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As retailers in the discount sector proliferate into US retail markets their presence poses competitive challenges for all types of formats that vie for the same target consumer. Practitioners and academics traditionally characterize the discount consumer as one who seeks low‐cost goods and broad assortments. Yet, as US discounters have begun to differentiate their retail offerings, consumers appear to be responding to these initiatives, suggesting that they may seek value beyond low price in this context. The purpose of this paper is to identify the price cues used by consumers in the discount environment, segment these consumers based on their price cue usage, and describe the price segments in terms of store choice and demographics.

A telephone survey was used to gather a nation‐wide sample of US discount format shoppers (n=354). Confirmatory factor analysis is used to evaluate the price cue measures and K‐means cluster analysis is used to identify unique price cue segments. χ², analysis of variance and descriptive statistics are used to describe the price cue segments.

Four shopper segments are identified with distinct operations of the price cue, suggesting that discount shoppers seek more than low price in the discount environment. Differences in segments in terms of store choice, income and age emerge from the data.

The study provides understanding of the manner in which consumers perceive and act upon price, beyond low‐price and value, in the discount sector. The results suggest that popular wisdom regarding price and the US discount shopper is oversimplified, which may portend even greater opportunity for discounters and threat to their intra‐type competitors.

The purpose of this work is to elucidate how price, brand cues and customer value are related, and to explore the influence of price and brand cues through service quality and perceived risk on customer value, focusing specifically on Taiwan.

Samples were collected using a questionnaire which assessed the quality of our measurement efforts by investigating reliability and validity. We then compared our hypothesized model with a rival model based on the overall fit, parsimony, and percentage of model parameters that were statistically significant.

Service quality is found to be positively affected by brand cues, whereas perceived risks are negatively influenced by price cues. Exactly how customer value is affected by the service quality and perceived risk is considered. Brand cues notably indirectly affect customer value through service quality, whereas price cues notably indirectly affect customer value through perceived risk.

For future research, how other external cues may influence perception of quality and risk with extrinsic information should be discussed.

In practice, bank managers can hone the relevant cues and optimize investments to raise service quality or lower consumers' perceived risk.

This study provides a new perspective of the “structural” relationships among price and brand cues, service quality and perceived risk.

Prior research has demonstrated that reference prices can affect consumer responses, but the reference prices examined have been presented along with semantic cues [e.g. manufacturer’s suggested retail price (MSRP) and Compare At]. This study is unique in investigating the effects of reference prices that do not include a semantic cue (i.e. “cue-less”) on consumers’ responses. It also studies consumers’ beliefs about factory outlet stores, a seldom-studied store type in which cue-less reference prices are used.

One qualitative study and one experiment were carried out in this research.

The qualitative study revealed that a price tag including cue-less reference prices was unlikely to be viewed as a seller mistake or with suspicion, but nonetheless did confuse some respondents. The experiment demonstrated that while consumers find cue-less reference prices to be somewhat less believable that high MSRPs, these beliefs do not appear to come into play when consumers judge attractiveness (e.g. perceived value). Additionally, the results suggest that consumers believe that a product available for sale in a factory outlet store is likely to have been previously available at a different type of store.

This research advances the theory of the effects of reference prices on consumers’ responses by examining the common practice of not labeling reference prices with semantic cues. It also extends the literature regarding consumer beliefs about factory outlet stores.

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.

Proceeding from studies that, at a general level, identify the extrinsic price cue as a mediator between a wine's perceived and intrinsic merit, the authors aim to report on a tasting‐room experiment conducted to determine the impact of the price cue on sighted ratings across categories of gender, age, and relative experience.

A total of 73 subjects assessed seven merlot wines, first blind and then sighted. During the sighted tasting, the only available cue‐information was the price per bottle. The seven price points ranged from the cheap (R25) to the expensive (R160).

Across all segmentations, the authors' analysis of sighted scores revealed the marked extent to which price effects demean the intrinsic merit of a wine. Older, more experienced and female strata appear to respond the most to price information; their respective model price effects are shown to increase by 57, 33 and 24 percent relative to their base comparators.

These findings challenge the dogma that unbiased sighted assessments are best conducted by self‐proclaimed wine experts who are older and more experienced; and suggest alternately, and perhaps heretically, that such assessments would be better conducted by younger, less experienced, non‐experts.

Draws from various theoretical bases and empirical research to offer managerial recommendations concerning the communication of sale price information in advertisements. Addresses the manner in which the manipulation of price cues, semantic cues and product cues in an advertisement can enhanceperceptions of utility via increases in the internal reference price, the perceived value implied by the offering price, and perceptions of product quality.

The purpose of this paper is to examine the extent of use of the price‐quality cue in financial services, and to uncover some of its drivers. The drives studied are: advertising exposure, product complexity, and consumer price knowledge. The use of price as an indicator of quality has been a well‐documented phenomenon in consumer goods markets. However, the existence of this relationship has not been tested in services, and in particular in financial services markets.

A consumer survey of over 200 individuals contacted through intercept interviews was conducted. The use of the price‐quality cue and its drivers were measured using multi‐item scales, for six financial services categories: checking accounts, financial advisory services, automobile insurance, home insurance, life insurance, and tax accounting.

Significant variations in the use of price as an indicator of quality across financial services categories are identified. Furthermore, it is found that both consumer price knowledge and advertising exposure increase the use of the price‐quality cue, while product complexity was found to have no significant impact on price‐quality cue utilization for financial services.

Future research could expand the array of variables which drive consumers' use of the price‐quality cue. In addition, a wider range of financial services categories could be studied.

Knowing the extent by which consumers depend on the price‐quality cue in their decisions is critical to optimal positioning of a financial brand. This paper provides specific managerial recommendations on how to approach the pricing and marketing of each of the six financial services categories studied. In addition public policymakers may find the findings of interest due to quality perception biases that may result from financial services providers' pricing tactics

While previous research studies in price‐quality cue utilization have primarily focused on manufactured goods, this paper is the only study that has examined the dynamics of price‐quality cue utilization by consumers in financial services. This is an important inquiry due to the large volume of consumer expenditures in financial services categories, and the significant impact that these categories have on the financial stability and well‐being of the public.

Through the use of both sight and blind‐based quality metrics, the purpose of this paper is to ascertain the extent to which the sighted appreciation of a wine's intrinsic merit is confounded by extrinsic cues such as price and region of origin.

Using a database of sighted and blind tastings of three red South African wines (Cabernet, Merlot and Shiraz) over the period 1993‐2001, a series of multiple linear regression models is developed to explain sighted quality ratings.

The meta‐model, with an adjusted R² of 31 per cent, indicates three statistically significant explicatory factors, namely price, region, and intrinsic quality. The price cue alone explains 84 per cent of sighted quality assessments; the combined effect of both the region and price cue explains 95 per cent. This finding suggests that when quality is measured from a sighted perspective, area becomes a significant explicator, along with price. It is only once the cues of region and price have been factored into the meta‐model that intrinsic merit becomes relevant, and here, only to an extremely limited extent (5 per cent). The lack of correspondence between sighted and blind tasting scores, suggests that for sighted judgements – extrinsic cues appear to be masking the wine's intrinsic merit.

For the first time, blind and sighted tasting results are collated into one database and statistically interrogated. The findings show how we are deleteriously distracted by the apparent efficacy of extrinsic cues.

This paper aims to examine differences in generational perceptions of market cues related to price, quality and shopping enjoyment in the apparel retailing context.

A cross‐section of US apparel consumers (n=342) constitutes the sample for the study. Analysis of variance and multiple comparisons are used to investigate differences in market cue perception among US generational cohorts.

Results indicate significant differences in the cohorts in terms of their perception of quality related to country‐of‐origin, price consciousness, prestige sensitivity and shopping enjoyment.

The results should not be extrapolated to markets outside of the USA. Further, the sample characteristics should be considered for interpretation and application of the results for US markets.

The findings related to the market cues provide both operational and strategic direction for apparel marketers and retailers in terms of country‐of‐origin quality, pricing policy and managerial efforts to control the shopping experience.

The research expands upon the general research into US generational cohorts and consumer behavior by incorporating the entire social cycle within a single study: millennials, the thirteenth generation, the baby boomers and the silent generation.