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Price as an informational cue: effects in product evaluation

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... However, the attributes utilized by individuals to describe quality are dynamic and subject to change based on their interests, concerns, or needs [4]. Several studies [4,21,78] have observed a recent shift wherein extrinsic quality attributes, which pertain to characteristics associated with a product but are not physically inherent to it [79], have gained increasing importance in defining food quality, alongside intrinsic attributes, which are related to the physical composition of the product itself and cannot be altered without changing its nature, such as aroma, taste, and color [79,80]. Of particular significance are the extrinsic quality attributes known as "Search Qualities," which individuals can determine before purchasing a food product through direct examination (e.g., nutritional value or packaging size and features), and "Credence Qualities" [81], which require additional information for evaluation and cannot be directly experienced from the product itself (e.g., environmental impact). ...
... However, the attributes utilized by individuals to describe quality are dynamic and subject to change based on their interests, concerns, or needs [4]. Several studies [4,21,78] have observed a recent shift wherein extrinsic quality attributes, which pertain to characteristics associated with a product but are not physically inherent to it [79], have gained increasing importance in defining food quality, alongside intrinsic attributes, which are related to the physical composition of the product itself and cannot be altered without changing its nature, such as aroma, taste, and color [79,80]. Of particular significance are the extrinsic quality attributes known as "Search Qualities," which individuals can determine before purchasing a food product through direct examination (e.g., nutritional value or packaging size and features), and "Credence Qualities" [81], which require additional information for evaluation and cannot be directly experienced from the product itself (e.g., environmental impact). ...
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Milk consumption has traditionally been recognized as a fundamental element of global dietary patterns due to its perceived nutritional advantages. Nonetheless, a substantial decrease in milk consumption has been identified within diverse populations in recent times. Specifically, consumers’ expectations and representations of milk quality have undergone notable transformations, contributing to the observed reduction in consumption. The objective of this systematic review was to conduct a comprehensive examination and categorization of the conceptual attributes associated with milk quality, considering the representations of citizen-consumers, farmers, and processing experts. This review was conducted following the Preferred Reporting Items for Systematic reviews and Meta-Analyses (PRISMA) guidelines. The titles and abstracts of 409 articles were screened, and 20 full-text articles were assessed for eligibility. The results demonstrate the existence of a dual articulation in the conceptual definition of milk quality. Farmers and processing experts exhibited a relatively similar representation of milk quality, focusing on technical indicators. In contrast, citizen-consumers held more simplistic and subjective concepts that are challenging to quantify. This study emphasized the critical need for establishing a platform for communication and knowledge exchange to foster shared representations and expectations regarding milk quality.
... In several studies like (Oh, 2000), (Hanzaee & Yazd, 2010) and (Noel & Hanna, 1996) the overall association between price and quality is positive but Peterson (1985) argued that the relationship between price and perceived quality is not universal and the direction of relationship may not always be positive. ( (Friedman & Lawrence, 1967), Shapiro 1973, (Peterson, 1970), (Peterson & Jollbert, 1976), (Olson, 1976), (A. Parasuraman, 1985) (P.G. & R, 1985). ...
... Similar results found in (Dodds, 1991) and (Zeithaml, 1988) and predicted that this relation does not hold if more cues are available. The result is consistent with the result of (Oh, 2000), (Hanzaee & Yazd, 2010)and (Noel & Hanna, 1996) .The overall association between price and quality is positive but inconsistent with (Peterson, 1985) argument that the relationship between price and perceived quality is not universal and the direction of relationship may not always be positive which is supposed by (A,1967), Shapiro 1973, ( Peterson, 1970), (Peterson & Jollbert, 1976), (Olson, 1976), (A. Parasuraman, 1985)) (P. ...
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Purpose-The purpose of this study is to analyze perceived value and its effect on perceived quality, price, location and satisfaction of hospitals in Kathmandu valley. Design/Methodology/approach-The research is based on exploratory study on which causal comparative research design has been used. A convenience sampling technique was used in this study. 149 respondents have been taken as sample size through random sampling. Finding- The result conformed that four-dimension location, perceived price, perceived quality and satisfaction are a distinct construct for perceived value.Perceived price,perceived location and satisfaction donot generally impact on perceived value of hospitals in Nepal. Perceived quality has been found as strong impacting predictor of perceived value. Price is the highly sensitive for health service in context of developing countries like Nepal. Price discrimination among the same level of hospitals might be insignificant cause on perceived value. Perceived location doesnot impact on perceived value because Nepalese people are more concern about the trust and relibility of service,reputation of hospitals and recommendation from our relatives and doctors rather than convenience hospital location. In additional, the correlation between price-quality and perceived quality-satisfaction have been found positive. The result revealed that hospitals should increase their service quality through its supportive visionary leadership, proper planning, education and training, availability of resources, effective management of resources, employees and processes, and collaboration and cooperation among employers in Nepal. Research limitation/Implication-The research examine the concept of perceived value, perceived quality, satisfaction, perceived price and perceived location from the perspective of patients. It doesn’t consider the perspective of service providers. This is a limitation as it only explores from the patients view which might be different from provider view. Practical implication-The result indicate that managers should perceived value as mechanisms for competitive advantage that will lead patient loyalty among present customers.Quality should given preference to incrase perceived value of the hospitals. Originality/Value-This study will enable hospital to have sound understanding of their perceived value on the effect of perceived value on the basis of perceived quality, perceived value, perceived price, location and satisfaction in order to build sustainable relationship with their patients and competitive advantage on market. Keywords: Perceived value, perceived location, perceived price, perceived quality satisfaction, Hospitals, patients
... Intrinsic cues (e.g., texture, weight, design) are touted as being potentially more significant in influencing consumers than extrinsic cues such as price or brand in perceived quality perception (Krishna, 2012). Extrinsic cues are characteristics that are related to the product, but are not physically part of it (Olson, 1977) such as price, brand name, place of origin, type of outlet, presentation, influence of store personnel, promotion, packaging, and advertising, are determined by marketing efforts. ...
... Touch allows for the intrinsic cues of a product to be examined. Intrinsic cues are features of a physical product that cannot be altered without also altering the physical product itself (Olson, 1977). Even a low priced pen may be perceived as higher quality when unpackaged because its intrinsic cues are accessible than when presented in packaged form (Pincus & Waters, 1975). ...
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This research provides insight into how touch effects differ by brand familiarity and brand status. Using schema theory and contagion theory, hypotheses were tested in two between subject experiments. A sweater and pillowcase served as product stimuli and consumers were exposed to a known and unknown brand for the brand stimuli. Findings provide support for a brand contagion effect where a luxury branded product is concerned and suggest that this effect is activated through product touch. Interestingly, brand familiarity did not seem to influence the relationship between touch and product evaluation. This paper finds brand status to be a moderator of touch effects on product evaluation while brand familiarity is not. Additionally, a brand contagion effect activated through product touch is shown. The results of this paper provide insight for marketers and retailers regarding marketing strategies for different levels of the product life cycle (where familiarity differs), brand extension strategies (where familiarity and brand status may differ) and, most crucially, design of in-store layout and product displays. It advances knowledge in the field of sensory marketing by integrating and conceptualizing previously unexplored relationships between three key areas of literature, namely product touch, brand familiarity and brand status.
... The point is, however, that Rao and Monroe had to limit their experiment somewhere. Their experiment is already much more complex than previous studies of the relationship between price and perceived quality (Olson 1977). ...
... In the physics context, the development of the special theory of relativity made possible the general theory of relativity, and, in turn, the general field theory. In the Rao and Monroe (1988) study, the inclusion of familiarity as a covariate is testimony to the evolution of our understanding of consumer behavior; familiarity does not appear as a construct in the studies reviewed by Olson (1977). In the salesforce compensation context, recent research by Holmstrom and Milgrom (1990) suggests that some salespeople may be compensated by salary alone-even though their effort cannot be observedbecause output is multidimensional and some of the dimensions cannot be measured (e.g., missionary work). ...
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Abstract Modelling has become a visible tool in many disciplines including marketing and several marketing models have been constructed. These models serve their pedagogical and practical purposes in some cases. However, among the marketing models so often cited is Moorthy‟s Theoretical Modelling in Marketing. This model is important, and hence this review once more, in that it offers a starting point, and in some cases the finishing line, for those who want to tread the pedestrian of modelling in marketing. But this is not the end; it also provides an explanation for those who want to know more about modelling in general by providing answers to some basic questions about the use of models. Our discussion here will certainly bring in many people who have been peeping into marketing modelling from behind the wall. Key words: Marketing, Modelling, Moorthy, Pedagogy, Theoretical
... For instance, colors can influence moods and feelings (positively or negatively), and consequently a consumer's attitude toward certain products (Singh, 2006). Internal characteristics refer to those specific and physical properties (e.g., ingredients, durability, taste) that cannot be changed without altering the nature of the product itself (Olson, 1976). However, consumers' perceptions of internal characteristics may be modulated by external characteristics. ...
... Understanding how consumers assess product quality is important to study as it may influence consumer buying behaviors. Product characteristics can affect how consumers perceive product quality (Olson, 1976). The evaluation of product characteristics is a cognitive process that modulates attention, thus, consumer neuroscience tools can be used to analyse neural processes that occur during product evaluation. ...
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The use of neuroscience tools to study consumer behavior and the decision making process in marketing has improved our understanding of cognitive, neuronal, and emotional mechanisms related to marketing-relevant behavior. However, knowledge about neuroscience tools that are used in consumer neuroscience research is scattered. In this article, we present the results of a literature review that aims to provide an overview of the available consumer neuroscience tools and classifies them according to their characteristics. We analyse a total of 219 full-texts in the area of consumer neuroscience. Our findings suggest that there are seven tools that are currently used in consumer neuroscience research. In particular, electroencephalography (EEG) and eye tracking (ET) are the most commonly used tools in the field. We also find that consumer neuroscience tools are used to study consumer preferences and behaviors in different marketing domains such as advertising, branding, online experience, pricing, product development and product experience. Finally, we identify two ready-to-use platforms, namely iMotions and GRAIL that can help in integrating the measurements of different consumer neuroscience tools simultaneously. Measuring brain activity and physiological responses on a common platform could help by (1) reducing time and costs for experiments and (2) linking cognitive and emotional aspects with neuronal processes. Overall, this article provides relevant input in setting directions for future research and for business applications in consumer neuroscience. We hope that this study will provide help to researchers and practitioners in identifying available, non-invasive and useful tools to study consumer behavior.
... We used the cue utilization theory to categorize the product characteristics identified in the reviewed studies (Olson & Jacoby, 1972;Olson, 1976). According to the theory, consumers use intrinsic and extrinsic cues to evaluate upcycled foods. ...
... laptops, cell phones) to non-durable goods (e.g. detergents, granola bars), price affects the consumers' decision-making not only because it works as a quality cue (Olson, 1977) but also as a heuristic (Judd, 2000). Specifically, according to this price-quality heuristic, the perceived quality of a product would increase with price, especially if other information is lacking (Judd, 2000;Lichtenstein et al., 1993). ...
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Previous studies have shown that the price of a given product impacts the perceived quality of such product. This finding was also observed in medical contexts, showing that expensive drugs increase the placebo effect compared to inexpensive ones. However, addressing a drug's efficacy requires making causal inferences between the drug and the healing. These inferences rely on the contingency between these two events, a factor that is difficult to control in the placebo research. The present study aimed to test whether the price of a given drug modulates its perceived efficacy using a proper (though fictitious) non-effective drug, so that not only the objective contingency, but also the probability of the cause and the probability of the effect could be adequately controlled for. We expected higher efficacy judgements for the expensive non-effective drug than for the inexpensive one. To test this hypothesis, 60 volunteers participated in a contingency learning task that was programmed so that 72% of the patients healed regardless of whether they took the drug. Approximately one-half of the participants were told that the drug was expensive, whereas the other half were told that it was inexpensive. As expected, the efficacy judgements of participants who saw the expensive drug were significantly higher than those who saw the inexpensive one. Overall, our results showed that the price of a non-effective drug modulates its perceived efficacy, an effect that seems to be mediated by the estimated number of doses administered. This result parallels findings in the placebo literature but using a laboratory methodology that allows stronger control of the variables, suggesting that the illusory overestimation produced by the more expensive treatments might be on the basis of the greater efficacy of the more expensive placebos.
... La comparaison du prix observé avec le prix de référence permet en général au consommateur de décider de l'acquisition effective du produit/service (Zeithaml, 1988). Son caractère déterminant dans l'évaluation globale des produits persiste même en présence d'autres variables extrinsèques parmi lesquelles on retrouve, la marque, le lieu de vente, les slogans publicitaires, l'origine, (Olson, 1977). ...
Thesis
Le problème de la sédentarité représente aujourd’hui un des grands enjeux mondiaux et est considéré par l’OMS et l’ONU comme la première cause de mortalité liée aux maladies non transmissibles. Dans le même temps, bien que l’exercice physique se soit révélé comme la meilleure parade contre ces maux, la plupart des consommateurs évoquent une série de freins pour adopter sa pratique régulière.L’objet de cette thèse est de proposer des approches alternatives basées sur le concept de la valeur perçue en marketing qui s’est révélé dans le cas des autres types de biens et services comme un élément permettant de motiver et de fidéliser les consommateurs.Nous avons abordé les sources de la valeur perçue par le consommateur dans le cas du marketing de la personnalisation, du marketing communautaire et du marketing expérientiel dont nous avons intégré les différentes facettes dans une approche combinatoire pour proposer la notion de composante de l’exercice en tant que trade-off entre les coûts et les bénéfices.Nous avons également validé que, d’une part, les valeurs perçues des différentes composantes liées à la pratique de l’exercice se combinaient pour former la valeur globale perçue de l’exercice, et que, d’autre part, celle-ci influençait in fine l’intention de pratiquer régulièrement l’exercice et de le recommander.Les résultats de la recherche nous ont permis de suggérer que l’offre d’exercice devrait être proposée comme un menu à la carte afin de faciliter le processus décisionnel des consommateurs et ainsi les motiver et les fidéliser à la pratique.
... Many determinants of information-seeking have been documented which may account for the extent and patterns of information search in consumers. Those to which most existing research findings gravitate are individual differences (Cox, 1969;Cacioppo and Petty, 1980); previous products experience (Arndt, 1972;Ross, 1974); types of products (Katona and Mueller, 1955;Rogers and Shoemaker, 1971;Ray, 1982); price (Wells and Tigert, 1971;Olson, 1977;Rousseau, 1984); message characteristics (Bauer and Cox, 1967;Cox, 1967b;Britt, 1978); medium characteristics (Reeves, Chaffee and Tims, 1980); brain activity during media exposure (Hansen, 1981;Weinstein, 1982); involvement (Moore and Moschis, 1978a;Burnkrant and Sawyer, 1983;Petty, Cacioppo and Schumann, 1983); perceived risk (Cox, 1967a;Cunningham, 1967;Woodside and Delozier, 1976); brand loyalty (Green 1966;Sheth and Venkatesan, 1968); and impulse purchase behaviour (Newman, 1966). ...
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THIS study proposes that marketing communication can be approached within a socio-psycho logical framework, where market-related information is subject to both internal (cognitive) and external or social influences, specifically reference groups. The concept of Information-seeking within this framework implies that the consumer is actively involved in the interchange of market related Information, and that he actively seeks Information relevant to his goals in the purchase situation. A broad spectrum of literature on Information-seeking is systemized according to the nature and sources of information seeking. From this model, a number of propositions regarding the nature and sources of consumer information seeking for social products are formulated, which form the basis of the empirical investigation. While the findings of the study point to the pervasive influence of reference groups in Information-seeking and consumer behaviour, they also indicate that there is a clear distinction between direct, verbal reference group influence communicated by Informal personal sources and in direct, non-verbal reference group influence communicated by formal, non-personal sources. A number of implications for marketers and advertisers are suggested.
... Cue utilization theory (Olson, 1977) suggests that much of the information consumers acquire about products comes from the processing of product-related intrinsic and extrinsic cues. Cue utilization research examines how intrinsic and extrinsic product cues could sway consumers' opinions to help managers focus their marketing efforts toward product cues that are most likely to favorably influence consumers' quality perceptions. ...
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Since price discounts are costly and can negatively affect consumers' perceptions of quality, it is crucial to identify the factors that make them effective in stimulating purchase behavior. Drawing on cue utilization theory, we examine price discount effectiveness in affecting consumers' reliance on the sale cue based on the provided product touch information as an intrinsic cue and individual consumer differences in sale proneness. Two experimental studies indicate that price discount information, product touch information, and sale proneness interact to determine consumers' responses. Perceived quality is the underlying mechanism behind the observed effects. For nonsale‐prone consumers, product touch information favorably influences responses to large price discounts by addressing product quality concerns and enhancing purchase confidence, but has no effect for regularly priced or low discounted products. For sale‐prone consumers, product touch information is not effective in increasing their responses regardless of the discount size. A qualitative study provides support for these results and highlights the role of perceived quality and purchase confidence. The research contributes to behavioral pricing, cue utilization theory, and sensory marketing and suggests that marketing managers should provide consumers with product touch information when implementing high discounts for products for which prepurchase touch is important.
... Quality 1 of experience goods is difficult to assess before purchase and, consequently, consumers rely heavily in extrinsic cues (Gao et al., 2022;Hite et al., 1991;Kustos et al., 2021;Olson, 1977). Researchers have examined the quality of these goods, by using firm reputation (e.g. ...
Article
This paper analyses the product quality in terms of its price and company’s advertising investment. The central assumption is that the advertising investment of a collective brand member has a positive influence on its product quality until an advertising investment threshold is reached, after which the effect on product quality becomes negative. This change in the slope is explained because consumers perceive advertising effort as excessive, so they wonder if this means there’s a problem with the quality of the product. Advertising investment is curvilinearly related to product quality with a higher slope for products with low price than for those with high price, and positively related to products with moderate price. The results obtained from a sample of Spanish companies that operate in an experience goods industry (i.e. wineries) evidence the proposed relationships. These results reveal the importance of advertising investment for product quality in industries in which the signal of quality is not only reliant on the collective and individual brands; and also suggest the complexities of implementing such investment to get product quality in companies depending on their price.
... Gıda tüketiminde algılanan kalite merkezi bir bileşen olup, tüketiciler tarafından çeşitli boyutlarda değerlendirilmektedir. Algılanan kalite içsel (görünüm, şekil, boyut, vb.) ve dışsal (fiyat, marka adı, menşei ve satış noktası) gibi kalite göstergelerinden (Olson, 1977) etkilenmektedir. Algılanan kalite,ayrıca tüketici deneyimlerinden ve daha da önemlisi tüketicilerin kalite göstergelerine ve kaynaklarına olan güvenden etkilenmektedir (Gurviez, 2001;Brunel ve Pichon 2002), gerçekleştirdikleri araştırmada bazı risk azaltma stratejilerinin, risk azaltma ileticisine ve dolayısıyla kurumsal seviyede ve ürün düzeyinde iletilen işaretlere yönelik güvenle yakından ilişkili olduğunu belirtmektedir. ...
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zet: Dünyada giderek büyüyen organik tarım sektörü, geleceğin önemli yatırım değerlerinden biri olarak kabul edilmektedir .Satın alma ,tüketim sürecinin bir aşamasıdır. Bu çalışmada hedeflenen, organik gıda tüketicisini organik gıda satın almaya yönelten unsurları, güven yönelimleri ve satış noktası seçimi açısından belirlemeye çalışmaktır. Bu makalede düzenli ve nadir olarak organik gıda tüketen kişilere uygulanan bir anketin verileri kullanılmaktadır. Bu anketlerden elde edilen bulgular, marka ve mağaza, önceki deneyimler ve belirsizliğe ilişkin üç temel güven yönelimine vurgu yapmaktadır. Sonuçlar ayrıca, tüketicilerin motivasyonları, güven yönelimleri ve satış noktaları seçimi arasında pozitif bir ilişki olduğunu ortaya koymaktadır. Bu güven yönelimleri, düzenli ve düzenli olmayan tüketiciler arasında iyi bir ayrım yapmaktadır. Sonuç olarak görülmektedir ki yaş, cinsiyet, memnuniyet, satış noktasının seçimi ve aylık harcama, olağan organik gıda tüketicilerinin profilini belirleyen en önemli unsurlar arasında yer almaktadır. Abstarct: Increasingly growing organic agriculture sector in the world, is regarded as one of the major investment value of the future. Consumption is a step in the buying process. In this study, targeted organic food consumers buy organic food that led to take elements of trust and selling point is to try to identify trends in terms of selection. Regular and rare data of a survey administered to people consuming organic food is used in this article. The findings obtained from this survey, brands and stores, emphasizes the three main orientations for previous experience confidence and uncertainty. The results also consumers, motivation, confidence and sales trends reveals that there is a positive relationship between the point of selection. This confidence orientation is to make a good distinction between regular and non-regular consumers. As a result, it is seen that age, gender, satisfaction, selection of points of sales and monthly expenditure, is among the most important factors that determine the profile of the usual organic food consumers.
... To date, empirical research on live-streaming travel commerce lags far behind the industry's development, and many research questions regarding live streamer and customer cocreation behaviors and processes require answers (Van Doorn et al., 2010). From the theoretical perspective, cue utilization theory demonstrates consumer perceive product value from the perspective of signal reception (Olson, 1976), which includes internal cues (physical properties) and external cues (related attributes) (Tulving & Thomson, 1973). Therefore, the prices and sales volumes of goods are determined not only by their quality, colour or desirability but also by the persuasiveness of their brand, packaging or advertising (Kirmani & Wright, 1989). ...
Article
Using visualizations of danmaku and word cooccurrence analysis, the current research evaluates China's live-streaming travel industry by extracting live streamers' and customers' cocreated content to construct a framework of cocreation patterns on live-streaming platforms. The results indicate that streamers and viewers focus on the themes of "hotel amenities and services", "live-streaming commerce", "viewers' evaluations and comments", "business strategy of Ctrip", and "price of tourism and hospitality products". Cocreation behaviors on the Ctrip Live platform include the following: "question only", "answer only", and "Q&A". Six categories of cocreation patterns were also identified. Thus, this paper contributes to the literature on live-streaming travel commerce by providing theoretical insights and practical implications, specifically, for tourism enterprises' recovery following the COVID-19 pandemic.
... To answer the questionnaire items, the participants used a 7-point Likert scale with scores ranging from 1 (strongly disagree) to 7 (strongly agree). All the reliability coefficients were higher than the standard value of 0.7 proposed by Nunnally and Bernstein (1978). Content courtesy of Springer Nature, terms of use apply. ...
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Affective events theory has been widely used in the organizational behavior field but rarely used in the green marketing field. This study suggested that consumer purchase behavior is a process of psychological decision-making and presents a green consumer affective events model based on affective events theory. It employed questionnaire survey and collected data from 343 valid questionnaires in Taiwanese and structural equation modelling to apply to verify the hypotheses. The results showed that excessive product packaging and corporate greenwash behavior are valuable concepts in green management and operation of enterprises which customers regarded them as potentially affective event and reduce their green purchase intention. By addressing the behavior mechanism, this study presents a novel perspective on green purchase intention.
... On the other hand, cognitive theory posits that information is the linking factor between quality and price (Olson, 1977). Customers will be able to infer price levels rationally from the available information about a product/service attribute. ...
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Using the DART (dialogue, access, risk, and transparency) model as a core framework of value co-creation (VCC), and in the context of hospitality services, this study explores the role VCC might have in customers' perceived value (PV). The study delineates two characteristics of PV-perceived quality and price-as sources for competitive strategy. It attempts to establish the existence of an effect of VCC implementation on these sources of strategy, as well as the intensity of the effect. The study's data were collected via self-administered questionnaires from 484 tourists on their return home. Through structural equation modelling, we tested our research hypotheses. The research results indicate that transparency and risk affect a hotel guest's perceptions of price and quality, while access only determines the quality. Contrary to what we expected, dialogue did not have a positive influence on the perceived price or perceived quality. Finally, the results support the notion that perceived quality affects the perceived price. As a firm-orientated model, the DART model was applied to the customer context for the first time in this study, which contributes to the marketing literature.
... Most of the research on extrinsic evidence has focused on the price, the brand, the name of the store and the level of advertising (Dodds et al, 1991;Mazursky et al., Jacoby, 1985;Nelson, 1974 ;Rao et Monroe, 1989). However, the price/quality relationship remains higher even if it has been shown that the availability of other indicators generally reduces the price as a signal (Olson, 1977;Bonner & Nelson, 1985;Dodds et al, 1991). In the literature of marketing the work of Monroe & Krishnan (1985); Rao & Monroe (1989) ;Dodds, et al., (1991); Teas & Agarwal (2000); Dodds & College (2001) showed a positive effect of the perceived price on perceived quality. ...
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The objective of this research is to understand the origin and the consequences of low pricing in food sectors in times of economic crisis. Therefore, a qualitative approach is adopted because it helps us to better understand the complexity of pricing in this situation. We conducted 6 interviews with directors of supermarkets. Results show that the reduction of financial well being is the main antecedent of establishing low prices. Furthermore, low pricing strategy has an impact on the creation of value for consumer.
... The brand represents much more than just the marketing mix (Popoli, 2015). It is a set of feelings based on personal, intrinsic and extrinsic clues that will fill the consumer gap between their current life and personality and their ideals (Olson, 1977), linked to the customer's meaningful values (Tong Qin & Liu, 2019). ...
Article
The purpose of this paper is to analyze the relationship between brand and competitive advantage (through differentiation) and the mediating effect of positioning and market orientation in this relationship. An empirical study was developed using a quantitative methodological approach. The object of the study was Portuguese exporting companies in the footwear industry, to which a questionnaire survey was applied. The results show that (1) brand has a significant direct impact on positioning and market orientation and competitive advantage through differentiation, (2) competitive advantage through differentiation is directly impacted by positioning, (3) market orientation does not have a significant direct impact on competitive advantage through differentiation, and (4) positioning has a mediating effect on the relationship between brand and competitive advantage through differentiation, and market orientation does not have on it.
... Le choix alimentaire est un objet d'étude multidimensionnel (Asioli et al., 2017 ;Köster, 2009) Dans la suite de ce manuscrit, nous qualifierons les informations présentes sur l'étiquette (e.g., prix, origine, méthode de production) comme étant des attributs qui renvoient aux caractéristiques ou dimensions du produit (Tversky, 1977). Les attributs d'un produit sont communément dichotomisés selon la typologie intrinsèque et extrinsèque (Jacoby, Olson, & Haddock, 1971 ;Olson, 1977). Les attributs intrinsèques sont inhérents au produit (e.g., l'arôme, le goût, l'apparence, la couleur) alors que les attributs extrinsèques constituent les informations que l'on donne au point de vente (i.e., prix, origine, méthode de production) aux consommateurs (Szybillo & Jacoby, 1974 ;Veale & Quester, 2009 L'origine, dans son sens le plus restreint, renvoie à une aire de production qui confère au produit des qualités spécifiques (Pilleboue, 1999). ...
Thesis
Les bouleversements sociétaux et environnementaux (scandales alimentaires, pollution agricole) font que les consommateurs sont de plus en plus attentifs au lieu de production mais aussi à la façon dont sont cultivés les aliments qu’ils consomment. Ce travail s’inscrit dans ce contexte et documente comment les informations fournies sur l’étiquette influencent l’achat de produits frais. Deux séries d’études ont été réalisées pour investiguer les raisons pour lesquelles l’origine ou la méthode de production, pourtant importants aux yeux des consommateurs, ont moins d’impact que le prix dans une situation d’achat. La première série d’études s’est focalisée sur l’hypothèse selon laquelle la prédominance du prix sur les autres attributs peut être expliquée par leur absence ou leur manque de visibilité sur les étiquettes. Dans l’étude 1, nous avons eu recours à une observation expérimentale d’une situation d’achat où les attributs de l’étiquette (origine, prix) sont disponibles et clairement visibles. Les résultats montrent que les produits frais d’origine locale sont choisis à prix bas ou moyen mais sont délaissés lorsqu’ils ont un prix élevé. Pour l’étude 2, nous avons utilisé la méthodologie de la mesure fonctionnelle afin d’étudier l’impact d’autres facteurs et, ainsi, appréhender un éventail plus large des compromis opérés par les consommateurs. Ils ont, notamment, une plus forte intention d’achat pour un produit biologique importé que pour un produit d’origine locale issue de l’agriculture conventionnelle. Nous avons aussi identifié des profils de consommateurs qui permettent d’affiner l’interprétation des résultats. Dans l’étude 3, le Test d’Association Implicite a permis de tester les associations implicites entre les concepts de prix et de distance de production. Les résultats révèlent que les consommateurs associent implicitement une faible distance de production à un coût faible, expliquant potentiellement la préférence des consommateurs pour les produits locaux à prix bas plutôt qu’élevé. Dans la deuxième série d’études, nous examinons l’hypothèse selon laquelle les caractéristiques visuelles des attributs conduisent à un traitement perceptif biaisé en faveur du prix. En utilisant un paradigme de recherche visuelle, les études 4 et 5 mettent en avant que (1) le prix est identifié plus rapidement que l’origine et (2) que manipuler la saillance d’un distracteur non pertinent n’a pas d’effet significatif sur l’identification du prix.
... -il y a besoin de réduction du risque perçu à l'achat (Jacoby, Olson et Haddock, 1971 ;Olson, 1977 ; cités par Dawar et Park, 1994) ; ...
Thesis
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Véritables gages pour le consommateur, les labels alimentaires s’affichent partout et sont tellement nombreux qu’il devient de plus en plus difficile de s’y retrouver. Bio, Origine contrôlée, Commerce équitable, respect de l’environnement, etc. Cette profusion a entamé la confiance des consommateurs dans les labels en particulier à cause de leurs imprécisions sur la composition, l’origine et la faible traçabilité du produit. Les petits producteurs de cacao brésiliens s’interrogent sur les informations à fournir aux consommateurs pour leur garantir la qualité des tablettes de chocolat noir. Nous proposons, dans cette recherche, basée sur la théorie de l’action raisonnée et sur la psychologie cognitive, d’évaluer les effets des labels et des attributs intrinsèques des produits sur l’attitude et l’intention d’achat des produits alimentaires. A cette fin, deux modèles conceptuels qui intègrent les acquis de la littérature sur les labels et les marques, ceux de la littérature sur l’importance des avantages recherchés dans les produits sont proposés. Ils mettent en relation les effets comparés des labels Biologiques, Équitables et la marque artisan et des attributs intrinsèques, l’origine et le taux de cacao. Les résultats d’une expérimentation de 12 tablettes de chocolat noir auprès de 524 consommateurs ont permis d’une part de valider l’effet de halo des marques et des labels et le rôle des attributs intrinsèques dans l’évaluation des produits. Les informations apportées par les labels permettent une amélioration de l’attitude des consommateurs envers les produits dégustés en aveugle. Partant des bénéfices goût, santé et plaisir, nous montrons la contribution forte des labels au bénéfice plaisir et l’apport des bénéfices santé et gout par les attributs intrinsèques.
... In a similar manner, price information is commonly used to infer the quality of a product in the absence of other cues. 45,46 If a product price is higher than an individual's reference point (i.e., the expected cost of the item), consumers assume the product must also be of high quality and the overall subjective value increases. 47 In this way, price serves as a heuristic cue to cope with uncertainty. ...
Article
Background Mandatory disclosure of the price of prescription drugs within direct-to-consumer pharmaceutical advertisements (DTCA) has been proposed as a potential means of curbing rising drug costs in the United States. While price transparency in DTCA has widespread public support, empirical evidence regarding the effects of such drug prices disclosures remains limited. Objectives This study assessed the degree to which a price disclosure was noticed, the individual characteristics associated with price disclosure recognition, and the impact on perceived drug affordability, effectiveness, and safety. Methods A randomized experiment was conducted among 2,138 members of the Amerispeak online panel. Participants were shown a television commercial for a drug treating either type II diabetes, deep vein thrombosis/pulmonary embolism (DVT/PE), or rheumatoid arthritis (RA) that disclosed the list price, disclosed the list price plus the average out-of-pocket cost, or had no price disclosure. Results Roughly forty percent of participants noticed when a price was disclosed while 20–24% noticed information about individual costs varying (the higher of these percentages occurred when the average out-of-pocket cost was provided). Attention did not vary systematically with the cost amount. Recognition of the different elements of the price disclosure were most predicted by sociodemographic variables such as race, education, and income as well as health characteristics. Price disclosure altered perceived affordability of the advertised medication in a manner consistent with the costs provided, but such consistent significant effects were not found for perceived drug effectiveness and safety. Conclusions Repeated exposure to price disclosure in television DTCA or supplementary sources of price information may be necessary to increase attention to drug price information, especially among those who are most vulnerable to the burden of drug costs. Price transparency appears useful for adjusting affordability perceptions, but additional research needs to examine how such perceptions factor into healthcare decision-making and drug pricing.
... A study by Cabuk and Olson (1977) tells positive influence of perceived product quality on purchase intention and suggests that consumers are willing to purchase organic food products because the rapid consumption. ...
Research
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The purpose of this paper is identifying the influence of purchase intention on actual purchase behaviour. The main research question of this study is "Whether purchase intention influence on actual purchase behaviour? In order to answer this main research question, primary data were collected from 24 Grama Nilathari divisions in Batticaloa Manmunai West Divisional Secretariat area. A total of 287 completed questionnaires were gathered, representing 75.13% response rate, using stratified random sampling method. The data were analyzed by using multivariate analyses. The finding of the study revealed that actual purchase behaviour of organic food products was significantly influenced by the consumers' purchase intention. The research draws Theory of Planned Behaviour to investigate the influence of purchase intention of actual purchase behaviour. The results of the study offer several theoretical as well as managerial implications to fill the research gaps.
... A study by Cabuk and Olson (1977) tells positive influence of perceived product quality on purchase intention and suggests that consumers are willing to purchase organic food products because the rapid consumption. ...
Article
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The need for organic food is increasing due to greater consumer awareness of the nutritional value and food protection for health care. There are great potentials for organic food growth in other regions as well, such as developing countries, including Sri Lanka. This situation forced to gain knowledge about the consumers' perception and intention towards organic food products. The main research question of this study is "Whether health, safety, environmental friendly and animal welfare, and product quality influence on purchase intention?"In order to answer this main research question, primary data were collected from 39 Grama Nilathari divisions in Batticaloa Eravurpattu Divisional Secretariat area. A total of 321 completed questionnaires were gathered, representing 81.89% response rate, using stratified random sampling method. The data were analysed by using multivariate analyses. The finding of the study revealed that intention to purchase organic food was significantly influenced by the consumers' health, safety, environmental friendly and animal welfare and quality perception. The findings proposed useful information to organic food products marketers to develop effective marketing strategies to convince organic-concerned segment to purchase the organic food products and to enhance the pro-environmental purchasing behaviour in Batticaloa Eravurpattu Divisional Secretariat area.
... Magnier & Schoormans, 2017). Any pricing information was omitted as it could be used by participants to infer about product quality and could influence purchase intention, thereby detracting from the packaging appearance (Olson, 1977). ...
... Second, our findings also contribute to an extensive literature documenting price judgments and quality expectations typically moving in the same direction (Etgar & Malhotra, 1981;Jacoby & Olson, 1977;Olson, 1977;Zeithaml, 1988). For example, Zeithaml (1988) suggests that price (among a number of other attributes such as brand name and level of advertising) serves as a positive cue to quality, especially when the product attributes are ambiguous. ...
Article
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Consumers commonly encounter products with descriptors. Descriptors with meanings understood by consumers clearly affect judgments of the described products. However, can descriptors for which consumers do not know the word’s semantic meaning (as is increasingly common in a globalized world) still affect judgments in systematic ways, via altering the product’s perceived prototypicality? We examine two kinds of judgments that typically move in the same direction, but which we propose are affected by prototypicality in opposite directions: (1) judgments of how expensive the product is and (2) expectations of the subjective quality of the product. Four experiments show that meaningless descriptors lead consumers to assume that a product is a less prototypical version in its category, increasing price judgments but decreasing quality expectations. Altogether, meaningless descriptors lead to more negative attitudes towards products. This research thus sheds light on the impact of encountering descriptor words with unknown meaning, showing that encountering such words does not lead to the typical effects wherein factors that lift price judgments also lift quality expectations.
... However, since it is not possible to use all the information about a product, they choose the way of saving cognitive effort (Macrae, Milne, and Bodenhausen 1994;H€ aubl and Elrod 1999). Clues used in evaluating products can be internal or external (Olson 1977). Internal cues are based on physical properties such as color, size, and performance characteristics. ...
Article
The language used in brand names and product labels has various effects on consumer perceptions. A language that is spoken all over the world such as English is one of the most widely spoken and used languages in advertising. Another view regarding the use of foreign languages is that consumers spend more effort mentally because they attract more attention than their language and thus the memorability of the products is higher. Consumers' perception of the language used in brand names and product labels may not be the same for all products. Since the motivation of consumers to buy these products will be different, it can be expected that the effects of the language used will be different. In this study, a scenario-based experiment is utilized by manipulating brand name, product label, and product type. According to the results, there is a significant two-way interaction effect of brand name and product label; consumers' product evaluation and purchase intention are higher for foreign brand names (vs. local) and Turkish–English product labels (vs. just in Turkish). Although not hypothesized, there is also a three-way interaction among brand name, product label, and product type.
... They evaluate innovativeness as a favorable characteristic of the firm, and this should lead to a positive evaluation (Niedrich & Swain, 2003). Based on cue utilization theory, specific features of the target object can become a cue for other characteristics of the target, if they have confirmation and predictive value (Olson, 1977). Moreover, previous empirical studies have shown that customers depend on associations to understand specific features when particular information is lost (Brown & Dacin, 1997;Gürhan-Canli & Batra, 2004). ...
Article
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Digital development transformation and rapid dissemination of technological innovations, has let various e-retailers site make an advanced investment to get the benefit of the latest business opportunity for building innovations. Thus, this study identifies the main effect of perceived e-retailers websites innovativeness on supply chain performance, functional competences, perceived self-congruence, customer hope, perceived service advantages, word of mouth behavior, and hedonic value. Data used in this study were collected from banking customers who own a visa card that allows them excute an online payment and the sample was tested on the analysis model using (SEM-PLS) tool. The results of the study support that e-retailers' website innovativeness was positively associated with the constructs of each innovation factor. The given analyses supervise practitioners for better management of e-retailers website innovation implementation along with the supply chain performance.. ng Science, Canada 2020 by the authors; license Growi ©
... Additionally, doctoral candidates' publications in top ranked journals strengthen the confidence that a candidate's publication in a particular journal meets a certain quality standard and thus served as important predictors of the candidate's placement success. This is consistent with the cue utilization theory, suggesting that some cues have higher predictive and confidence values than other cues (Olson, 1977;Richardson et al., 1994), and that cues with such high values are given the greatest weight in assessing quality. The predictive value of a cue is directly connected to the degree to which the evaluators associate the cue with quality. ...
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Before engaging with the already intensive and still increasing personal branding activities in many fields of practice, a scholarly approach would call for a more specific definition of the concept of personal branding processes and the resulting human brands. A multi-step analysis of the growing body of literature on personal branding is employed, integrating a framework that covers six key research streams of personal branding, (1) terminology and definition, (2) underlying theories, (3) classes and categories, (4) benefits, (5) antecedents, and (6) key ingredients and applications, complemented by challenges the domain of personal branding has to cope with. The analysis shows that personal branding is an interdisciplinary concern, which is still in its infancy and in which universally valid personal branding frameworks or even theories cannot be identified yet. Personal branding appears as a source for new academic impulses, as it may sensitize scholars to opportunities for intensifying collaboration with practitioners and with other academic domains to enrich and disseminate knowledge in their fields.
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Religion is one of the most important aspects for Indonesians. The relationship between religion and pet food buying behavior may seem absurd at first, but this research has shown that religion indeed plays a definitive role in the outcome of Indonesian’s pet food buying habits. The paper researched the relationships between how close one is with their pets, the presence of religious cues in pet food packaging, on the propensity to purchase pet food, all the while keeping religion in mind using the theory of planned behavior. This study uses the services of an online survey from Google Forms and extracted Indonesian samples of 111 respondents living or working in Jakarta and its vicinity. It was found that there is an insignificant direct relationship between pet attachment and propensity to purchase pet food, but there are significant relationships between the mediating relation of using religious cues in pet food packaging with pet attachment and pet owner’s religion. This paper lays a foundation of explaining the context of religion and pet food buying for future researchers to refer to.
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Purpose Empirical research on the influence of package size on consumers' quality perception has been scarce. Yan et al. (2014), an initial study focusing on this topic, showed that a small package generates higher perceived quality than a large package of the same brand. To cultivate a deeper understanding of such an effect, this paper aims to extend that study by examining the process by incorporating the evaluation context as a moderator. Design/methodology/approach Two experiments were carried out. In Study 1 ( n = 380), the effect of package size on perceived quality was investigated by comparing a standalone context in which a single package size was presented and a context in which two different package sizes were shown. In Study 2 ( n = 436), a standalone context was compared with another context in which participants viewed two different sizes but directed their attention to only one. Findings The findings indicate that the package size effect is not universal, and that it generally appears in a standalone context. In the contexts where two sizes were presented, it appears when consumers' attention is directed to only one size, whereas the effect does not manifest when consumers focus equal attention on both. The impact of the evaluation context is also stronger for small packages than for large packages. Originality/value This paper adds knowledge to packaging and cue-utilisation literature by clarifying a boundary condition of the impact of package size on consumers' quality perception.
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