Featured Research

from universities, journals, and other organizations

High quality or poor value: When do consumers make different conclusions about the same product?

Date:
October 22, 2012
Source:
Journal of Consumer Research, Inc.
Summary:
Depending on which naive theory consumers use, a low price can indicate either good value or low quality, whereas a high price may imply either poor value or high quality, according to a new study.

Depending on which naive theory consumers use, a low price can indicate either good value or low quality, whereas a high price may imply either poor value or high quality, according to a new study in the Journal of Consumer Research.

Related Articles


"Consumers rarely have complete information and use various strategies to fill the gaps in their knowledge as they consider and choose products. One of these strategies involves using naive theories: informal, common sense, explanations that consumers use to make sense of their environment. For example, consumers may believe that popular products are high in quality while also believing that scarce products are high in quality," write authors Hιlθne Deval (Dalhousie University), Susan P. Mantel (Ball State University), Frank R. Kardes (University of Cincinnati), and Steven S. Posavac (Vanderbilt University).

In one study, consumers were shown an ad for a bottle of wine with either a high or low price. When subtly reminded of quality, consumers evaluated the expensive wine more favorably than the cheap wine. However, when subtly reminded of value, they rated the cheap wine more favorably.

Sales promotions succeed when consumers perceive that they are getting a good deal, but they can also backfire if consumers perceive that lower prices indicate poor quality. Or, as J.C. Penney recently discovered, a company may implement an everyday low-pricing strategy that manages to reduce brand value and alienate consumers if many of them believe that low prices equal low quality. Over the years, J.C. Penney customers had become so used to sales that they no longer believed they were getting a good deal.

"Using subtle tactics, companies can bring a pre-existing naive theory to the consumer's mind in order to guide favorable interpretation of their message. Yet, these tactics can backfire dramatically if they design a strategy by assuming that a certain naive theory is going to drive consumer evaluation and choice when, in fact, several naive theories are available to the consumer," the authors conclude.


Story Source:

The above story is based on materials provided by Journal of Consumer Research, Inc.. Note: Materials may be edited for content and length.


Journal Reference:

  1. Hιlθne Deval, Susan P. Mantel, Frank R. Kardes, and Steven S. Posavac. How Naive Theories Drive Opposing Inferences from the Same Information. Journal of Consumer Research, April 2013

Cite This Page:

Journal of Consumer Research, Inc.. "High quality or poor value: When do consumers make different conclusions about the same product?." ScienceDaily. ScienceDaily, 22 October 2012. <www.sciencedaily.com/releases/2012/10/121022121908.htm>.
Journal of Consumer Research, Inc.. (2012, October 22). High quality or poor value: When do consumers make different conclusions about the same product?. ScienceDaily. Retrieved March 6, 2015 from www.sciencedaily.com/releases/2012/10/121022121908.htm
Journal of Consumer Research, Inc.. "High quality or poor value: When do consumers make different conclusions about the same product?." ScienceDaily. www.sciencedaily.com/releases/2012/10/121022121908.htm (accessed March 6, 2015).

Share This


More From ScienceDaily



More Mind & Brain News

Friday, March 6, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Former NFL Players Donate Brains to Science

Former NFL Players Donate Brains to Science

Reuters - US Online Video (Mar. 3, 2015) — Super Bowl champions Sidney Rice and Steve Weatherford donate their brains, post-mortem, to scientific research into repetitive brain trauma. Jillian Kitchener reports. Video provided by Reuters
Powered by NewsLook.com
Alzheimer's Protein Plaque Found In 20-Year-Olds

Alzheimer's Protein Plaque Found In 20-Year-Olds

Newsy (Mar. 3, 2015) — Researchers found an abnormal protein associated with Alzheimer&apos;s disease in the brains of 20-year-olds. Video provided by Newsy
Powered by NewsLook.com
This Nasal Treatment Could Help Ease Migraine Pain

This Nasal Treatment Could Help Ease Migraine Pain

Newsy (Mar. 2, 2015) — Researchers gave lidocaine to 112 patients, and about 88 percent of the subjects said they needed less migraine-relief medicine the next day. Video provided by Newsy
Powered by NewsLook.com
How Facebook Use Can Lead To Depression

How Facebook Use Can Lead To Depression

Newsy (Mar. 1, 2015) — Margaret Duffy of the University of Missouri talks about her study on the social network and the envy and depression that Facebook use can cause. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
 
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:  

Breaking News:

Strange & Offbeat Stories

 

Health & Medicine

Mind & Brain

Living & Well

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:  

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile iPhone Android Web
Follow Facebook Twitter Google+
Subscribe RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins