Consumer Price Perception A MultiDimensional Analysis of Perceived Quality and AdaptationLevel Price as Determinants of Price Perception
Consumer Price Perception A MultiDimensional Analysis of Perceived Quality and AdaptationLevel...
Anttila, Mai
1978-02-01 00:00:00
Consumer Perception—Price Consumer Price Perception: A Multi-Dimensional Analysis of Perceived Quality and Adaptation—Level Price as Determinants of Price Perception Mai Anttila Price is a significant determinant of con the perceptual difference between the they had different educational and voca sumers' purchase decisions. It is assumed in adaptation-level price and the list price of the tional backgrounds. The respondents in the this study that the analysis of consumer convenience sample were divided into four brand—had the best degree of fit in the case price perception is of vital importance to different price level treatment groups which of colour television sets, but not in the case understanding the effects of price in were given different information of the prices of toothpastes. According to these tentative formation on purchase decisions. Earlier it research findings the budget constraint of the experimental brands. has been studied experimentally in isolation, seems to have more influence on the colour Before coming to the experimental ses how a single price cue affects consumer per television price perception than on the tooth sions the respondents received by mail ception of a product's quality. In this study brochures on the colour television models paste price perception. there is the main difference that the influence under study. The respondents answered first There is a need to test the neutral point of an array of prices for the product on the in the sessions to questions on their expected model empirically in the future with more consumer's price perception is examined price for the products as well as on the brands in each product category and with a experimentally at the same time. highest and lowest acceptable prices before wider range of prices. The research findings they received any explicit price information. The principal objective of this study is to suggest that studying different kinds of Next perceived prices and perceived quality develop a model of consumer price per product cues within the adaptation-level attributes of the four brands in both ception within the framework of the psycho theory framework could help in building an product categories were measured, on the physical adaptation-level theory and to integrative consumer information proces one hand, with ordinary unidimensional 7- test it empirically. The reason for using a sing model. In addition to this, consumer point scales and, on the other hand, the psychological framework is the atheoretical price perception research will produce useful relationship between price and quality per nature of the experimental price and quality information for the managers developing ception was studied with Stapel's two-dimen perception research in marketing. A con pricing strategies for their products. Of the sional price-quality maps. The neutral point ceptual model of consumer price perception decision areas of marketing mix especially model of consumer price perception was is proposed in the study. On the basis of the pricing is perhaps the least analysed with studied with both regression analysis tech model it is hypothesised that price per behavioural concepts and methodology. nique and, at an individual level, with ceptions concerning a brand tend to con Cost-based pricing strategies are still domi Spearman rank correlation coefficients so form to a neutral point model. According to nant The launching of new products to the that the ties in the ranked observations were the model the adaptation-level price for the market may fail or loose some of its accounted for. product serves as the reference point of judg efficiency due to a wrong price perceived by ments. Brand price perception is also hypo consumers. In product planning there is a The research findings obtained at the two thesised to depend on the brand's quality and need for information on the perceived quality different levels of analysis were in accord quality attributes perceived by the con and quality attributes in relation to different ance with each other. The perceived sumer. price sets of competing brands on the expensiveness of the brand and the per market. Earlier in the price perception A pre-test was conducted and a total of 84 ceived quality of the brand measured with research there were conducted extensive students and 94 consumers, who were the price-quality map technique produced surveys by Gabor and Granger. The experi nearly as good a coefficient of multiple deter students of adult education institutes in mental method applied in this research mination as the more traditional measures in Helsinki received mail questionnaires in appears to be a cheaper and more dynamic spring 1976. On the basis of the answers it the case of colour television sets, but a better method for managerial use. The price-setters was decided that four brands would serve as coefficient of multiple determination in the using the latter method can see the conse the choice set in both product categories, case of toothpastes. The signs of the re quences of different prices for their products colour television sets and toothpastes. The gression coefficients of the price and quality in relation to the prices of the competitors. variables showed that the unidimensional results of the pre-test led also to selection of Research within the adaptation-level theory and the two-dimensional measures produce the five salient attributes of colour television framework would also yield useful infor sets: durability, colour quality, overall tech different results. The model versions tested mation for public policy purposes. Neutral nical quality, service and design, and to with the price-quality map measures support point model of price perception could be selection of the three salient quality attri the positive price-quality perception relation applied to research on the use of price butes of toothpastes: taste, teeth cleaning ship suggested by the earlier investigators in information from the consumer protection ability and healthiness. In another pre-test, marketing. point of view. Consumers seem to have a information of the market prices of the In all regression versions of the neutral tendency to change their judgments of products was sought out. point model both the quality and the price prices, when firms push their price sets The data for testing the neutral point difference terms had statistically significant upwards. In this case according to the model of price perception was gathered regression coefficients. The difference be adaptation-level theory the new price sets experimentally with a semi-convenience tween the consumer's adaptation-level price lead to higher adaptation-level prices for the sample in summer 1976. This consisted of a and the list price of the brand was the more product. total of 411 subjects, who were chosen among important exlaining variable of the price students of adult education institutes in perception at an initial stage of the con Full details of the research reported here Helsinki, and participated in the experi sumer's purchase decision process according can be obtained by writing for Publication B- mental sessions in groups of 20-45 subjects. to the beta-coefficients. The price perception 26 to the Helsinki School of Economics, The respondents were single and married model version with the quotient quality Runeberginkatu 14-16, 00100 Helsinki 10, men and women in the 20-4 5 age group and term—the perceived quality score divided by Finland.
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Consumer Price Perception A MultiDimensional Analysis of Perceived Quality and AdaptationLevel Price as Determinants of Price Perception
Consumer Perception—Price Consumer Price Perception: A Multi-Dimensional Analysis of Perceived Quality and Adaptation—Level Price as Determinants of Price Perception Mai Anttila Price is a significant determinant of con the perceptual difference between the they had different educational and voca sumers' purchase decisions. It is assumed in adaptation-level price and the list price of the tional backgrounds. The respondents in the this study that the analysis of consumer convenience sample were divided into four brand—had the best degree of fit in the case price perception is of vital importance to different price level treatment groups which of colour television sets, but not in the case understanding the effects of price in were given different information of the prices of toothpastes. According to these tentative formation on purchase decisions. Earlier it research findings the budget constraint of the experimental brands. has been studied experimentally in isolation, seems to have more influence on the colour Before coming to the experimental ses how a single price cue affects consumer per television price perception than on the tooth sions the respondents received by mail ception of a product's quality. In this study brochures on the colour television models paste price perception. there is the main difference that the influence under study. The respondents answered first There is a need to test the neutral point of an array of prices for the product on the in the sessions to questions on their expected model empirically in the future with more consumer's price perception is examined price for the products as well as on the brands in each product category and with a experimentally at the same time. highest and lowest acceptable prices before wider range of prices. The research findings they received any explicit price information. The principal objective of this study is to suggest that studying different kinds of Next perceived prices and perceived quality develop a model of consumer price per product cues within the adaptation-level attributes of the four brands in both ception within the framework of the psycho theory framework could help in building an product categories were measured, on the physical adaptation-level theory and to integrative consumer information proces one hand, with ordinary unidimensional 7- test it empirically. The reason for using a sing model. In addition to this, consumer point scales and, on the other hand, the psychological framework is the atheoretical price perception research will produce useful relationship between price and quality per nature of the experimental price and quality information for the managers developing ception was studied with Stapel's two-dimen perception research in marketing. A con pricing strategies for their products. Of the sional price-quality maps. The neutral point ceptual model of consumer price perception decision areas of marketing mix especially model of consumer price perception was is proposed in the study. On the basis of the pricing is perhaps the least analysed with studied with both regression analysis tech model it is hypothesised that price per behavioural concepts and methodology. nique and, at an individual level, with ceptions concerning a brand tend to con Cost-based pricing strategies are still domi Spearman rank correlation coefficients so form to a neutral point model. According to nant The launching of new products to the that the ties in the ranked observations were the model the adaptation-level price for the market may fail or loose some of its accounted for. product serves as the reference point of judg efficiency due to a wrong price perceived by ments. Brand price perception is also hypo consumers. In product planning there is a The research findings obtained at the two thesised to depend on the brand's quality and need for information on the perceived quality different levels of analysis were in accord quality attributes perceived by the con and quality attributes in relation to different ance with each other. The perceived sumer. price sets of competing brands on the expensiveness of the brand and the per market. Earlier in the price perception A pre-test was conducted and a total of 84 ceived quality of the brand measured with research there were conducted extensive students and 94 consumers, who were the price-quality map technique produced surveys by Gabor and Granger. The experi nearly as good a coefficient of multiple deter students of adult education institutes in mental method applied in this research mination as the more traditional measures in Helsinki received mail questionnaires in appears to be a cheaper and more dynamic spring 1976. On the basis of the answers it the case of colour television sets, but a better method for managerial use. The price-setters was decided that four brands would serve as coefficient of multiple determination in the using the latter method can see the conse the choice set in both product categories, case of toothpastes. The signs of the re quences of different prices for their products colour television sets and toothpastes. The gression coefficients of the price and quality in relation to the prices of the competitors. variables showed that the unidimensional results of the pre-test led also to selection of Research within the adaptation-level theory and the two-dimensional measures produce the five salient attributes of colour television framework would also yield useful infor sets: durability, colour quality, overall tech different results. The model versions tested mation for public policy purposes. Neutral nical quality, service and design, and to with the price-quality map measures support point model of price perception could be selection of the three salient quality attri the positive price-quality perception relation applied to research on the use of price butes of toothpastes: taste, teeth cleaning ship suggested by the earlier investigators in information from the consumer protection ability and healthiness. In another pre-test, marketing. point of view. Consumers seem to have a information of the market prices of the In all regression versions of the neutral tendency to change their judgments of products was sought out. point model both the quality and the price prices, when firms push their price sets The data for testing the neutral point difference terms had statistically significant upwards. In this case according to the model of price perception was gathered regression coefficients. The difference be adaptation-level theory the new price sets experimentally with a semi-convenience tween the consumer's adaptation-level price lead to higher adaptation-level prices for the sample in summer 1976. This consisted of a and the list price of the brand was the more product. total of 411 subjects, who were chosen among important exlaining variable of the price students of adult education institutes in perception at an initial stage of the con Full details of the research reported here Helsinki, and participated in the experi sumer's purchase decision process according can be obtained by writing for Publication B- mental sessions in groups of 20-45 subjects. to the beta-coefficients. The price perception 26 to the Helsinki School of Economics, The respondents were single and married model version with the quotient quality Runeberginkatu 14-16, 00100 Helsinki 10, men and women in the 20-4 5 age group and term—the perceived quality score divided by Finland.
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