Unit Price Measures in Retailing: Consistency Effects on Product Choice and Store Evaluations

摘要

Unit prices help consumers identify the cheapest product. Yet, guidelines for their implementation vary considerably. Depending on regional regulations, retailers have substantial leeway in choosing a measure in which the unit price is expressed (e.g., per kilogramme vs. per wash load). Sometimes retailers even apply different measures for one product category at a time, which might be confusing for consumers. This study investigates the impact of consistent unit price measures on processing fluency of price information and product choice. The results of three studies reveal that the effectiveness of unit prices heavily depends on the consistency level. The findings suggest that consistency enhances processing fluency and makes it easier for consumers to compare prices. In addition, it unfolds positive effects for the retailer, as it leads to higher satisfaction and repatronage intentions.