Who are the price vigilantes? An investigation of differentiating characteristics influencing price information processing

Research suggests that many consumers exhibit poor price recall, even at the point-of-purchase and that some consumers are more price vigilant than others. We incorporate Stigler's economics of information concept into a multinomial logit model to explore differentiating factors that influence the price recall information at the point-of-purchase. Intercepting subjects at the point-of-purchase in an actual retail setting, data were collected from 289 subjects across four product categories and three stores. We find that price recall is influenced by correctly perceived promotion status of the brand, use of the price in making the purchase decision, and income. Two other demographic variables, gender and age, had no impact on price recall. We discuss implications for researchers, retail managers, and consumer advocacy groups.