The Effect of Price, Brand Name, and Store Name on Buyer's Perceptions of Product Quality: An Integrated Review

Journal of Marketing Research (Impact Factor: 2.52). 08/1989; XXVI(August 1989):351-57. DOI: 10.2307/3172907


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. "
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    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.
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    • "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. "
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    • "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). "
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