Same but different - The effect of the unit of measure on the valuation of a unit price

Ohlwein, Martin

doi:10.1016/j.jretconser.2021.102896

Cited by 2 publications

(2 citation statements)

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“…They found that the unit of measurement effect is only significant in the medium price situation. Ohlwein (2022a), Ohlwein (2022b) and Kwortnik et al (2006) also treat price level as an important product attribute when they investigate the effect of measurement of unit in their choice experiments. However, the price level in previous studies has either been treated as a control variable or been defined ambiguously.…”

Section: The Moderating Effect Of Price Level On Purchase Intentionmentioning

confidence: 99%

“…In line with the research of Fassnacht and Unterhuber (2016), consumers' response to price labeling strategy in online/offline channels is different. Moreover, even though some previous research has considered commodity price levels as an important factor (Kwortnik et al, 2006;Yao and Oppewal, 2016b;Ohlwein, 2022aOhlwein, , 2022b, the way they define low-, middle-and high-price levels is ambiguous. Thus, it is hard for retail managers to figure out to which level their products' price levels belong.…”

Section: Theoretical Contributionsmentioning

confidence: 99%

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How price labeling strategy affects consumers' purchase intention? The role of perceived price difference in price assessment

Liang,

Zhou,

Rizwan

et al. 2023

APJML

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PurposeBy conducting an online experiment, this paper proposes and tests a conceptual model about the impact of price labeling strategy on consumers' perceived price difference and purchase intention. The authors also analyze differential influences of shopping channels and price levels on documented effects. The paper provides strategic suggestions for online grocery store managers to adopt profit-maximizing labeling decisions.Design/methodology/approachIn a between-subject experiment, the authors simulated a shopping task with eight scenarios by exogenously manipulating price labeling strategies (unit price/retail price), sales channels (online/offline) and price levels (higher/lower than the average price). Participants are randomly assigned to one of the eight scenarios and asked to report their perceived price difference between the stimuli product and the average market price and their purchase intention on the stimuli product.FindingsExperimental results show that compared to the unit price, the retail price increases the perceived price difference. It shows that the unit price increases consumers' purchase intention when the product price is higher than the average market price. However, these effects only exist in the online shopping context.Originality/valueThis paper extends the study of price labeling strategy to an online shopping context and examines the mediation effect of the perceived price difference.

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Section: The Moderating Effect Of Price Level On Purchase Intentionmentioning

confidence: 99%

Section: Theoretical Contributionsmentioning

confidence: 99%

How price labeling strategy affects consumers' purchase intention? The role of perceived price difference in price assessment

Liang,

Zhou,

Rizwan

et al. 2023

APJML

View full text Add to dashboard Cite

show abstract

Preferences as a Determinant of the Measurement-Unit Effect for Unit Prices

Ohlwein

2022

International Journal of Market Research

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The extent to which alternative measurement units affect consumer behaviour is the subject of a handful of studies, which, however, measure this effect at an aggregate level. This presents a gap in that it is of great importance for marketing practice to understand whether the observed effect applies to all consumers to a similar extent. Investigating the product category bottled beer and applying an importance-focused post hoc segmentation, it is discovered that no measurement-unit effect occurs for brand-oriented customers. The unit of measurement in which a unit price is indicated substantially influences the preference structure for only one in five respondents. Both strategic and operational decisions with regard to unit prices should therefore not be based on an averaged market view, but on a segment-specific perspective.

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Same but different - The effect of the unit of measure on the valuation of a unit price

Cited by 2 publications

References 104 publications

How price labeling strategy affects consumers' purchase intention? The role of perceived price difference in price assessment

How price labeling strategy affects consumers' purchase intention? The role of perceived price difference in price assessment

Preferences as a Determinant of the Measurement-Unit Effect for Unit Prices

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