A qualitative study of adaptation to the euro in the Republic of Ireland: I. attitudes, the ‘euro illusion’ and the perception of prices

Abstract

This is the first of two reports of a study using semi-structured, in-depth interviews to explore the current and recollected experiences of Irish people for the period before, during, and after the introduction of euro notes and coins (1 January 2002). Twenty-four adults, 12 males and 12 females, covering a range of ages and educational attainment, were interviewed between October 2002 and February 2003. We found that most had welcomed the new currency initially, though some had felt less positive about it, whilst current experiences were more mixed. People's explanations for their attitudes seemed to focus more on the economic and practical aspects of currency change rather than symbolic meanings. Initially, most had experienced a euro illusion (prices in euros seeming to be more expensive than in punts). However, for most, the strength of the illusion appeared to diminish quite quickly. Nonetheless, current prices were believed to be higher, and many respondents attributed this either directly or indirectly to the change of currency. Although independent evidence found that there had been price increases in certain sectors, it was concluded that perceived price rises were, in part, illusory, and driven by expectations and selective price monitoring.

Perceptions and expectations of price changes and inflation: A review and conceptual framework

“…Koskimäki (2005, p. 4) reported that in Finland two months prior to the introduction of the euro: '76% of the population thought that the introduction will raise the overall price level'. In Ireland, respondents in an interview study gave several reasons for believing that the introduction of the euro would lead to price increases: (1) prices in euros would be rounded up; (2) price rises would be hidden at the transition; and (3) there would be effects on the Irish economy of joining the Eurozone (Ranyard et al, 2005). Such expectations, then, could well have played a part in the rise in perceived inflation in Eurozone countries after the introduction of the euro.…”

Euro Stories: The Irish Experience of Currency Change

“…The first part of the paper presents an overview of the results of an interview study conducted in Ireland (see Ranyard, Burgoyne, Saldanha, & Routh, 2005;Ranyard, Routh, Burgoyne, & Saldanha, 2007, for details), which aimed for an in-depth exploration of perceptions, feelings and experiences, and how these might have changed during the first year of adaptation to the euro. The broad aim of qualitative enquiry such as this is to elucidate 'the meaning of experience, actions and events as they are interpreted through the eyes of particular participants, researchers and (sub)cultures and ….…”

Interaction effects of mood induction and nominal representation of price on consumer choice

“…In real life consumers report having difficulties adapting to the euro (AaltoSetälä & Riajas, 2003;Cannon & Cipriani, 2003, Kirchler & Meier-Pesti, 2002Marques & Dehaene, 2004, Meier-Pesti & Kirchler, 2001Ranyard, Routh, Saldanha, & Burgoyne, 2005). Commonly, it has been found that consumers continue to convert from the euro to their old currency several months after the transition has taken place.…”