Behavioral Pricing by Hooman Estelani, Sarah Maxwell (Editors)

By Hooman Estelani, Sarah Maxwell (Editors)

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2000), Do Consumers Really Know if the Price is Right? Direct Measures of Reference Price and their Implications for Retailing, Les cahiers de recherche, Groupe HEC, Paris. Vanhuele, M. and Dre`ze, X. (2002), “Measuring the price knowledge shoppers bring to the store”, Journal of Marketing, Vol. 66, pp. 72-85. L. J. (1993), “Who are the price vigilantes? An investigation of differentiating characteristics influencing price information processing”, Journal of Retailing, Vol. 69 No. 2, pp. 216-33.

However, there are some limitations to our study. Since the research design follows a majority of earlier studies, some generalization is possible, but it is not possible to include all earlier studies in a meta-analytic procedure. Moreover, we use PEE as a measure of price knowledge and aggregate it at product group level as well. Our data were collected between March and June 2002, less than half a year after the introduction of the Euro. Owing to this change in currency, consumers may not yet be familiar with prices.

For instance, some brands can function as “traffic builders”, increasing profits for the retailer, whereas other brands function as “cash cows” for producers, with lower margins for the retailer. We would call such a cooperative brand and price management “Strategic Brand Coordination” (SBC), an extension of the well-known ECR-concept, and would expect mutual benefits for producer and retailer alike. investigated. That would further enrich our knowledge of price awareness. Another limitation concerns the product category in which we analyzed price knowledge.

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