Determinants of in-store price knowledge for packaged products: An empirical study in a Chilean hypermarket
Understanding variations in shopper price knowledge is important to academics identifying their sources, and to retail managers whose pricing strategies may depend on the extent of shopper price knowledge (or lack of) within the items they manage, since price knowledge is an important driver of item choice. This paper examines the influence of product and shopper factors on shoppers' in-store price knowledge for packaged food products in a sample of 585 shoppers in a Chilean hypermarket. Shopper self-report of price-comparison activity, non-purchase of bundle products (packs), in-store and out-store price signs, and item's price show positive correlations with consumers' in-store price knowledge. The paper finds variations of in-store price knowledge antecedents by segment. In particular, the effect of price signs is significant in the female sample, while the effect of shopping frequency is significant in the male sample. Further research may focus on understanding these differences. The paper discusses the study implications for retailers and manufacturers.