International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

 

DIMENSIONS OF CONSUMER PRICE KNOWLEDGE: DIFFERENCES BETWEEN GOODS AND SERVICES

Angelica Bahl, Gregory S. Black, Scott Sherwood

Abstract
Though the US economy is now considered to be mostly service based, marketing strategies for services, in particular pricing strategies, have not been as well developed nor as successful as those same strategies for goods. This phenomenon has led to weaker or less-developed consumer price knowledge for services, compared to goods. This study uses 187 respondents to conduct an empirical study to compare four dimensions of consumer price knowledge – accuracy, confidence, usability, specificity – between goods and services. Findings indicate consumers have less developed price knowledge, for all four types of knowledge, for services than they do for goods. In addition, product experience impacts price knowledge for services, but not for goods. Further, consumer demographics have no impact on price knowledge, suggesting the pervasive nature of the price knowledge differences between services and goods.

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