Consumers' knowledge of price levels and dynamics

Abstract: This study investigates the level of consumers’ subjective price knowledge and the factors that influence it the most. The first objective is to verify the hypothesis that consumers generally do not know product prices. The second is to check whether their knowledge of store-level prices is equally modest. Finally, it was deemed interesting – in light of the intense adoption of deflationary pricing policies by retailers and upon which communication is increasingly focused – to assess consumer awareness of price dynamics in a given time period. The study results confirmed the hypothesis.