Differences in consumer price knowledge between Germany and Finland

Abstract

Price knowledge studies are a key to understanding behavioural pricing strategies. Consumer price knowledge is an ongoing concern in the literature. It is also generally acknowledged that price awareness is subject to cross-cultural differences. This is important because the retailer market is dominated by global players who use standardized marketing-mix instruments. However, there are no studies about price knowledge between countries. This study examines differences in price knowledge between German and Finnish consumers. The results show that Finnish consumers were able to give at least some price estimate for a product more often, but the estimates of German consumers were more accurate. Due to data limitations of our study more research is needed about cross-cultural price knowledge.