There are methods to measure price knowledge such as recall price and recognition price. so how many items can measure price knowledge?
It depends on the pricing strategy in the business. reference price is a measure of price knowledge especially internal reference. Price sensitivity is another measurement as can be represented by customer responsiveness.
In my opinion, the price knowledge depends on buying preference based on:
1) Brand Image
2) Quality
3) Quantity
4) Durability
5) Country of Origin
6) Taste
7) Convenience
8) Sold at (for example location .... and based on location people willing to pay less or sometime more....)
9) Word of mouth
These are some of the important factors which contributes to buyer's Price Knowledge ........
I hope this answer is relevant to you ......
Hi, Majed:
Here is an interesting study that you may find it useful...This study by Hardesty, Bearden, & Carlson (2007) investigated consumer knowledge of the pricing tactics that marketers frequently employ and the effects of that knowledge on responses to various price offers. In the research, a series of studies were conducted to develop and validate a knowledge measure designed to assess pricing tactic persuasion knowledge (PTPK).
Consistent with the persuasion knowledge model, individuals with higher levels of PTPK were shown to have more knowledge-related thoughts regarding pricing tactic information than those with low levels of PTPK.
Additionally, pricing tactic persuasion knowledge was shown to be more predictive of consumer choices regarding quantity surcharge offers and purchase interest evaluations following exposure to tensile claim offers (e.g., “Save up to 50 percent Off”) than several competing constructs!
- Hardesty, D. M., Bearden, W. O., & Carlson, J. P. (2007). Persuasion knowledge and consumer reactions to pricing tactics. Journal Of Retailing, 83(2), 199-210.
Kind Regards, Nadeem