Benchmarking consumer perceptions of product quality with price: An exploration (original) (raw)

Price, brand name, and product composition characteristics as determinants of perceived quality

Journal of Applied Psychology, 1971

While price and brand image have both been found to be determiners of product quality perception, the potency of these two cues has never been directly compared. Moreover, those studies which found price to be a determiner of perceived quality manipulated only price information, without permitting actual composition characteristics to vary across brands. A 2X2X2X3 factorial experiment, using 136 adult male beer drinkers, and four test beers, examined the effects of price, composition differences, and brand image cues on the perception of beer quality. Price was found to serve as an indicant of product quality when it was the only cue available but not when embedded in a multicue setting. Brand image had a stronger effect upon quality perception, particularly for brands with strong positive images. In addition, it was found that neither price nor brand name had significant effects on perceived quality except when product composition characteristics were allowed to vary between product samples. Last, in contrast to earlier findings, the data suggest that beer drinkers possess at least some ability to distinguish among different brands of beer on the basis of composition (i.e., taste and aroma) cues alone.

Position of Price in Determinants of Quality of Products (Case Study)

Journal of Service Science and Management, 2015

Price plays a significant role in product quality in today communities, and consumers may not be aware of the quality and characteristics of the products they buy, despite of presence of distinctive products. They often are not able to compare different brands in terms of the quality. Although many studies on price-quality relationship support this common belief, some other studies indicate that this relationship depends on the specific type of the product, and overall presence of such relationship is less probable. Current work aims at investigating the relationship between product price and purchaser perception of the quality in durable, less durable and non-durable products in Kish Island's markets as a case study. Three selected products include: LED TV as a durable product, t-shirts as a semi-durable product, and toothpaste as a non-durable product. Research tool is a questionnaire and collected data are analyzed using SPSS V.19 software. Results of the research indicate that price is one of factors reflecting the quality. It was true about t-shirt more than two other products.

The Influence of Product Quality and Price on Purchase Decisions

Almana : Jurnal Manajemen dan Bisnis

Purchase decisions are actions taken by consumers to buy products by carrying out existing considerations, including how product quality and price. Therefore, both have a significant role in influencing Purchase Decisions. The purpose of this research is to find out how Product Quality, Price, and Purchase decisions are applied by Mixue cafe. And to find out how big the influence of Product Quality on Purchase Decisions, the effect of Price on Purchase Decisions, and the influence of Product Quality and Price on Purchase Decisions. In this study, the sample used was consumers who were respondents in this study as many as 88 people, with questionnaire data collection techniques and multiple linear analysis, to process data using SPSS 21 For Windows and Microsoft Excel programs, the analytical method used was the quantitative method with analysis descriptive and verification. The results of this study state that the product quality is in a good category, the price is in the good enoug...

Price as a signal of product quality: Some experimental evidence

2011

We separate the budgetary and non-budgetary effects of price on demand using choice data from wine tasting experiments in which consumers tasted wines of different quality accompanied by fictitious price information. The non-budgetary effect is present and nonlinear: it is strongly positive between e 3 and e 5, and undetectable between e 5 and e 8. We find a similar nonlinear price-quality relationship in a large sample of wine ratings from the same price segment, supporting the hypothesis that consumer behavior in the experiment is consistent with rationally using prices as signals of quality. Price signals also have greater importance for inexperienced (young) consumers.

A research program for establishing the validity of the price-quality relationship

Journal of the Academy of Marketing Science, 1988

there is an actual positive relationship between price and product quality, and (2) whether buyers perceive a positive relationship between price and product quality. Although there has been a plethora of studies on the relationship, there is little agreement on what we know about the relationship. The paper assesses the current state of knowledge on the relationship and argues for a better conceptual framework for understanding the price-quality relationship. Then the paper outlines a systematic research program for establishing the validity of the relationship, and establishes a set of criteria .for evaluating the contribution to knowledge of .future research on the price-quality relationship.

The Insights on Perceived Price-Quality

INTERNATIONAL RESEARCH JOURNAL OF …, 2012

It is always coming with price that contributes to dynamics on perceived price-quality. This research employs four theories namely absolute and relative price differences (Theory-1), a "free" product (Theory-2), consumer perception of price unfairness (Theory-3), and consumer perception of price as an indicator of product quality (Theory-4). They are integrated and synchronized to provide interpretation framework. Using Consistency Test and phenomenological approach the author rationalizes participants' responses around the issues of price and benefit to get some insights on perceived price-quality.

Effect of Product Quality, Price, and Promotion on Purchase Decisions

Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management, 2019

This study aims to determine the effect of Product Quality, Price, and Promotion on the Purchase Decision of Fragrant Buds. The sampling technique used was purposive sampling with the following criteria: undergraduate students University in Yogyakarta and South Sumatera, with 200 respondents. The analysis technique used is multiple linear regression analysis and hypothesis testing using the F test together (simultaneous) and partial t-test. The results of the analysis show that the variables of Product Quality, Price, and Promotion jointly influence and significantly influence the Decision of Purchasing. Then partially, the three independent variables consisting of Product Quality, Price, and Promotion are the positive and significant effects on the purchase decision.

On Consumer Beliefs about Quality and Taste

Marketers and researchers alike typically regard products as differentiated by quality (modeled via vertical differentiation) or taste (modeled via horizontal differentiation). This research examines consumer beliefs about product differentiation. For a wide variety of product pairs, different consumers hold divergent beliefs about whether each pair is a matter of quality (such that one product is objectively better) or taste (such that one product is a better match with their own personal preferences). These beliefs have meaningful consequences. When consumers believe their chosen products are objectively better rather than better matches with their preferences: (1) they are willing to pay more for the chosen product over the alternative ; (2) they self-reference less when explaining their choices; and (3) they are more likely to make transitive inferences from choices across other consumers. Observing others' contradictory choices increases the likelihood of believing those products differ by taste rather than quality. Understanding consumer beliefs about product differentiation has implications for understanding consumer decision delegation and decisions that are made in group contexts and for strategic decisions including customer segmentation, product positioning, and pricing policies. S ome products are better than others. A water filter that removes 99.9% of contaminants is better than one that removes 99%. Other products are matters of individual taste. A lemon popsicle is neither better nor worse than a lime popsicle, yet many consumers prefer one to the other. These two examples anchor the ends of a product differentiation continuum. The water filters differ in quality: the product itself is the source of value, and the superiority of one over the other is a matter of fact. The popsicles differ in taste: the match between the product and the consumer's preferences is the source of value, and the superiority of one over the other cannot be established as a matter of fact. The present research characterizes consumer beliefs about product differentiation—that is, whether the differences between products are matters of quality or taste. Different consumers hold divergent beliefs: across a wide variety of brand pairs, the minority belief regarding whether the differences are matters of quality or taste is held by more than a third of consumers on average. Such discrepancies across consumers are important: we find these beliefs affect willingness to pay and consumers' reasoning about their own choices and those of others. We report five key findings, each one holding constant the set of products. First, for a variety of sets of products, consumers hold divergent beliefs about whether the