Product category determinants of price knowledge for durable consumer goods

Existing research in pricing has not extensively examined the impact of the product category on consumers’ knowledge of prices, especially for durable goods. In two empirical studies, this paper examines the influence of the product category on consumers’ knowledge of prices for durables. The first study utilizes data from the popular television game show The Price is Right to establish significant cross-category variations in price knowledge, while the second study links these variations to the specific characteristics of each product category. The results extend existing research findings by isolating the impact of product category determinants, such as purchase frequency, advertising exposure, and use of the price-quality cue, on consumers’ knowledge of prices.