Abstract
A price cue is defined as any marketing tactic used to persuade customers that prices offer good value compared to competitors' prices, past prices or future prices. In this chapter, we review the academic literature that documents the effectiveness of different types of prices cues. The leading economic explanation for why price cues are effective focuses on the role of customer price knowledge and the ability of customers to evaluate whether prices offer good value. We survey the evidence supporting this theory, including a review of the literature on customer price knowledge. Finally, we document the boundaries of when price cues are effective and identify several moderating factors.
| Original language | English (US) |
|---|---|
| Title of host publication | Handbook of Pricing Research in Marketing |
| Publisher | Edward Elgar Publishing Ltd. |
| Pages | 150-166 |
| Number of pages | 17 |
| ISBN (Electronic) | 9781848447448 |
| ISBN (Print) | 9781847202406 |
| State | Published - Mar 31 2009 |
ASJC Scopus subject areas
- Social Sciences(all)
- Economics, Econometrics and Finance(all)
- Business, Management and Accounting(all)
Fingerprint Dive into the research topics of 'Price cues and customer price knowledge'. Together they form a unique fingerprint.
Cite this
Anderson, E. T., & Simester, D. I. (2009). Price cues and customer price knowledge. In Handbook of Pricing Research in Marketing (pp. 150-166). Edward Elgar Publishing Ltd..