Long-standing Impact of Hohenheim Study: Introduction of Retail Prices Due to Contribution
In 1991, Dr. Wolfgang Frey, a researcher at the University of Hohenheim, conducted a groundbreaking study that exposed a significant issue in supermarket pricing. His research revealed that many pre-packaged products lacked basic price labeling, making it difficult for consumers to find the most affordable options.
Before the turn of the century, shopping at a supermarket was a different experience. Price tags typically displayed only the final price, making it challenging for consumers to compare prices and find the best deals. This issue was further highlighted in a study conducted by Dr. Frey, who tested the consumer-friendliness of the then-existing price labeling regulations.
The study involved 20 participants who were given twelve tasks involving price comparison of various pre-packaged daily necessities, such as detergents and rice. The results were startling. Only one participant could solve all twelve tasks correctly, but she needed half an hour to do so. The remaining participants, on average, took 19 minutes to complete the tasks, and many would have spent 7.5% more due to incorrect calculation results.
Dr. Frey concluded that the multitude of different standard package sizes without prescribed unit prices led to overload. The shopping test showed that the lack of clear pricing information led to confusion and potentially more expensive shopping for consumers.
The findings of this study caught the attention of consumer protection associations, leading to a push for a fundamental change in pricing regulation. However, it wasn't until September 1, 2000, that a legal basis for the indication of the unit price on pre-packaged goods came into force. Today, consumers can usually find both the final price and the basic price on product price tags, making shopping a more informed and efficient experience.
Dr. Wolfgang Frey can be contacted for media inquiries at +49 711 459 22003 or [email protected]. For more information about the University of Hohenheim, visit their press office at https://www.uni-hohenheim.de/presse.
While the direct impact of Dr. Frey's 1991 study on the introduction of mandatory basic price labeling in retail trade for pre-packaged food and other daily necessities is not explicitly documented, it is generally believed that such studies helped highlight consumer information gaps and the need for clearer pricing transparency in retail. Such policies aim to help consumers compare prices and make informed decisions.
