Unit Pricing Matters More When Consumers are Under Time Pressure

Abstract

Unit pricing refers to the display of an item’s price per unit measure (e.g., per ounce). The present study experimentally investigates how the presence of unit price information affects consumers’ grocery purchase decisions and shopping task perceptions in the common situation where prepackaged products are on offer under different brand names and in variable package sizes. Study 1 shows that when there is unit pricing, consumers adopt the unit price as a diagnostic cue for comparing the economic losses associated with the product options. This in turn shifts their choices towards the lower unit priced options. Unit pricing also improves their task perceptions. Study 2 shows that when consumers are under time pressure, unit pricing results in a greater number of choices for the products with the cheaper unit price and an increased use of unit prices, while there continues to be an enhancement in task perceptions regardless of the available time. It is concluded that unit price information improves shopping task perceptions, results in quicker shopping task completion, and in consumers being better able to find the offer that represents the best value for them. Based on the findings retailers are advised to endorse and provide unit pricing wherever possible.