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Unit pricing information printed on supermarket shelf labels (price tickets) illustrates the quantity of product by a unit of measure (price per 100g, price per 100ml).
Unit Pricing was originally developed by the Berkeley Co-op[1] and was designed as a device to enable customers to make comparisons between grocery products of different sizes and brand, hence enabling informed purchase decisions. The provision of prescribed product quantities enable supermarket shoppers to discriminate intelligently between competing goods of different shapes and sizes.[2]
There remains debate about the extent of consumer awareness, understanding and adoption of this information. It is argued that as a measure of a consumer’s understanding of unit pricing, ‘comprehension’ is richer in content and thus reveals more information compared to ‘awareness’.[3] Although higher levels of awareness is self reported, only 56% of shoppers could provide satisfactory descriptions of how to use Unit Price information.[4] The difference between reported awareness and comprehension is often large.[5]
Unit Pricing was implemented into British, European Union and North American markets during the early 1970s.[6] On December 2009, the Australian federal government implemented Trade Price legislation to force all large supermarkets and groceries stores to display Unit Pricing information on shelf labels.[7]
As products have become qualitatively diverse, comprising various ply constructions, densities and concentrations, consumer awareness and usage of Unit Price information continues to hold academic interest.[8]
The benefits of Unit Pricing have been widely reported in the literature. It has been argued that Unit Pricing reduces time spent comparing brands, eliminates confusion relating to price calculations and ultimately allows shoppers to save money at the register.[9] Unit pricing enables the consumers to rationally evaluate the most economic package size and brand.[10] Accordingly, the time spent determining the most economic purchase is condensed substantially.[11] errors in product price comparisons are significantly reduced[12] and importantly, lower grocery shopping expenditure is attained.[13]
Aaker, D. A. and G. T. Ford. 1983. Unit Pricing Ten Years Later: A Replication. Journal of Marketing 47 (Winter): pp. 118–122.
Boya, U. O. 1987. Consumer Usage of Unit Pricing. Journal of Consumer Studies and Home Economics 11 (3): pp. 279–293.
Carman, J. M. 1973. A Summary of Empirical Research in Unit Pricing. Journal of Retailing 48 (Winter): p. 63-72.
Houston, M. J. 1972. The Effect of Unit Pricing on Choices of Brand and Size Economic Shopping. Journal of Marketing 36 (July): pp. 51–69.
Isakson, H. R. and A. R. Maurizi. 1973. The Consumer Economics of Unit Pricing. Journal of Marketing Research 10 (August): pp. 277–285.
Kilbourne, W. E. 1974. A Factorial Experiment on the Impact of Unit Pricing on Low-Income Consumers. Journal of Marketing Research 11 (November): pp. 453–455.
Lamont, L. M., J. Rothe and C. Slater. 1972. Unit Pricing: A Positive Response to Consumerism. European Journal of Marketing 6 (4): pp. 223–233.
McCullough, D. T. and D. I. Padberg. 1971. Unit Pricing in Supermarkets: Alternatives, Costs and Consumer Reactions. Search Agriculture 1 (January): 1-22.
McElroy, B. F. and D. A. Aaker. 1979. Unit Pricing Six Years After Introduction. Journal of Retailing 3 (Fall): pp. 44–57.
McGoldrick, P. and H. Marks. 1983. A Case for Unit Pricing? Journal of Retail and Distribution Management (July/August): pp. 46–50.
Mitchell, V. W., D. Lennard and P. McGoldrick. 2003. Consumer Awareness, Understanding and Usage of Unit Pricing. British Journal of Management 14: pp. 173–187.
Miyazaki, A. D., D. E. Sprott and K. C. Manning. 2000. Unit Prices on Retail Shelf Labels: An Assessment of Information Prominence. Journal of Retailing 76 (1): pp. 93–112.
Monroe, K. B. and P. J. LaPlaca. 1972. What are the Benefits of Unit Pricing? Journal of Marketing 36 (July): pp. 16–22.
Price, C. C. 1978. Consumer Awareness and Use of Unit Pricing: U.S. Department of Agriculture.
Russo, E. J. 1977. The Value of Unit Price Information. Journal of Marketing Research 14 (May): pp. 193–201.
Russo, E. J., G. Krieser and S. Miyashita. 1975a. An Effective Display of Unit Price Information. Journal of marketing 39 (April): pp. 11–19.
Russo, J. E., G. Krieser and S. Miyashita. 1975b. A effective display of unit price information. Journal of Marketing 39 (2): pp. 11–19.
Yoa, J., H. Oppewal and Y. He. eds. 2010. Effects of unit pricing on consumer grocery shopping behaviour. Australian and New Zealand Marketing Academy Conference, Christchurch. Christchurch: University of Canterbury.
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