Unit price usage knowledge: Conceptualization and empirical assessment

While the question of whether or not consumers use unit price information has been explored, prior research has not examined fully the extent to which consumers understand how to use this information. In this exploratory research, open-ended statements from a sample of 623 consumers were employed to develop a typology of unit price usage knowledge (i.e., a consumer's understanding of how unit price information can be used). The typology was used to classify respondents as possessing either lower or higher usage knowledge. Exposure to unit prices (i.e., percentage of one's lifetime spent in the US) and motivation to process such information (i.e., education level and price consciousness) were significantly related to unit price usage knowledge. In addition, knowledge of how to use unit prices was positively related to consumers' awareness of unit prices at their primary shopping locale, self-reported unit price usage, and awareness of quantity surcharges. Implications for public policy and consumer research, as well as future research directions, are discussed.