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Article

Injazz J. Chen, Atul Gupta and Walter Rom

Studies the relationship between perceived price and perceived qualityfor the three types of services, namely, pure, mixed, andquasi‐manufacturing classified by Chase and…

Abstract

Studies the relationship between perceived price and perceived quality for the three types of services, namely, pure, mixed, and quasi‐manufacturing classified by Chase and Tansik, and the relative importance of five dimensions of service quality identified by Parasuraman et al. Finds that the relationship between perceived price and the five dimensions of service quality appears to be very weak for pure and quasi‐manufacturing services, but is statistically significant for mixed service. Reliability dimension is statistically significant for all three types of service. Tangible dimension is a critical variable for mixed service while the empathy dimension is important for quasi‐manufacturing service. On the other hand, the relationship between perceived price and overall service‐quality is significant for quasi‐manufacturing service, but is weak for pure and mixed services.

Details

International Journal of Service Industry Management, vol. 5 no. 2
Type: Research Article
ISSN: 0956-4233

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Book part

Kent B. Monroe

This chapter summarizes the behavioral pricing research findings of price and how buyers respond to price. This includes the relationship between price and perceived value…

Abstract

This chapter summarizes the behavioral pricing research findings of price and how buyers respond to price. This includes the relationship between price and perceived value and the decision heuristics that help us understand how price influences perceptions of value and eventual product choice. Buyers also use price as an indicator of product quality, and customers’ perceptions of quality, benefits, and value affect how they will respond to a purchase situation. In addition, buyers’ perceptions of the sacrifice affect the purchase decision, that is the degree that consumers reflect on the amount that they would “give up” by paying the monetary price for a product may vary according to a variety of situations and conditions, such as type of product or service, or the perceived unfairness of the price, or if the buyer perceives a brand is superior to competing brands. The chapter also discusses how buyers trade off or compare the perceived gains arising from price-quality judgments versus the perceived sacrifice required to acquire the product or service, including whether buyers integrate price and other attribute information following a nonlinear (proportional) or linear (subtractive) process. It also summarizes research on price as a multidimensional attribute, considered with additional dimensions such as warranty coverage, and warrantor reputation. Finally, the chapter examines perceived product value as being decomposed into its (1) perceived acquisition value (the expected benefit to be gained from acquiring the product less the net displeasure of paying for it) and (2) perceived transaction value (the perceived merits or fairness of the offer or deal).

Details

Visionary Pricing: Reflections and Advances in Honor of Dan Nimer
Type: Book
ISBN: 978-1-78052-996-7

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Book part

Kent B. Monroe

This chapter traces the development of the pricing research program of Kent Monroe, beginning with his doctoral dissertation and continuing to the present time. Drawing on…

Abstract

This chapter traces the development of the pricing research program of Kent Monroe, beginning with his doctoral dissertation and continuing to the present time. Drawing on psychophysics and adaptation-level theory the early research efforts concentrated on validating two important concepts relative to behavioral pricing research: reference price and acceptable price range. Then the behavioral pricing research program expanded to explore how the context of a purchase situation, including the structure of the prices available for judgment, influences buyers' price perceptions and willingness to buy. In the early years his research included pricing models and research on patronage behavior. Subsequently, concentrating primarily on behavioral pricing research, he began to integrate findings from the research program into examining how various sellers pricing strategies and tactics influence buyers' judgments and purchase decisions. These efforts led to the first edition of his book Pricing – Making Profitable Decisions published in 1979. The book was subsequently revised and expanded in 1990 and again in 2003.

Details

Review of Marketing Research: Special Issue – Marketing Legends
Type: Book
ISBN: 978-0-85724-897-8

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Article

Justin Beneke, Ryan Flynn, Tamsin Greig and Melissa Mukaiwa

This study endeavours to examine the influence of perceived product quality, relative price and risk, respectively, on perceived product value and, ultimately, consumers'…

Abstract

Purpose

This study endeavours to examine the influence of perceived product quality, relative price and risk, respectively, on perceived product value and, ultimately, consumers' willingness to buy private label household cleaning products.

Design/methodology/approach

Respondents (157) were recruited through an in‐store survey and the data analysed using partial least squares path modelling.

Findings

The results are similar to those proposed by Sweeney, Soutar and Johnson. Strong relationships between perceived relative price and perceived product value, as well as between perceived product value and willingness‐to‐buy, were found to exist. A negative relationship was observed between perceived product quality and perceived risk. The results indicate that establishing a value perception is critical in the buying process. Tangible cues exhibiting high quality (e.g. packaging, shelf space, media placement) need profound attention. Furthermore, it is suggested that risk (which plays an important part in the consumer decision process) is minimised through optimal retail service quality and customer reassurances.

Research limitations/implications

This study is limited in that respondents are consumers of a specific geographic region and demographic grouping. Findings may therefore not be generalisable, particularly with respect to other countries.

Originality/value

This is one of the first studies investigating consumers' perceptions of value, using the attributes of quality, risk and price, in an emerging market setting.

Details

Journal of Product & Brand Management, vol. 22 no. 3
Type: Research Article
ISSN: 1061-0421

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Article

Jung Ha‐Brookshire and So‐Hyang Yoon

In response to the popularity of multinational products with limited information on countries of origins, this study aims to explore factors influencing consumers'…

Abstract

Purpose

In response to the popularity of multinational products with limited information on countries of origins, this study aims to explore factors influencing consumers' perceived prices for multinational products.

Design/methodological approach

The study performed a 2 (COP)×2 (COM) within‐subjects randomized experimental research, using the USA and China as the countries of parts (COP) and the countries of manufacturing (COM) for cotton apparel. A total of 77 US consumers participated. Hierarchical multiple regression analyses were performed.

Findings

Consumers' income level was important for perceived prices on apparel products made in the USA and/or of US cotton. Expertise was also important for higher pricing of apparel made in the USA of US cotton, while familiarity with COO labeling laws negatively affected perceived prices when apparel was made in China. Perceived sustainability had the largest impact on consumers' perceived prices for apparel made in the USA of Chinese cotton.

Research limitations/implications

The study used a limited sample size and the data were collected through experimental studies. Generalization must be done with caution.

Practical implications

Apparel businesses may want to declare COP, if this country could provide cues to high quality, high price, or excellent design. Apparel businesses that would like to promote US products may want to target those who have a high sense of self‐efficacy and educate consumers with COO labeling rules and regulations.

Originality value

The findings offer significant factors affecting consumers' perceived price on multinationl products, providing business practice recommendations surrounding COP and COM.

Details

Journal of Consumer Marketing, vol. 29 no. 6
Type: Research Article
ISSN: 0736-3761

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Article

Fei Lee Weisstein, Mohammadreza Asgari and Shir-Way Siew

This paper aims to examine the effect of price promotion presentation formats on consumers’ green purchase intentions across various levels of greenness. Despite the…

Abstract

Purpose

This paper aims to examine the effect of price promotion presentation formats on consumers’ green purchase intentions across various levels of greenness. Despite the increasing awareness of environmental issues and green products among consumers, there is a gap between their green attitude and purchase intentions. Previous studies show that consumers’ degree of greenness varies and that price plays an important role in their green consumption decision-making.

Design/methodology/approach

Two between-subject experiments with 236 participants were used to examine our hypotheses and conceptual model.

Findings

The results show that different formats of price promotion presentations influence consumers’ purchase perceptions differently. Consumers with a high degree of greenness are attracted to promotions emphasizing gain, while those with a low degree of greenness prefer promotions underlining reduced loss. In addition, medium-greenness consumers show similar reactions to both formats. Our studies further demonstrate that consumers’ perceived value mediates the moderated effects of perceived quality and perceived savings on green purchase intentions.

Practical implications

This research helps marketers better design price promotions, taking into account the various levels of consumers’ greenness. The focus of reduced loss or gain of the promotional programs should be targeted at consumers with different levels of greenness.

Originality/value

This is the first paper to examine the role of price promotion presentation formats in consumer decision-making regarding green consumption. The study provides new insights concerning how to design price promotions to enhance the green purchase intentions of consumers.

Details

Journal of Product & Brand Management, vol. 23 no. 3
Type: Research Article
ISSN: 1061-0421

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Article

Junghwa Son and Byoungho Ellie Jin

Most marketing practices assume that consumers will buy when prices are low. This assumption, however, may not always hold true. Employing equity theory and Veblen’s…

Abstract

Purpose

Most marketing practices assume that consumers will buy when prices are low. This assumption, however, may not always hold true. Employing equity theory and Veblen’s theory of the leisure class, this study tested two moderating effects to ascertain the relationship between perceived price and purchase intention. The purpose of this paper is threefold: first, to examine the relationship between perceived price and willingness to purchase; second, to discover the effects of two moderators (perceived price fairness and vanity) on this relationship; and third, to compare how these moderating effects differ by consumers’ brand familiarity.

Design/methodology/approach

A total of 287 usable data sets were collected from college students in the southeastern region of the USA.

Findings

The findings showed no negative relationship between perceived price and willingness to purchase. Only perceived price fairness was found to moderate the perceived price–purchase intention relationship. Furthermore, the moderating effect of price fairness was only confirmed in the high brand familiarity group, while the moderating effect of vanity was only confirmed in the low brand familiarity group.

Research limitations/implications

Generalization of the findings is cautioned because findings may vary by demographic backgrounds.

Practical implications

Since purchase intention increases when price is fair even though price is high, marketers should put efforts into promoting and creating the perception of fair price of their products and brands.

Originality/value

This study extends price perception research by incorporating two theories (equity theory and Veblen’s theory of the leisure class) that help further elaborate the relationship between perceived price and willingness to purchase.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 31 no. 5
Type: Research Article
ISSN: 1355-5855

Keywords

Content available
Article

Vincent M. Thielemann, Michael C. Ottenbacher and Robert James Harrington

The purpose of this paper is to identify the antecedents of perceived customer value, such as the perceived quality and perceived sacrifices, and the effects on customer…

Abstract

Purpose

The purpose of this paper is to identify the antecedents of perceived customer value, such as the perceived quality and perceived sacrifices, and the effects on customer satisfaction and customer loyalty (CL) in the restaurant industry.

Design/methodology/approach

Based on an extensive literature review, a research model and questionnaire were designed. To assess the hypothesised relationships, data were collected in a field survey. Partial least squares regression (a variance-based regression analysis of SEM) was selected to analyse the relationships within the research model.

Findings

The findings of this study indicate that the perceived monetary sacrifice (PMS) and perceived service quality were found to be antecedents of perceived value (PV), whereas PMS was the major precursor of PV. Further, PV was found to have a substantial influence on customer satisfaction and CL.

Originality/value

The study provides a better understanding of the price–value–satisfaction–loyalty relationships in the restaurant context in a more holistic sense and recommendations to move this research stream forward.

Details

International Hospitality Review, vol. 32 no. 1
Type: Research Article
ISSN: 2516-8142

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Article

Lien‐Ti Bei and Yu‐Ching Chiao

The purpose of this study is to investigate how customers’ perceptions of service quality, product quality, and price fairness influence their loyalty to a particular…

Abstract

The purpose of this study is to investigate how customers’ perceptions of service quality, product quality, and price fairness influence their loyalty to a particular service provider. Based on the results of a pilot study, we have elected to study banks, auto repair and maintenance shops, and (gasoline) filling stations, each of which are characterized by differing degrees of intangible service provision. Our results show that customer satisfaction either fully or partially mediates the relationship between consumers’ perceptions and their loyalty. The direct or indirect effects on customer loyalty of the perception of product and service quality, as well as of perceived price fairness, are related to the differing levels of intangible service associated with each of the three different service industries.

Details

International Journal of Commerce and Management, vol. 16 no. 3/4
Type: Research Article
ISSN: 1056-9219

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Article

Justin Beneke and Natalia Zimmerman

The purpose of this study is to explore the effect of store image and perceived price on the consumer’s perception of private label brands (PLBs) that have grown in…

Abstract

Purpose

The purpose of this study is to explore the effect of store image and perceived price on the consumer’s perception of private label brands (PLBs) that have grown in stature in recent decades and are increasingly viewed as a strategic asset of retailers. In particular, the tenets of perceived quality, loyalty and awareness/associations, are argued to underpin the construct of brand prestige, which is used as a vehicle to assess consumers’ affinity toward the brand.

Design/methodology/approach

A consumer survey was conducted with a specific focus on purchasers of private label branded breakfast cereal in Cape Town, South Africa. The data from 205 respondents were scrutinized through partial least squares path modeling, which empirically tested the eight hypotheses embedded within the conceptual model.

Findings

The results suggest that perceived price is a powerful influencer in this process; however, the role of store image was seen to be less obvious. At a granular level, a relationship between store image and perceived quality was found to exist, but not so for loyalty and awareness/associations. In this respect, store image was seen as subordinate to the perceived price of the merchandise, bringing into question the assumed stature of store image as a key decision influencer in an emerging market context.

Research limitations/implications

This study was confined to a single product category, within a particular retail segment, as the study focused on PLB breakfast cereal products sold within mainstream South African supermarket stores. This was desirable so as not to infuse varying merchandise category profiles into the model. Furthermore, as data were collected exclusively in the city of Cape Town, the results cannot necessarily be extrapolated to South Africa as a nation. Finally, it should be noted that the study was conducted in an emerging market setting. Developed markets, where consumers are considerably more au fait with PLBs and have increased purchasing power, may therefore produce a different set of results. Thus, our findings are not necessarily generalizable to all branches of the retail sector, nor are they necessarily applicable throughout, and across, different countries. It is hoped that subsequent studies will probe these areas and provide comparative viewpoints.

Practical implications

This study upholds the view that price is a key driver in building PLBs, but interrogates the popular belief that store image automatically adds value in fostering goodwill toward the brand.

Originality/value

This study is one of the first to investigate the notion of private label prestige (grounded in that of brand equity theory) in an emerging market context. In doing so, the study postulates that the “halo effect” of store image on the comprehensive evaluation of the brand might not be as prominent as maintained in existing literature. The study, therefore, questions the role of store image and perceived price of the merchandise, finding that – in actual fact – these do not fare equally in consumers’ cognitive assessment of the private label merchandise.

Details

Journal of Consumer Marketing, vol. 31 no. 4
Type: Research Article
ISSN: 0736-3761

Keywords

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