Price and Consumer Behaviour—A Review

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.