For the past four decades, dozens of researchers have studied consumer price knowledge, often with disagreements on the
extent of consumer’ ignorance about prices. While some of these disagreements have been attributed to research design
variations among studies, no inquiry has yet been made on the role of the economic environment on consumer price
knowledge. Nevertheless, environmental factors such as interest rates, unemployment, and economic growth may significantly
influence consumers’ knowledge of prices. Certain economic environments may therefore provide marketers with the
ability to utilize pricing tactics which rely on limitations in consumers’ knowledge of product prices. Using a meta-analytic
framework, this paper synthesizes the results of 297 previous price knowledge studies to document the effects of inflation,
unemployment, GDP growth, interest rates, country of study, and passage of time on consumer price knowledge. The
meta-analysis results demonstrate that economic factors have considerable influence on explaining variations in consumer
price knowledge. Managerial and public policy implications of the findings in light of turbulent economic environments are
discussed. q2001 Elsevier Science B.V. All rights reserved.