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Managing quality cues for product‐line pricing

Managing quality cues for product‐line pricing When firms offer consumers a choice of price-quality levels - the "good-better-best" choice - a challenge for managers is how to set price differentials. This article examines how consumer preferences across such price tiers are influenced by non-price cues about quality. The results suggest that the pattern of preferences observed across price-tiers can be influenced by: how quality cues (as well as price levels) are framed; the distribution of various price-quality tradeoff strategies across potential buyers; and the degree of perceived quality variability within the product category. Specifically, the use of ratio-scaled cues is most likely to impact "trading-up" behavior when there are a large number of consumers who exhibit "best value-seeking" behavior in a market. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Product & Brand Management Emerald Publishing

Managing quality cues for product‐line pricing

Journal of Product & Brand Management , Volume 9 (3): 14 – Jun 1, 2000

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References (23)

Publisher
Emerald Publishing
Copyright
Copyright © 2000 MCB UP Ltd. All rights reserved.
ISSN
1061-0421
DOI
10.1108/10610420010332403
Publisher site
See Article on Publisher Site

Abstract

When firms offer consumers a choice of price-quality levels - the "good-better-best" choice - a challenge for managers is how to set price differentials. This article examines how consumer preferences across such price tiers are influenced by non-price cues about quality. The results suggest that the pattern of preferences observed across price-tiers can be influenced by: how quality cues (as well as price levels) are framed; the distribution of various price-quality tradeoff strategies across potential buyers; and the degree of perceived quality variability within the product category. Specifically, the use of ratio-scaled cues is most likely to impact "trading-up" behavior when there are a large number of consumers who exhibit "best value-seeking" behavior in a market.

Journal

Journal of Product & Brand ManagementEmerald Publishing

Published: Jun 1, 2000

Keywords: Product quality; Product strategy; Consumer behaviour

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