Price Knowledge Paradox

Price Knowledge Paradox

Reviewed by Faisal Zaidi

The finding that shoppers feel less sure of their memory for unfamiliar prices yet recall them more accurately than familiar ones.

What it is

Gaston-Breton and Raghubir reported it in a field experiment with 683 shoppers in France in 2014; the authors argue unfamiliar formats get more deliberate processing. It is drawn from work by Charlotte Gaston-Breton and Priya Raghubir (2014).

In effect

In the article on spending abroad, it serves as the arrival stage: the first prices in a new currency are read closely.

What it does not say

The finding was reported from one field experiment with shoppers in one country, and the explanation is the authors' argument. It does not say that foreign prices are always remembered better.

Sources

  1. Gaston-Breton, C., & Raghubir, P. (2014). The price knowledge paradox: Why consumers have lower confidence in, but better recall of unfamiliar prices. Customer Needs and Solutions, 1(3), 214-224.