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D Cox
The measurement of information value: a study in consumer decision making
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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 of Product & Brand Management – Emerald Publishing
Published: Jun 1, 2000
Keywords: Product quality; Product strategy; Consumer behaviour
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