When children confront prices: an approach based on price - PDF document

When children confront prices: an approach based on price presentation Coralie Damay Department of Marketing, ISC Paris, Paris, France Nathalie Guichard ´ Paris 1 Panthe ´on-Sorbonne, Paris, France, and Department of Marketing, Universite ´lie Clauzel Ame Department of Marketing, Universite ´ Paris Est – Universite ´ Evry Val d’Essonne, Evry, France Abstract Purpose – This paper seeks to examine how young consumers attribute and select product prices according to their presentation (i.e. format and ending). Design/methodology/approach – A questionnaire, administered to a sample of children between six and 12 years of age, reveals that children’s allocation of prices and children’s choices depend on different price formats (i.e. non-decimal versus decimal prices and varied price endings). Findings – Children tend to prefer round prices and to choose a 0-ending in the decimal portion of decimal prices. However, their preferences also depend on their position as either a salesperson or a buyer. Originality/value – Research into the relationship between children and price is a relatively new field. This study uses recent works as a basis and extends the field with new insights. Keywords Children (age groups), Decimal prices, No-decimal prices, Price endings, Buyers, Salesperson, Young consumers, Price positioning Paper type Research paper Although price was once the unloved variable in the decisions (Bo ¨cker, 1986; Filiatrault and Ritchie, 1980; marketing mix (Maxwell and Estelami, 2006), its status has Foxman and Tansuhaj, 1988; Jenkins, 1979; John, 1999; recently changed. In modern contexts marked by increased McNeal, 1969, 1992). Even young children have real competition, price has become decisive for both business and purchasing power ( Le Marketing Book Juniors , 2006) and consumer behaviour. A revival of interest in this variable is vast choice possibilities. Thus, it is relevant to investigate their purchasing process, as both decision makers and real widespread, across both business and academic fields, and research has examined the role of prices in purchase decisions consumers who are faced with different marketing strategies, including price-based efforts. This exploratory research (e.g. Biswas and Blair, 1991; Urbany et al. , 1988), customer therefore examines child consumers’ responses to and knowledge (Dickson and Sawyer, 1990; Gabor and Granger, preferences for price-oriented marketing practices, which 1964), and even changes in consumers’ purchasing behaviour vary according to the format (non-decimal versus decimal) (Ginzberg, 1936; Gue ´guen and Legoherel, 2004). and ending of the price. Researchers also have regarded social status, age, and Our theoretical framework revolves around three aspects. gender as determinants of price comparisons (Abramovitch First, we investigate the role of price and price knowledge in et al. , 1991; Donohue, 1975; Gabor and Granger, 1961). the act of purchase. Second, we focus on the child as an Yet research related to child consumers and the “price economic actor. Third, and finally, we discuss the influence of factor” remains scarce. Knowledge of prices is not innate but the presentation of a price on perception and demand. rather develops through a process that begins early in a consumer’s life. Therefore, it is legitimate to investigate children’s learning of prices, which serves as a basis for their 1. Theoretical and empirical foundations adult abilities. Since the 1970s, children have been a main Before analysing the influence of price presentation on child target for marketing and related research. Early studies consumers, we establish their role in the purchasing process in focused on their socialisation processes (Ward, 1974) and general. Therefore, we examine the impact of price format their influences, as well as their decision power (John, 1999; and endings in children’s purchasing decisions. McNeal, 1992). In turn, researchers have found that children have an unquestionable effect on the family’s economic 1.1 Role of prices in the purchasing process and consumers’ price knowledge The current issue and full text archive of this journal is available at During a purchase decision, a consumer assesses alternatives www.emeraldinsight.com/1061-0421.htm according to various factors, including price (Gabor and Granger, 1964; Monroe and Lee, 1999). The price helps consumers make comparisons between proposed products Journal of Product & Brand Management (e.g. “That product is more expensive than this one”) and 20/7 (2011) 514–525 subjective inferences, often about the product’s quality q Emerald Group Publishing Limited [ISSN 1061-0421] (Erickson and Johansson, 1985). As they learn about price, [DOI 10.1108/10610421111181822] 514