Antecedents of consumer price consciousness in a turbulent economy

Abstract

AbstractMajor economic crises create financial and normative stressors, affecting consumers long after economies technically leave recession. Consumer adaptations to these stressors challenge researchers’ and marketers’ assumptions of well‐established concepts and theories, notably consumer price consciousness (CPC). We examine this pivotal marketing construct within the domains of stress and coping during times of economic turbulence. In this paper, the authors develop and test a conceptual model, then present implications for consumer researchers, brand marketers, and retailers. The model focuses on the relationships between changing CPC and major economic and normative stressors, respectively financial well‐being and frugality norms. To inform opportunities for specific interventions, we identify mediating roles of consumer anticipated guilt, financial fear, and smart shopper self‐perception. SEM and mediation analysis test this model, based on a national survey of 1202 UK consumers. The results identify stressors that influence changing CPC, following fundamental shifts in consumer psychology and behaviour since recession. Each antecedent of CPC presents opportunities for marketers and retailers to defend or adapt brands to the challenges and opportunities presented by more price conscious consumers.