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Unit Pricing Increases Price Sensitivity Even When Products are of Identical Size

Citation

Yao, J and Oppewal, H, Unit Pricing Increases Price Sensitivity Even When Products are of Identical Size, Journal of Retailing, 92, (1) pp. 109-121. ISSN 0022-4359 (2016) [Refereed Article]

DOI: doi:10.1016/j.jretai.2015.09.002

Abstract

That displaying unit prices leads consumers to choose lower unit priced product options is well established. However, whether this effect occurs persistently across purchase conditions is unclear, and if so, why? This paper proposes that the presence of unit prices increases the salience of price in decision making, making consumers more price-sensitive, which in turn activates a greater motivation to select cheaper products. Findings from three experiments show that this motivational effect persists even when unit prices offer little cognitive benefit, such as when product options have identical sizes. Results also show that the motivational effect of unit pricing operates independently of the cognitive effect, and that an individual's price consciousness moderates the motivational effect. The paper demonstrates that unit pricing increases consumer price sensitivity in the context of price discounts, extending the generalizability of the unit pricing effect.

Item Details

Item Type:Refereed Article
Keywords:Shopping behavior; Unit pricing; Purchase motivation; Public policy
Research Division:Commerce, Management, Tourism and Services
Research Group:Marketing
Research Field:Pricing (incl. Consumer Value Estimation)
Objective Division:Commercial Services and Tourism
Objective Group:Property, Business Support Services and Trade
Objective Field:Wholesale and Retail Trade
Author:Yao, J (Dr Jun Yao)
ID Code:110733
Year Published:2016
Web of Science® Times Cited:2
Deposited By:Tasmanian School of Business and Economics
Deposited On:2016-08-10
Last Modified:2016-08-10
Downloads:0

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