Prominence of Price

People’s awareness of what products cost has been facing a decline. De Chernatony and Knox (1992) showed that consumers were much more accurate in recalling prices in 1958 than consumers in 1984, by doing a meta-analysis of many other price recall studies. My research aimed to explain this decrease in price awareness by looking at theories on pricing strategies. These strategies can roughly be divided into theories of exposure and rounding. Rounding is an easy theory to dive into. Instead of remembering prices such as €14.99, we remember spending €15, and technically, that is wrong. ….[READ]