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Introduction This paper is a report on an experimental study of consumers' behaviour and on a new theory of choice between close substitutes which we developed from the indications of the results obtained. The theory is not in disharmony with the commonly accepted tenets of the fundamental analysis of demand but differs from the latter in so far as it involves only operational concepts.

“In the provision of terminology and apparatus to aid thought I do not think that Marshall did economists any greater service than by the explicit introduction of the idea of ‘elasticity’.”

Early research work confirms that the use of the new European currency, the euro, could create an effect of money illusion: expressed in euros, perceived prices seem lower and price elasticity diminished. But it also concludes on the complexity of the relationship between prices, currency unit and behavior as the money illusion effect can either increase or decrease demand for specific brands. Tests the assumption that the size of the money illusion could vary by country and is positively related to the level of the conversion rate. Applies the Gabor and Granger method to the price of an item of domestic equipment in two countries, one with a big conversion rate (Spain), and one with a small conversion rate (Germany). Observes a money illusion effect with an increase in intention to buy when the prices are expressed in euros in Germany but, as this effect is not observed in Spain, concludes that a positive relationship between money illusion and conversion rate cannot be accepted and proposes alternative hypotheses, such as the difficulty of the conversion.

Recent studies indicate that in recent years customers' price awareness (involving both recall and sensitivity) has diminished, but it is still affected by direct means such as advertising, promotion and display, and also, at a deeper level, by socio‐economic factors. The weak product identification process in which a product's market trends, market performance and financial performance are considered by the manufacturing company are also outlined. The study of price awareness can offer important insights into the consumer buying process, and there is scope for a re‐examination of the effect of pricing in the current retail marketing scene.

Presents here a theoretical model study based on the results of an empirical study, which relates brand shares to price differences in a fully quantitative fashion. Posits in its present form that it is applicable to the analysis of markets largely dominated by two brands. States that the model is simple to use and provides an eminently practical technique for market research and pricing decisions. Uses figures to emphasise the distribution function.

The concepts of the traditional theory of demand have not been found suitable for realistic studies of consumers' behaviour. Since 1954, however, new lines of exploration have evolved, of which that of Professor Jean Stoetzel has proved most fruitful. The idea that, since price serves as a powerful indicator of quality, the consumer bent on a purchase will approach the market with two price limits in mind was verified and further developed by the Nottingham University Consumer Study Group. The theory has been successfully extended to the competition between leading brands and applied to the exploration of consumer behaviour during the decimalisation period in the UK. Advances have been made also in the quantitative study of other related problems, such as the price image of retail establishments and the relationship between pack size, price and purchasing behaviour.

The accuracy of consumer price knowledge is dependent on numerous factors. This study examined the effect of some variables related to consumers' attitudes towards prices and some demographic variables on price knowledge. Results showed that consumers were more knowledgeable about the relationships between the prices of competitor brands than about the actual prices in themselves. When certain error margins were allowed, the differences between absolute and relative price knowledge were not as evident. In addition, the accuracy of consumer knowledge of prices was found to be dependent on how much importance they placed on price, and it influenced subjects' perceptions of themselves as shoppers. In this study, women and people with low income level were more knowledgeable about prices. The statistical effects and relationships between these variables were analyzed taking into account the economic, social, and cultural setting in which the research was conducted.

Introduction This is a report on a comparison of the effects of price differences on purchasing decisions obtained by observing the actual shopping behaviour of a group of housewives and the responses of a comparable group of subjects to hypothetical price situations similar to those found in the shops. The project which made this possible is outlined later.

It is stated in a recent commercial publication that of a set of products test marketed in the course of recent years, 20 per cent of the failures was mainly due to the price and the product not being well matched. While the statistical evidence presented appears to be rather too slender to permit generalisations, its indications are in conformity with other experience, both in this country and elsewhere.

Introduction Price is only one of the many elements in the marketing mix which determine the extent of the success or failure of a product, and since in any actual marketing situation price exerts its influence in combination with all the other factors, it would seem justified to ask whether it is at all reasonable to lift price out of the complex and discuss it by itself.