Premium
Learning unit prices in a new currency
Author(s) -
Juliusson Asgeir,
Gamble Amelie,
Gärling Tommy
Publication year - 2006
Publication title -
international journal of consumer studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.775
H-Index - 71
eISSN - 1470-6431
pISSN - 1470-6423
DOI - 10.1111/j.1470-6431.2006.00498.x
Subject(s) - unit (ring theory) , currency , economics , product (mathematics) , duration (music) , unit of account , unit price , monetary economics , econometrics , microeconomics , psychology , mathematics , mathematics education , art , geometry , literature
In the European Union, some citizens adapt to the Euro transition by converting the new currency to the old familiar one (‘re‐scaling’), whereas some adapt by learning the product prices in the Euro (‘re‐learning’). Employing a total of 65 undergraduates in two laboratory experiments, factors that may make such price learning difficult were identified. In Experiment 1, learning of unit prices for cellular phone calls from sequences of duration–price examples was more difficult when a fixed connection fee is added to the price of each call. Witnessing the adverse impact of price variation, Experiment 2 showed that simultaneous learning of several unit prices was less accurate than learning of single unit price.