The impact of product familiarity on the price-perceived quality relationship

• Main Author: Rao, Akshay R.
• Other Authors: General Business
• Format: Others
• Language: en_US
• Published: Virginia Polytechnic Institute and State University 2016
• Subjects: LD5655.V856 1986.R362; Prices; Quality of products
• Online Access: http://hdl.handle.net/10919/71176

This dissertation investigates the dissimilar use of price and intrinsic information in product quality assessments by differentially familiar buyers. Further, the impact of price and intrinsic information in evaluating monetary sacrifice, product value and purchase intention are examined. In particular, the impact of differing degrees of buyer familiarity with the product is hypothesized to affect the extent to which price or intrinsic information is used to assess product quality. A secondary set of hypotheses posits relationships between different cues used in value perceptions and manifestations of behavioral intention, depending on buyer familiarity with the product. Pre-experimental work was conducted to accomplish numerous objectives. First, it was necessary to identify a product which exhibited an objective quality-price association in the marketplace that would be used in the experiment. Second, price and intrinsic cue levels were established through pretests. Third, with the assistance of experts, a scale was developed to determine subject familiarity with the product. Based on refinements dictated by pre-experimental work, data were collected to examine the effects of price and intrinsic cues on perceptions of quality, sacrifice, value and willingness to buy, in a 4x2 between subjects factorial design. Subjects' familiarity with the product was assessed and, depending on their degree of familiarity, their responses were analyzed in one of three similar experiments. Data were collected using both magnitude and category scaling procedures. The degree to which variations in the independent variable resulted in variations in responses were compared for the three differentially familiar groups to assess support for the hypotheses. In general, there is a great deal of support for the primary hypotheses, suggesting that unfamiliar, moderately familiar and highly familiar buyers display different cue utilization strategies while assessing product quality. It is likely that all subjects not having the same value for money resulted in relatively weak support for the secondary hypotheses. The implications of the findings are discussed from the perspectives of conceptual, methodological and analytical advances as well as practitioner relevance. The limitations of the research effort are outlined as are potential areas of future research. === Ph. D.