The authors integrate previous research that has investigated experimentally the influence of price, brand name, and/or store name on buyers' evaluations of prod¬uct quality. The meta-analysis suggests that, for consumer products, the relation¬ships between price and perceived quality and between brand name and perceived quality are positive and statistically significant. However, the positive effect of store name on perceived quality is small and not statistically significant. Further, the type of experimental design and the strength of the price manipulation are shown to significantly influence the observed effect of price on perceived quality.
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"We propose that the mechanism is product efficacy beliefs—that is, beliefs that the promoted product effectively delivers an activity-related benefit such as being energizing or relaxing. Product features that are not inherent to the product, such as price and brand labels, can influence product experience beliefs and subjective experiences (Huber & McCann, 1982;McClure et al., 2004;Rao & Monroe, 1989), as well as perceived product efficacy (Shiv, Carmon, & Ariely, 2005). For instance, after drinking the same beverage that was ostensibly purchased at a regular (vs. "
[Show abstract][Hide abstract] ABSTRACT: Orienting a logo upward or downward may seem like an arbitrary graphic-design decision, but we propose that it can have important implications for consumer judgments. In particular, we find across four experimental studies and a content analysis that diagonal direction can convey different levels of activity with upward—or ascending—diagonals conveying greater activity and effort than downward—or descending—diagonals. Consequently, when the context highlights the benefits of activity (vs. passivity), upward (vs. downward) diagonals led to more favorable product judgments, greater product efficacy beliefs, and greater post-consumption satisfaction. Furthermore, we provide process evidence that perceived product efficacy beliefs mediate these effects, and that the effect is strongest when the object being visually oriented is text rather than images. These findings are particularly important in light of our content analysis findings that diagonal orientation is a relatively underutilized design feature. Collectively, our findings suggest that firms should use upward diagonals when the product context highlights a favorable view of activity. Otherwise, the firm should use downward diagonals, especially when the product context encourages consumers to view passivity favorably.
Full-text · Article · Jan 2016 · Journal of Consumer Psychology
"Consequently, unfamiliar brands inspire more instances of negative bias. Rao and Monroe (1989) also suggest that as brand familiarity increases, consumers reduce their reliance on extrinsic cues and increase their reliance on intrinsic cues when evaluating brands. Thus, with respect to consumers' assessments of blame, the influence of the COO image becomes more powerful in the case of an unfamiliar brand. "
[Show abstract][Hide abstract] ABSTRACT: In recent years, there have been several high-profile recalls of hybrid products (those where organizations in multiple countries take part in the design, component sourcing, manufacturing, and marketing of a product). If consumers perceive a global firm to be responsible for the recall, then it will reduce their brand equity. Therefore, global firms may respond in ethically questionable ways to justify themselves to important stakeholders and avoid blame. Understanding how stakeholders attribute blame for crises involving hybrid products is important to shed light on the unethical manner in which global firms might avoid blame in such situations. The research reported here shows that in a hybrid product crisis, consumers show a bias in favor of the brand company and against the manufacturing company. This bias is more pronounced when the country of manufacture has an unfavorable image or when consumers lack familiarity with the recalled brand. Ambiguous recall announcements by companies that fail to provide a specific and clear reason for the product defect prompt consumers to assume that a manufacturing flaw caused the product defect. As a result, consumers reduce their attribution of blame for the brand company, and thus its brand equity is maintained.
Full-text · Article · Sep 2015 · Journal of Business Ethics
"Consumers often lack the time, motivation, or knowledge to judge a product's quality. In these instances, consumers rely on available cues (e.g., heuristics) such as the product's country of origin (Chao, 1998), brand name (Teas & Agarwal, 2000), and price (Rao & Monroe, 1989) to simplify their quality judgment task (Simonson et al., 1994). Consumers are able to distinguish between high-and low-diagnostic cues, and according to previous research, price is a more diagnostic cue than other extrinsic cues in determining product quality (Herr, Kardes, & Kim, 1991; Lichtenstein, Ridgway, & Netemeyer, 1993). "
[Show abstract][Hide abstract] ABSTRACT: This study delineates the conditions under which a late entrant is able to outperform a pioneer brand by examining the value relevance of alignable and non-alignable attributes. The first experiment shows that the late entrant can surpass the pioneer by adopting either a distinctive (new, non-alignable attribute) or enhancing (improved, alignable attribute) strategy depending on the value relevance of the new attributes. The second experiment provides evidence that pricing cues become instrumental when the value relevance of the late entrant with a distinctive strategy is low. In this context, the findings show that increasing the price of the product counter-intuitively enhances the preferences for the late entrant.
Full-text · Article · Aug 2015 · Journal of Business Research