Abstract
According to the price-expectancy model of consumer choice, consumers evaluate products by comparing the actual price with a reference or expected price determined from (a) product's quality and (b) the price-quality correlation of the product category. Choices between hypothetical products of beer are used to test the model against a model without a reference price. Consistent with the price-expectancy model, product preferences varied with the subjective correlation between price and quality: the relative preference for higher priced/higher quality products over lower priced/lower quality products increased as the subjective correlation increased. For some pairs, the correlation between price and quality created a preference reversal across contexts: the higher priced/higher quality product was chosen over the lower priced/lower quality product in the higher correlational context, but the lower priced/lower quality product was chosen over the higher priced/higher quality product in the lower correlational context. An additional study provided evidence that the price - quality correlation affects reference price, rather than reference quality, formation.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 258-273 |
| Number of pages | 16 |
| Journal | Organizational Behavior and Human Decision Processes |
| Volume | 75 |
| Issue number | 3 |
| DOIs | |
| State | Published - Sep 1998 |
| Externally published | Yes |
Fingerprint
ASJC Scopus subject areas
- Organizational Behavior and Human Resource Management
- Strategy and Management
- Psychology(all)
- Applied Psychology
Cite this
The Effect of Correlation between Price and Quality on Consumer Choice. / Ordonez, Lisa D.
In: Organizational Behavior and Human Decision Processes, Vol. 75, No. 3, 09.1998, p. 258-273.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - The Effect of Correlation between Price and Quality on Consumer Choice
AU - Ordonez, Lisa D
PY - 1998/9
Y1 - 1998/9
N2 - According to the price-expectancy model of consumer choice, consumers evaluate products by comparing the actual price with a reference or expected price determined from (a) product's quality and (b) the price-quality correlation of the product category. Choices between hypothetical products of beer are used to test the model against a model without a reference price. Consistent with the price-expectancy model, product preferences varied with the subjective correlation between price and quality: the relative preference for higher priced/higher quality products over lower priced/lower quality products increased as the subjective correlation increased. For some pairs, the correlation between price and quality created a preference reversal across contexts: the higher priced/higher quality product was chosen over the lower priced/lower quality product in the higher correlational context, but the lower priced/lower quality product was chosen over the higher priced/higher quality product in the lower correlational context. An additional study provided evidence that the price - quality correlation affects reference price, rather than reference quality, formation.
AB - According to the price-expectancy model of consumer choice, consumers evaluate products by comparing the actual price with a reference or expected price determined from (a) product's quality and (b) the price-quality correlation of the product category. Choices between hypothetical products of beer are used to test the model against a model without a reference price. Consistent with the price-expectancy model, product preferences varied with the subjective correlation between price and quality: the relative preference for higher priced/higher quality products over lower priced/lower quality products increased as the subjective correlation increased. For some pairs, the correlation between price and quality created a preference reversal across contexts: the higher priced/higher quality product was chosen over the lower priced/lower quality product in the higher correlational context, but the lower priced/lower quality product was chosen over the higher priced/higher quality product in the lower correlational context. An additional study provided evidence that the price - quality correlation affects reference price, rather than reference quality, formation.
UR - http://www.scopus.com/inward/record.url?scp=0011420032&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0011420032&partnerID=8YFLogxK
U2 - 10.1006/obhd.1998.2794
DO - 10.1006/obhd.1998.2794
M3 - Article
AN - SCOPUS:0011420032
VL - 75
SP - 258
EP - 273
JO - Organizational Behavior and Human Decision Processes
JF - Organizational Behavior and Human Decision Processes
SN - 0749-5978
IS - 3
ER -