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Price Information Overload as an Indirect Consequence of Omnibus Directive Implementation – a Theoretical Approach to PIO
Abstract
Theoretical background: Information overload (IO) occurs when information flow exceeds the information needs. Nowadays IO is perceived as a permanent feature of modern society. Undoubtedly, IO is a negative phenomenon due to its negative impact on consumer behaviour. Price information overload (PIO) is a specific type of IO. PIO is a phenomenon that can arise due to a change in EU law. The Omnibus Directive, implemented in Poland as an EU member state, has created a new requirement for sellers to communicate promotional prices. This requirement includes the lowest price in force 30 days before introducing the price reduction (known as the omnibus price). PIO occurs when there is an excess of mandatory promotional price information provided to the buyer.
Purpose of the article: This article attempts to introduce the concept of price information overload, which has not been previously discussed in the marketing literature to the best of the author’s knowledge. The paper also highlights the indirect consequences of implementing the Omnibus Directive in an EU member state.
Research methods: This article introduces a new type of information overload called “price information overload” (PIO) and extends the concept of information overload (IO). The article is a theoretical paper that presents PIO’s essence and some graphical representations. The author, who specializes in pricing, developed the PIO concept by starting with the scientific literature on IO.
Main findings: The author posits that the Omnibus Directive does not inherently pose a risk of PIO, but rather that sellers may inadvertently contribute to it through their pricing practices. The PIO concept highlights the relevance and actuality of the IO issue in communicating promotional prices. The idea of being overwhelmed with too much price information is a practical concern. Consequently, the author suggests that a potential deluge of price information be regarded as an element of a nuanced system of price communication.
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DOI: http://dx.doi.org/10.17951/h.2024.58.5.69-82
Date of publication: 2024-12-20 09:59:54
Date of submission: 2024-02-16 13:37:04
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