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Conference Proceedings (1999), Marketing and Competition in the Information Age-28th EMAC Conference, Humboldt University, Berlin

Perception of a Price Increase According to its Expression in Francs or Euros

Changing into the euro may modify consumers' perception of prices, in the sense of their perceiving a smaller difference when prices are converted into euros. With regard to pricing policy, the consequences of this "accordion effect" are important, notably for distributor brands, which have to ensure a price differential in relation to national brands. An experimental study, carried out in an exploratory fashion on a convenience sampling, shows that the gap perceived between the reference price and the proposed price depends not only on the percentage increase of the price but also on the initial price in terms of absolute value. It also confirms the perception of a lower price when expressed in euros as opposed to francs, thus confirming the likelihood of an accordion effect when the transition to the euro occurs.

DESMET, P. (1999). Perception of a Price Increase According to its Expression in Francs or Euros. In: Marketing and Competition in the Information Age-28th EMAC Conference. Humboldt University, Berlin.