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Article
Publication date: 13 November 2018

Peter J. Boyle, Hyoshin Kim and E. Scott Lathrop

This paper aims to investigate price and objective-quality in durable product categories containing national and private-label (PL) brands.

2143

Abstract

Purpose

This paper aims to investigate price and objective-quality in durable product categories containing national and private-label (PL) brands.

Design/methodology/approach

Using data from consumer reports objective-test results of 14,476 durable products available in the US the authors identified product categories containing both national and PL brands; constructed relative price- and quality-indices for each category; calculated price and quality differentials for each category then modeled the relationship between them; estimated the price premium associated with national brands (NBs); and computed price–quality (PQ) correlations for each category. The authors also analyzed the same relationships using subjective brand-perception data collected from 240 consumers.

Findings

Overall the price of NBs in durable products was substantially higher than the price of PL brands despite there being little to no difference in quality levels overall, with the proportion of categories having higher PL quality nearly equaling that of categories having superior NB quality. Correlation between price and quality was moderate. Accuracy of consumer perceptions varied depending on the importance of brand in the purchase decisions for particular product categories.

Originality/value

This paper uses a large objective dataset spanning a period of more than eight years to assess price and quality for durable goods in categories offering PL brands. It addresses an under-studied area, that of PL brands for higher-priced, longer-lasting products. The findings contribute to an existing understanding of PLs, especially in the domain of durable-goods, as well as to the body of research in the area of PQ relationships. It also adds to our understanding of consumers’ perceptions of brand as a factor in durable product decisions and how the market aligns with those perceptions.

Details

Journal of Product & Brand Management, vol. 27 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 May 1994

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 Tansik…

7277

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

Keywords

Article
Publication date: 19 September 2018

Mariëtte Louise Zietsman, Pierre Mostert and Göran Svensson

The purpose of this paper is to test perceived price and service quality as mediators between price fairness and perceived value in service encounters between micro-enterprises…

2928

Abstract

Purpose

The purpose of this paper is to test perceived price and service quality as mediators between price fairness and perceived value in service encounters between micro-enterprises and their banks.

Design/methodology/approach

The study is based on a self-administered and internet-based questionnaire conducted in the banking industry. The sample consists of 381 micro-enterprises in South Africa that employ one or two staff members.

Findings

The findings of this paper provide evidence for both theory and practice that perceived price and service quality influence the relationship between business banking customers’ perception of price fairness and the value of the service offered.

Research limitations/implications

The measurement and structural properties reported are satisfactory. This paper confirms the hypothesized relationships in the tested research model, and rejects a tested rival model. Limitations are reported, and suggestions for further research are provided.

Practical implications

This paper offers banking executives guidance in managing the pricing structure of their services, and highlights the value of offering greater transparency with regards to service charges and interest rates.

Originality/value

This paper contributes to insights into the mediating effects of perceived price and service quality between price fairness and perceived value in business relationships between micro-enterprises and their banks.

Details

International Journal of Bank Marketing, vol. 37 no. 1
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 26 June 2023

Emerson Wagner Mainardes, Silvestre de Jesus Cunha Paixão Júnior and Ricardo Gouveia Rodrigues

This study aims to verify the antecedents influencing mobile gamers’ intentions to purchase mobile phones. To this end, the constructs price–quality relationship, price…

Abstract

Purpose

This study aims to verify the antecedents influencing mobile gamers’ intentions to purchase mobile phones. To this end, the constructs price–quality relationship, price sensitivity, perceived quality, identification with the group of gamers and referrals from other gamers were identified in the literature.

Design/methodology/approach

Data were collected through an online questionnaire with 335 consumers. The model was tested using partial least squares.

Findings

It was verified that the price–quality relationship directly influences mobile gamers' intentions to purchase mobile phones. Also, it was observed that price sensitivity of mobile gamers directly influences the price–quality relationship and indirectly influences the intention to purchase mobile phones to play games. It was further verified that this price sensitivity is directly influenced by the perceived quality of mobile gaming devices. Finally, it was observed that referrals from other gamers directly influences the perceived quality and onès identification with the group of gamers.

Research limitations/implications

This study concluded that developing strategies focused on prices of mobile phones gamers use to play games tends to influence mobile gamers' purchase intentions. This paper extends the study of mobile device purchase behavior, uniting constructs studied separately and proposing connections not yet tested, assisting in the theoretical understanding of the factors that contribute to the intention to purchase mobile devices.

Originality/value

This study is theoretically justified for four reasons: it focused on a specific group of consumers, mobile gamers, which is a constantly growing audience; it brought an innovative model, testing the influence of the perceived quality of mobile gaming devices on the price sensitivity of mobile gamers; there are spaces for new research on mobile device purchase intention; and it may assist in the theoretical understanding of the factors contributing to mobile device purchase intention.

Details

Young Consumers, vol. 24 no. 5
Type: Research Article
ISSN: 1747-3616

Keywords

Article
Publication date: 20 April 2015

Jorge Vera

The purpose of this paper is to assess the relationship between perceived brand quality (PBQ), customer perceived value (CPV) and disposition to pay a higher price (DHP) for a…

5491

Abstract

Purpose

The purpose of this paper is to assess the relationship between perceived brand quality (PBQ), customer perceived value (CPV) and disposition to pay a higher price (DHP) for a product. Such an assessment also seeks to determine if consumer involvement and brand performance measurements have moderating effects on this relationship.

Design/methodology/approach

Data from a sample of n = 1,029 purchasers of six different product categories were analysed. The respondents evaluated a product with items based on involvement profile scales. The chosen brands were evaluated using perceived quality, value and brand performance items. Respondents were also asked if a higher price for the chosen product/brand would be paid. Structural modelling was implemented. To corroborate moderating effects, a nested comparison invariance test for structural weights was used.

Findings

PBQ has a direct effect on CPV but not on DHP. CPV has a mild effect on DHP. Involvement and brand performance moderating effects were confirmed.

Originality/value

Brand quality is assumed as a strategy to achieve a higher price disposition through customer value in contrast with previous empirical literature that puts the price as a sign of quality. DHP is argued as a measurement to indicate “superior customer perceived value”. This variable would be different from and more difficult to achieve than CPV.

Article
Publication date: 9 September 2014

Rainer Olbrich and Hans Christian Jansen

This article aims to close some research gaps by differentiating between brand types and price tiers. Many consumers perceive high prices as signals of high quality, yet…

8186

Abstract

Purpose

This article aims to close some research gaps by differentiating between brand types and price tiers. Many consumers perceive high prices as signals of high quality, yet researchers tend to find only low average correlations between price and objective quality. Previous studies do not account for market shares and paid prices though.

Design/methodology/approach

A German consumer panel with more than 30,000 households reveals market shares and paid prices. Combining these data with product test ratings, the authors evaluate price-quality relationships with Spearman’s rank correlation coefficients and distinguish food from non-food products, national brands and private labels and three price tiers.

Findings

High price-quality correlations for national brands and non-food private labels indicate that a higher price signals greater product quality. For food private labels, negative correlation coefficients inhibit the use of price as a quality indicator. The price-quality relationship for food private labels implies strong competition among brand owners, based on the price and quality of their products.

Originality/value

This article investigates price-quality correlations by accounting for paid prices and product market shares; it also reveals differences across food and non-food products, national brands and private labels and different price tiers against the background of competition strategies. By addressing when consumers use price as a quality indicator, it outlines important managerial implications for manufacturers, retailers and consumers.

Details

Journal of Product & Brand Management, vol. 23 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 5 July 2011

Amos Gyau, Achim Spiller and Christian Wocken

The aim of this paper is to determine the relative importance of actual price and behavioural factors for the quality of the business relationship between German dairies and their…

1824

Abstract

Purpose

The aim of this paper is to determine the relative importance of actual price and behavioural factors for the quality of the business relationship between German dairies and their milk suppliers.

Design/methodology/approach

The paper reports the results of field study involving 209 farmers in Lower Saxony and the northern section of North Rhine‐Westphalia regions in northwest Germany. These regions are the most important milk production centres in Germany.

Findings

The results indicate that, whereas behavioural factors, specifically relationship management practices and price satisfaction, have a positive influence on the quality of the business relationship between the farmers and the dairies, the actual price levels have no influence.

Practical implications

Actual prices paid to the farmers is not the most important factor which influences the quality of their relationship with the dairies but rather behavioural norms such as milk price satisfaction and relational norms. Dairies are advised to enhance price perception through price negotiations and transparency in order to facilitate quality relationship instead of through higher price payment alone.

Originality/value

This study is the first to integrate and compare the actual prices and behavioural variables to determine their relative importance and influence on relationship quality.

Details

British Food Journal, vol. 113 no. 7
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 1 May 1983

In the last four years, since Volume I of this Bibliography first appeared, there has been an explosion of literature in all the main functional areas of business. This wealth of…

16287

Abstract

In the last four years, since Volume I of this Bibliography first appeared, there has been an explosion of literature in all the main functional areas of business. This wealth of material poses problems for the researcher in management studies — and, of course, for the librarian: uncovering what has been written in any one area is not an easy task. This volume aims to help the librarian and the researcher overcome some of the immediate problems of identification of material. It is an annotated bibliography of management, drawing on the wide variety of literature produced by MCB University Press. Over the last four years, MCB University Press has produced an extensive range of books and serial publications covering most of the established and many of the developing areas of management. This volume, in conjunction with Volume I, provides a guide to all the material published so far.

Details

Management Decision, vol. 21 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 22 February 2021

Koki Arai

The purpose of this paper is to try to understand the relationship between price and quality in public procurement by using data on the quality of civil engineering works and…

Abstract

Purpose

The purpose of this paper is to try to understand the relationship between price and quality in public procurement by using data on the quality of civil engineering works and prices in tenders. By doing so, it tries to conduct a comprehensive examination of the quality of construction works, which has been difficult to recognize and evaluate.

Design/methodology/approach

The methodology of this analysis is to collect data on the quality of construction works from the rankings of construction performance evaluations revealed by public procurement authorities. In addition, the prices of bids of the providers in public procurement are also collected from the available data and analyzed. The relationship between the two was statistically analyzed in an objective and verifiable way.

Findings

What the study found was that the price of the work measured by the bid rate had a positive and significant relationship with the quality of the work measured by the construction performance rating. Furthermore, the panel data were analyzed using panel data for 51 firms that all appeared in the construction performance evaluation for 12 years and participated in at least three bids in each year, and the first-order term of the bid rate was negative and the second-order term was positive and was 10% significant, which is a U-shaped relationship.

Research limitations/implications

This study is one of the investigations focused on public procurement construction work. One of the limitations of this study is that it is a study of one industry in the Asian region. However, this study focuses on the incentives of business operators. As such, the analysis is applicable to all situations faced by those running businesses.

Practical implications

The managerial implications of this study include the following: although, improving the quality of construction results is costly, competitive firms are also steadily improving their quality as it is a factor of competition. However, there will come a point where their efforts come to a halt at a certain level. It is necessary to operate the business with this situation in mind. In addition to the company's efforts, it is necessary to lobby the government.

Social implications

As a policy implication for this analysis, it was possible to evaluate that steady improvement in construction results was confirmed, but the correlation between the relaxation of the competition and the increase in the bid rate was correlated with the decrease in the total amount of public works. This highlights the problem of having to think about measures for the efficient use of the. In addition to this, the fact that the competition situation has been eased can be considered as a problem that it will adversely affect the innovation stimulation of operators, and that it will become necessary to pay more attention to competition limiting acts.

Originality/value

The uniqueness of this paper is firstly that unique data representing the quality of public procurement, which had been difficult to analyze, were collected, organized and used in the study. In addition, not only did we find a positive relationship between quality and price but we also found a U-shaped relationship between them using panel data.

Details

International Journal of Quality & Reliability Management, vol. 38 no. 10
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 1 March 1985

Johny K Johansson and Gary Erickson

This paper presents some rather complicated empirical work employing econometric modelling to demonstrate the validity of a quite simple proposition: the use of a product's price…

Abstract

This paper presents some rather complicated empirical work employing econometric modelling to demonstrate the validity of a quite simple proposition: the use of a product's price as an indicator of quality is only justified when the market is free of trade barriers and other imperfections. It demonstrates that individuals are well aware of this fact, making use of price as a quality indicator only where trade barriers have not distorted prices. Thus, it is not possible to make very strong generalisations about the existence of a universal price‐quality relationship. The managerial implications of the findings are briefly discussed.

Details

International Marketing Review, vol. 2 no. 3
Type: Research Article
ISSN: 0265-1335

1 – 10 of over 73000