Price knowledge: effects of consumers' attitudes towards prices, demographics, and socio‐cultural characteristics

Abstract

The accuracy of consumer price knowledge is dependent on numerous factors. This study examined the effect of some variables related to consumers' attitudes towards prices and some demographic variables on price knowledge. Results showed that consumers were more knowledgeable about the relationships between the prices of competitor brands than about the actual prices in themselves. When certain error margins were allowed, the differences between absolute and relative price knowledge were not as evident. In addition, the accuracy of consumer knowledge of prices was found to be dependent on how much importance they placed on price, and it influenced subjects' perceptions of themselves as shoppers. In this study, women and people with low income level were more knowledgeable about prices. The statistical effects and relationships between these variables were analyzed taking into account the economic, social, and cultural setting in which the research was conducted.