tomas & Kunz, Werner H. & Schepers, Jeroen J.L. & Mrozek, Alexander J., 2016. "How mobile payment influences the overall store price image," Journal of Business Research, Elsevier, vol. 69(7), pages 2417-2423.
    6. Levy, Daniel & Snir, Avichai, 2013. "Shrinking Goods," MPRA Paper 46040, University Library of Munich, Germany.
    7. Gunnarsson, Jonas, 2015. "Retailer Price Image - An Introduction and Literature Review," SSE Working Paper Series in Business Administration 2015:2, Stockholm School of Economics.
    8. Olavarrieta, Sergio & Hidalgo, Pedro & Manzur, Enrique & Farías, Pablo, 2012. "Determinants of in-store price knowledge for packaged products: An empirical study in a Chilean hypermarket," Journal of Business Research, Elsevier, vol. 65(12), pages 1759-1766.
    9. Cristian - Marian Barbu, 2015. "Orientation to Value in Substantiation of Price Strategy - A New Approach of the Modern Enterprise," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 1(2), pages 44-55, June.
    10. van Oest, R.D. & Paap, R., 2004. "Analyzing the effects of past prices on reference price formation," Econometric Institute Research Papers EI 2004-36, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    11. Charlotte Gaston-Breton & Priya Raghubir, 2013. "Opposing effects of sociodemographic variables on price knowledge," Marketing Letters, Springer, vol. 24(1), pages 29-42, March.
    12. Danny Weathers & Scott Swain & Jay Carlson, 2012. "Why consumers respond differently to absolute versus percentage descriptions of quantities," Marketing Letters, Springer, vol. 23(4), pages 943-957, December.
    13. repec:rss:jnljms:v4i10p8 is not listed on IDEAS
    14. repec:kap:jcopol:v:40:y:2017:i:2:d:10.1007_s10603-017-9345-0 is not listed on IDEAS
    15. repec:spr:amsrev:v:3:y:2013:i:3:d:10.1007_s13162-013-0041-1 is not listed on IDEAS
    16. Julio J. Rotemberg, 2008. "Behavioral Aspects of Price Setting, and Their Policy Implications," NBER Working Papers 13754, National Bureau of Economic Research, Inc.
    17. repec:bla:jconsa:v:51:y:2017:i:1:p:211-251 is not listed on IDEAS
    18. repec:spr:jbecon:v:87:y:2017:i:6:d:10.1007_s11573-016-0839-z is not listed on IDEAS
    19. Rosa Diaz, Isabel Maria & Rondán Cataluña, Francisco Javier, 2011. "Antecedentes da importância do preço nas decisões de compra," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 51(4), July.
    20. DAMAY, Coralie, 2007. "Mémorisation des prix par les enfants : Que nous apprennent leurs erreurs de rappel ?," Les Cahiers de Recherche 871, HEC Paris.
    21. Ranyard, Rob & Missier, Fabio Del & Bonini, Nicolao & Duxbury, Darren & Summers, Barbara, 2008. "Perceptions and expectations of price changes and inflation: A review and conceptual framework," Journal of Economic Psychology, Elsevier, vol. 29(4), pages 378-400, August.
    22. Pechtl, Hans, 2004. "Das Preiswissen von Konsumenten: eine theoretisch-konzeptionelle Analyse," Wirtschaftswissenschaftliche Diskussionspapiere 01/2004, University of Greifswald, Faculty of Law and Economics.
    23. VANHUELE, Marc & LAURENT, Gilles & DREZE, Xavier, 2005. "Consumers' immediate memory for prices," Les Cahiers de Recherche 813, HEC Paris.


    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:hal:journl:hal-00457563. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.