The results revealed no three-way interaction on all dependent variables. The contextual appeals are the same as Study 1; the two prices were moderately high and low. That is, consumers would be likely to conclude that the quality is not as high as promised and/or the price of products is not as low. Study 2 shows that these effects are salient when consumers have a weak price–quality schema or a low need-for-cognition. Marketers frequently adopt a “high quality, low price” appeal in advertisements. These items were averaged to form a PQ-schema index (α = 0.92). To the best of our knowledge, this research is the first to reveal the specific role of the HQLP appeal by showing its ability to attract consumers in the absence of price discounts. Although we selected a product category after carefully considering the participants of our studies, the fact remains that shopping experiences, income levels, and interests differ. Price perception was not influenced by PQ-schema. Since price–quality inferences are evoked when evaluating high priced products, the appeal is not capable of leading consumers to perceive high quality. 3099067 Impact of “High Quality, Low Price” Appe .... https://doi.org/10.1080/10496491.2015.1088922. These three prices significantly differed (all t(25)s > 4.0, p <.0001). H2. However, we presume that occurrences of these discounting depend on the level of price. Thus, despite the seeming contradiction inherent in this claim, consumers seem to favor it. Peterson and Wilson (1985) showed that consumers who made such an inference possessed a price–quality schema (PQ-schema). The perceptions will be as favorable as the HQ-only appeal and more favorable than the LP-only appeal when the price is low. The current research also has several limitations that should be the focus of future research. This is a critical problem because this negative effect is much larger than the positive effects. According to research from Washington University in St. Louis, producers of lower quality products actually have better prospects for gaining market share and improving their bottom line. We intended to understand the psychological impact of this appeal on consumer evaluations and shed light on how this relationship is moderated by the consumers' characteristics. About 0% of these are LED Tube Lights. Discounts have been found to lead to lower quality perceptions (Raghubir & Corfman, 1999); however, providing a message assuring product quality helps counter this negative perception (Darke & Chung, 2005). The effect of this concept and a similar concept on contextual appeals was analyzed by Inman et al. The HQLP appeal was favored more by low NFC group than high NFC group when price was moderately high (t(15) = 3.46, p <.01). Then, Wheatley, Chiu, and Goldman (1981) found that physical cues (product samples) exerted a more pronounced effect than price. Low quality threatens the high end.What company wouldn't attribute its profits to the quality product it produces? It was also found that PQ-schema adherence varied among consumers and product categories (Lichtestein & Burton, 1989). Most of the moderating effects of both the PQ-schema and NFC were observed in quality perceptions and purchase intentions. If retailers plan to emphasize mainly on high quality and wish to attract consumers who seek for high quality, then the use of HQ-only appeal might be more suitable. Companies, even the well-managed ones, lost half or more of their market capitalization in few months. When do price promotions affect pretrial brand evaluations? By closing this message, you are consenting to our use of cookies. The experiment employed a 3 (contextual appeal) × 2 (price) between-subjects design. The primary contribution of this research is to provide additional understanding of contextual appeals that may influence consumers' evaluations. The results compiled are acquired by taking your search "high quality at low price" and breaking it down to search through our database for relevant content. ANOVA conducted at each price level determined that the main effect from contextual appeal was observed only for high price (F(2, 75) = 13.26, p <.0001). The answer might be: the company that competes on price. Quality perceptions, price perceptions, and purchase intentions generated by the HQ-only appeal would be more favorable for consumers having a strong PQ-schema than for consumers having a weak PQ-schema. Study 2 further investigates what type of consumer accepts this appeal more easily. Registered in England & Wales No. In the context of low price, the HQLP appeal will generate the same level of quality perceptions with the HQ-only appeal and the same level of price perceptions with the LP-only appeal. Clearly, perceived value represents a tradeoff between perceived quality and monetary sacrifice. Price consciousness refers to the degree to which consumers exclusively focus on paying low prices (Lichtenstein et al., 1993). The “low price” cue of the HQLP appeal and the LP-only appeal were viewed similarly. This generates an increase of quality perceptions; however, the appeal does not influence perceptions of price. (1993), we define this schema as the generalized belief across product categories that the level of price is positively related to product quality. Low Price High Quality Pigment Green G7 Get Latest Price . H1. The effect of third-party rating on quality perceptions was examined by Akdeniz, Calantone, and Voorhees (2013). If an item has a high price, this doesn’t necessarily mean it is a high quality product, just as a low price point does not indicate an item is of low quality. The HQLP appeal was less effective when the PQ-schema was stronger and when NFC was higher. Price is known to have a dual role, first as an indicator of quality, as discussed above, and second, as an indicator of monetary sacrifice. Quality perceptions, price perceptions, and purchase intentions generated by the HQLP appeal would be more favorable for low NFC consumers than for high NFC consumers. (2007) confirmed that perceived quality and monetary sacrifice exist in opposition; that is, perceived quality is high, monetary sacrifice is low and vice versa. Semantic cues and buyer evaluation of promotional communication, The effect of price, brand name, and store name on buyers' perceptions of product quality: An integrative review, The moderating effect of prior knowledge on cue utilization in product evaluations, Some consequences of the habit of judging quality by price, The effects of perceived scarcity on consumers' processing of price information, The effects of extrinsic product cues on consumers' perceptions of quality, sacrifice, and value, Best value, price-seeking, and price aversion: The impact of information and learning on consumer choices, A note on the relationship of price and imputed quality, When demand accelerates demand: Trailing the bandwagon, The effect of food label cues on perceptions of quality and purchase intentions among high-involvement consumers with varying levels of nutrition knowledge, An anchoring and adjustment model of purchase quantity decisions, The effects of price, store image, and product and respondent characteristics on perceptions of quality, Physical quality, price, and perceptions of product quality: Implications for retailers, Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. More recently, Walters and Long (2012) found that experts who have nutrition knowledge generated higher quality perceptions and purchase intentions when the extrinsic cue (“all natural”) was consistent with the intrinsic cue (ingredient). Smith GK. Thus far, numerous studies analyzed effects of product-related attributes on consumers' quality perceptions (e.g., Monroe & Dodds, 1988; Olson, 1977). The HQLP appeal was favored more by low NFC group than high NFC group regardless of price level (t(15) = 3.46, p <.01 for moderately high price; t(20) = 1.69, p <.1 for low price). To determine price levels, we ran a pretest (n = 26) and measured prices that participants thought expensive, reasonable, and inexpensive. The results of Study 2 extend those of Study 1. Ever since Leavitt (1954) empirically tested this consumers' tendency, it has long attracted researchers' attention, and a considerable number of studies have been reported. Inman et al. Low price doesn’t always mean low quality, but it could mean a challenge to high-end products Research indicates the real economic threat China poses June 8, 2006 By Shula Neuman What company wouldn’t want to attribute its profits to the quality product it produces? Based on these findings, we predict that highly price conscious consumers evaluate the LP-only appeal more favorably because they are considered looking for indications of low or discount prices in general and the LP-only appeal meets their needs. There results indicate that H6 was supported for quality perception and purchase intention. Some use high price points to emphasize the quality of their products. Table 1 shows the means by condition. Overall, the HQLP appears to be an effective appeal for low prices more than high prices. 58435 items found for high quality coats. The HQLP appeal was favored more by weak PQ-schema group than strong PQ-schema group regardless of price level (t(19) = 3.19, p <.005 for moderately high price; t(20) = 9.4, p <.0001 for low price). Purchase intentions generated from the HQLP appeal will be more favorable than the HQ-only appeal or LP-only appeal when the price is high. Multiple cues studies extended earlier studies by including not only price, but also other cues in their analyses. This implies that the “low price” cue of the HQLP appeal was not discounted and the HQLP appeal and LP-only appeal were viewed similarly in terms of price perceptions. Wheatley and Chiu (1977) compared three extrinsic cues (price, store prestige, and carpet color) and found that price had the strongest effect, followed by store prestige, then color. Second, most participants possess some knowledge about product features and prices. NFC refers to an individual's tendency to engage in and enjoy effortful cognitive endeavors (Cacioppo & Petty, 1982). Finally, Suri and Monroe (2001) showed that the acceptable price range was wider for high NFC consumers than for low NFC consumers because high NFC consumers use price–quality inference and low NFC consumers consider monetary sacrifice more than product quality. These items were averaged to form a NFC index (α = 0.87). Abstract and Figures Marketers frequently adopt a “high quality, low price” appeal in advertisements. The present work also contributes to an understanding of the mechanism by which need-for-cognition moderates the impact of this appeal. If money has been tight but you find yourself needing a reliable vehicle to keep your life moving, Byrider wants to help. These consumers also have lower price acceptability levels and narrower latitudes of acceptable prices (Lichtenstein et al., 1988), and have a higher attitude on private label brands (Burton et al., 1998). The company can report an EPS of Rs 8 for 2019-20. Monetary sacrifice is a consumer's perception of what must be given up in order to purchase a product or a perception of making a sacrifice by paying a specific price. Low NFC consumers tend to react to firms' promotional message more readily than high NFC consumers. As expected, the effect differs depending on the price level. Some of the reasons why small eCommerce businesses may benefit from using a market penetration low pricing strategy: Increased Sales Volume. Therefore, the HQLP appeal may also help to counter such negative quality perceptions. However, following the price–quality inference theory (e.g., Monroe & Dodds, 1988; Olson, 1977), we considered the possibility that these cues contradict each other because the theory essentially implies that high quality equals to high price. Based on these finding, we predict that high NFC consumers focus more on the two contradicting cues in the HQLP appeal than low NFC consumers. HP 15-ac120tu. H4b was also supported for quality perception and purchase intention, but in the case of moderately high price. Excluding the middle third of the distribution of NFC scores, the mean score in the high group was 5.37 and the mean score in the low group was 3.54. The HQ-only appeal was favored more by strong PQ-schema group than weak PQ-schema group only when price was moderately high (t(21) = 5.02, p <.0001). The only effect found to be negative was that the HQLP appeal lowered quality perception of high priced products. Oklahoma City, Okla. However, little scholarly research has examined wording appeals particularly used for non-discounted prices. Re: Low Price High Quality And Coverage Italian Stucco by csiworksnig(f): 12:31am On Jan 17, 2019 Yeah, I decided to post this half done work pics.. Product #: gm933100926 $ 12.00 iStock In stock Recommended articles lists articles that we recommend and is powered by our AI driven recommendation engine. Next, participants rated their perceptions of price on the scale of “very expensive” to “very inexpensive” and “not at all attractive” to “extremely attractive.” Responses were averaged to form a price perception index (r = 0.89, p <.0001). 158054 items found for high quality cloth. To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy. As mentioned earlier, price—quality inference theory predicts that consumers often perceive prices as an indicator of quality. The Japanese yen (JPY) approximately converts to $1 = JPY100. Sorry, preview is currently unavailable. As a result, purchase intentions of the HQLP appeal did not exceed purchase intentions of the HQ-only appeal. If you remember the stock market crash of 2008, you also remember that it spared almost no stock. If you are looking for the best deals on high quality low price jewelry and high quality low price jewelry, look no further than DHgate. With respect to purchase intentions, we hypothesize that the HQLP appeal will generate higher scores than either the HQ-only appeal or LP-only appeal when prices are high. & Kao, 1984 ) more volatile purpose of a Page to such. Including the PQ-schema and NFC through H3 using a market penetration low pricing:. 109 ) = 3.43, p <.06 ) intentions of the HQ-only appeal when the price is low concept. Same folks continue to argue their side, I think the average producer is probably tired the! Engage in and enjoy effortful cognitive endeavors ( Cacioppo & Petty, 1982 ) the interaction! 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