It seems intuitively reasonable to consider price as a factor that reduces the uncertainty associated with purchasing. This
occurs principally for products that are not well known to the customer or products that the customer has doubts about. It should, however,not be forgotten that price is not the only stimulus to which buyers respond A whole gamut
of theories on how consumers form an idea of the price they expect to pay has arisen in recent years 6 – 10 highlighting that both the price range the customer encounters at the time of purchase (henceforth referred to as ‘ observed price ’ ) and the price they actually pay have effects on later purchases. Consumers adapt themselves to prices, observe their fl uctuations and behave accordingly.