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The purpose of this paper is to provide an empirical investigation of the idea that imperfectly informed consumers use simple signals to identify the characteristics of wine, for example, the geographical denomination. The reputation of a denomination will thus be an important guide for consumers when assessing individual wines.

The price–quality relationship is studied in a fairly homogenous geographical area where a large number of wine types is present. This is done by using a simple ordinary least squares (OLS) analysis on a database of more than 2,000 different red wines produced in a period of just four years in only one Italian region.

The results show that some denominations have a lower average quality score and that price differentials between denominations are linked to differences in average quality, although consumers tend to exaggerate the quality gap between prestigious denominations and others.

A producer in a prestigious denomination benefits from a substantial mark-up relative to an equally good producer from another denomination. Furthermore, denomination neutral wines have a stronger price–quality relationship than denomination specific wines.

Consumers should not be misled by what is on the bottle, but should rather consult wine guides to become better informed before purchasing.

The fact that quality and sensory characteristics often play a minor role in determining the price of a commodity is not immediately compatible with the postulate that consumers are well informed.

Unlike previous work, this paper investigates a limited area (Tuscany) and only red wines, thus making it possible implicitly to control for many other factors which might otherwise confound the price–quality relationship.

The study of quality economics for manufacturing has focussed mainly on investments and costs, rather than attempting to quantify the benefits of improved quality in the market. This article presents an approach based on both costs and benefits. Systems dynamics‐based simulation has been employed with an optimisation technique, to identify quality spending levels which result in maximum overall profit. The simulation models are based on a Thai automotive manufacturer, which had employed Kaizen for many years, and hence this quality improvement approach was simulated. Two market conditions were modelled: fixed and variable‐price according to the market response to changes in quality level. Optimum profits were found at higher levels of quality spending than actual company spending. The paper examines the details of the optimum condition for the variable‐price market condition. Conclusions are drawn concerning quality improvement strategies and the potential effects of different market pricing conditions on optimum quality spending.

The market for counterfeit goods worldwide has continued to grow significantly over the years, attracting the curiosity of researchers in the marketing field. This study aimed to analyse the influence of price-quality inference and attitudes towards economic rewards of purchasing counterfeit products on the intentions to purchase non-deceptive counterfeit products.

The research adopted a quantitative methodology and utilised the cross-sectional survey method to collect data from a sample of 381 respondents comprising university students. The data was then analysed using the computer software Smart PLS 4.

The results established that the respondents’ price-quality inference of counterfeit products was positively associated with the attitudes towards economic rewards of purchasing counterfeit products and intention to purchase counterfeit products. Furthermore, the study revealed that attitudes towards economic rewards of purchasing counterfeit products partially mediated the influence of price-quality inference on customer intention to acquire non-deceptive counterfeit goods. A multigroup analysis of the proposed relationship did not find any statistically significant differences in the pattern of results concerning the gender groups.

The significance of the study findings is hampered by the singular focus on university students as a reference point for young people’s perceptions of counterfeit goods in South Africa. The study, however, presents verifiable evidence that marketers and brand managers of genuine products may utilise to develop intervention measures to sway young African consumers away from counterfeits and towards genuine brands.

This is one of the few studies in the literature that addresses young adults’ deliberate purchasing of non-deceptive counterfeits in South Africa, an important consumer market in Africa.

The purpose of the paper is to present an integrated methodology for identifying effective economic incentives to enhance quality performance by mango producers in Costa Rica.

The study analyses the relationship between intrinsic product quality attributes and socio‐economic characteristics of mango producers in the Central Pacific zone of Costa Rica. Data are derived from a representative sample of 35 mango producers. A mango quality index for local and export market outlet is constructed and quality performance is subsequently related to farm‐household characteristics and contractual delivery parameters. Categorical regression methods are used to identify the relationships between farm‐household characteristics, production system features, marketing relationships and quality attributes weighted by consumers' preferences.

Key attributes of the quality index – related to dimensions of ripeness, appearance and variability – appear to be strongly related to farm‐household characteristics like the producers' age and experience, input use intensity and family labour availability. Preferences for certain contractual regimes and marketing arrangements give rise to differentiation in quality performance. Long‐term delivery relationships and non‐price attributes appear as key factors for quality improvement in mango.

Although the study is based on a modest sample, the significant relationships between the constructs in the model are found to be sufficiently robust.

The research approach enables the estimation of a model where quality performance is related to technical and institutional aspects related to the organisation of mango delivery chain.

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).

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.

Identifies the relationship between price and the consumer's evaluation of product quality with regard to developing a pricing strategy. Assesses the effects of price changes, and investigates the influence of advertising on perceived product quality.

This paper aims to assess service quality in professional football and to examine the effects of service quality and ticket pricing on satisfaction and behavioural intention. Data were collected among football fans and the results of a confirmatory factor analysis (CFA) supported the psychometric properties of the service quality model. A structural equation model (SEM) revealed that the service quality construct impacts both satisfaction and behavioural intention. Also, behavioural intention is influenced by ticket pricing and satisfaction. Managerial implications of these results are discussed and guidelines for future research are suggested.

Various models and scales exist in the literature to measure retail bank service quality without any attempt at integrating them and the moderators have often been under explored. The purpose of this paper is to integrate the SERVQUAL and BSQ models and moderated the resulting scale with price in order to examine service quality and customer satisfaction with retail bank services in Ghana.

The study is quantitative and the survey methodology was used to collect data from 560 retail bank customers. The result was analyzed through structural equation modeling.

The study provides an expanded model for measuring retail bank service quality as seven of the eight latent constructs emerged as service quality dimensions when moderated with price. It is significant to also note that five of the constructs – tangibles, reliability, assurance, empathy and price – from the direct relationship emerged as the dimensions of retail bank service quality that positively and significantly predicted customer satisfaction.

The study provides insight into customer behavior with the quality of retail bank services in Ghana. The resulting broader dimensions provide an integrated and expanded model as well as pointers to bank managers on service quality and customer satisfaction cues to enable them attract, serve and retain customers.

The study is the first of its kind to integrate two of the popular models to measure retail bank service quality and to use price as a moderator of this relationship. The resulting scale, which comprised of variables from the two models, provides support for the approach used in the current study.

Discusses a conceptual model of consumers′ product evaluation that should help marketers′ understanding of price setting. Provides a conceptual model that incorporates acceptable value range and that examines the influence of price and store name information on quality, monetary sacrifice, value, and willingness to buy. Argues that unlike brand name image, which takes considerable time, money and managerial talent to develop, price and retail outlet are two distinct marketing tools for making quick position movements in a competitive market. Concludes that understanding the effects of price and store name information should lead to more effective and efficient behaviour in the marketplace by both buyers and sellers.