Modelling consumer price cognition: Evidence from discount and superstore sectors

The role and relevance of research into price cognition is examined, both in terms of its theoretical and strategic contribution. Linkages with reference prices, adaptation level theory and assimilation-contrast theory are explored. Results are then presented from a survey of shoppers in the contrasting settings of superstores and discounters, comparing these with the findings of earlier supermarket studies. Findings are considered in terms of how buyers encode price information in memory through cognitive elaboration. A model is developed which summarises the relevant determinants and processes, offering a framework for future research.