The Signaling Impact of Low Introductory Price on Perceived Quality and Trial

Economic signaling theory suggests that consumers interpret price within the context of market conditions. Under specific conditions it predicts that low price may signal high quality. Results from an experiment designed to test the behavioral assumptions underlying this prediction indicate that con...

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Bibliographic Details
Published inMarketing letters Vol. 8; no. 3; pp. 251 - 259
Main Authors Dawar, Niraj, Sarvary, Miklos
Format Journal Article
LanguageEnglish
Published Kluwer Academic Publishers 01.07.1997
Subjects
Capital costs
Consumer advertising
Consumer behavior
Consumer behaviour
Consumer information
Consumer prices
Consumer research
Consumers
Information
Magnetic storage
Market conditions
Market prices
Marketing
Prices
Product quality
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Summary:Economic signaling theory suggests that consumers interpret price within the context of market conditions. Under specific conditions it predicts that low price may signal high quality. Results from an experiment designed to test the behavioral assumptions underlying this prediction indicate that consumers intentions to purchase conform to the predictions of economic signaling theory, but their judgments of product quality do not. The results suggest that consumers' response to signals may be more complex than previously shown.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0923-0645
1573-059X
DOI:10.1023/A:1007963128115