TY - JOUR
T1 - Memory-Based Store Price Judgments
T2 - The Role of Knowledge and Shopping Experience
AU - Ofir, Chezy
AU - Raghubir, Priya
AU - Brosh, Gili
AU - Monroe, Kent B.
AU - Heiman, Amir
N1 - Funding Information:
The authors acknowledge the support of the Davidson and Kmart Research Centers and the Julian Simon Foundation at the Hebrew University, the Haas School of Business, as well as the assistance of students at various stages of this research.
PY - 2008/12
Y1 - 2008/12
N2 - This paper investigates the processes underlying consumers' memory-based store price judgments. The numerosity heuristic implies that the greater the number of relatively lower priced products at a store that consumers can recall, the lower will be their overall price image of the store. That is, people use the number of recalled low-price products to judge the overall store price image. We show that this expectation holds only for knowledgeable consumers. Instead, less knowledgeable consumers use the ease with which low-price products are recalled (i.e., the availability heuristic) as a cue to make store price judgments. Therefore, the fewer low-price products they recall, the easier their recall task, and the lower their price perceptions of the store. Field studies using different manipulations tested and confirmed these predictions. Managerial implications for retailers are offered. Theoretical implications for behavioral price perceptions, memory-based judgments, and the use of heuristic cues are also discussed.
AB - This paper investigates the processes underlying consumers' memory-based store price judgments. The numerosity heuristic implies that the greater the number of relatively lower priced products at a store that consumers can recall, the lower will be their overall price image of the store. That is, people use the number of recalled low-price products to judge the overall store price image. We show that this expectation holds only for knowledgeable consumers. Instead, less knowledgeable consumers use the ease with which low-price products are recalled (i.e., the availability heuristic) as a cue to make store price judgments. Therefore, the fewer low-price products they recall, the easier their recall task, and the lower their price perceptions of the store. Field studies using different manipulations tested and confirmed these predictions. Managerial implications for retailers are offered. Theoretical implications for behavioral price perceptions, memory-based judgments, and the use of heuristic cues are also discussed.
KW - Consumer knowledge
KW - Ease of recall
KW - Memory
KW - Numerosity
KW - Store price judgments
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U2 - 10.1016/j.jretai.2008.08.001
DO - 10.1016/j.jretai.2008.08.001
M3 - Article
AN - SCOPUS:55949091954
SN - 0022-4359
VL - 84
SP - 414
EP - 423
JO - Journal of Retailing
JF - Journal of Retailing
IS - 4
ER -