• Title/Summary/Keyword: price-quality

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The Comparative Study on Price and Objective Quality of Apparel Products between Korea and United States - Focused on 1990's - (한국과 미국 패션제품의 가격와 객관적 품질에 관한 비교연구 -1990년대를 중심으로-)

  • 백수경;황선진
    • Journal of the Korean Society of Clothing and Textiles
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    • v.26 no.3_4
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    • pp.527-538
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    • 2002
  • Although importance of the price and objective quality relationships, very few studies have investigated the relationship related to apparel products. The purpose of this study were to examine 1990's the relationship between price and objective apparel products quality in the Korea Market and the United States market. Data sources in this study consisted of consumer magazines which were published by nonprofit organizations(1990 ∼1999) : Consumer Times(Korea), and Consumer Reports(U.S.A). The results showed that the correlations between price and objective apparel products quality were very weak positive and highly dependent upon the specific apparel product categories. Therefore, price was not a reliable measure of apparel products quality in the two countries market places. This study will help the consumer understand the relationship between price cues and apparel product objective quality and provide additional information to enhance purchase decision making.

The Influence of Price Sensitivity, Bundle Discount Type and Price Level of Male Cosmetics on Quality Perception (가격민감도와 번들할인 유형, 남성화장품의 가격수준이 품질지각에 미치는 영향)

  • Kim, Keun Jung;Hwang, Sun Jun
    • Journal of the Korean Society of Costume
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    • v.66 no.2
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    • pp.1-14
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    • 2016
  • This study was intended to investigate the influences that consumer's price sensitivity, bundle discount type, and price level of the male cosmetics have on consumer attitude. The design of this research was comprised of $2{\times}2{\times}2$ mixed design studies. The first element was high price sensitivity vs. low sensitivity, the second element was the bundle discount type (mixed leader vs. mixed-joint), and the third element was the price level of male cosmetics (high-price brand vs. low-price brand). The results of this study showed that price sensitivity, bundle discount type and price level of male cosmetic had a statistically significant interaction effect on the consumer's quality perception. The quality perception of low-cost brands for high price sensitivity/mixed-joint bundle group was low. The quality perception of low-cost brands for mixed-leader bundled groups did not change significantly even when the price sensitivity became higher. However, it can be seen as the same result that the overall value is higher when suggested the price information in Mixed-leader bundle than Mixed-joint bundle. In particular, this study suggests that price information should be presented in mixed-leader bundles for high price sensitivity and low cast brands.

The Potential Impact of Service Quality Uncertainty and Retail Pricing Strategies on Consumer Purchase Intention

  • Nguyen, Dieu Hoa;Jeong, Euihyeon;Chung, Jaekwon
    • Journal of Distribution Science
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    • v.16 no.12
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    • pp.13-21
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    • 2018
  • Purpose - Because it is not possible to assess the quality of service products before experiencing them, one feature of a service product is quality uncertainty; hence consumers may react sensitively to pricing. It is necessary to investigate how different pricing strategies affect consumer purchase intention depending on the level of service quality uncertainty. Research design, data, and methodology - The authors have investigated the potential impact of the level of service quality uncertainty, price discount rate and presentation method on consumer purchase intention. A play was selected as an experimental stimulus, and Vietnamese consumers were surveyed to verify the hypotheses. Results - When uncertainty regarding service quality is low, consumer purchase intention is higher when the price discount rate is high or when the price is low. When uncertainty regarding service quality is high, if the normal price, discount rate, and discounted price are presented simultaneously, consumer purchase intention is higher when the price discount rate is low, but when only the discounted price is presented, purchase intention is higher when the price discount rate is high. Conclusions - The results of this study can provide valuable practical implications for pricing for service products with quality uncertainty.

Research on Factors that Affect the Price Acceptability of Fashion Products -Focus on Bag, Shoes, and Jacket- (패션상품의 가격수용성에 영향을 미치는 변인연구 -가방, 구두, 자켓을 중심으로-)

  • Yoh, Eunah
    • Journal of the Korean Society of Clothing and Textiles
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    • v.38 no.2
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    • pp.266-276
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    • 2014
  • Price acceptability has become an important issue in the current fashion market. This study explored diverse factors that affect price acceptability (level of acceptable price and range of acceptable price). Stimuli photos of fashion products (i.e., bag, shoes, and jacket) were developed and used for online experiments with 3,000 female consumers. Important results included factors that affected the price acceptability of fashion products were price-quality relation, price concern, and product attribute perception. The results showed that female consumers depended more on price-quality relations, more positively perceived product attributes, and were less sensitive to price; in addition, they tended to have a higher level of acceptable price as well as a wider range of acceptable price for fashion products. These results were consistent across all experiments with different fashion items (i.e., bag, shoes, and jacket). Based on the results, factors that influence the price acceptability were revealed. Marketing practitioners need to more actively consider implying advertising strategies that emphasize the advancement of product attributes such as quality for highpriced products.

The Influence of Service Quality, Product Quality, Price on Store Patronage for Apparel Stores (의류점포의 서비스품질, 제품품질과 가격이 점포애고에 미치는 영향)

  • 김지연;이은영
    • Journal of the Korean Society of Clothing and Textiles
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    • v.28 no.1
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    • pp.12-21
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    • 2004
  • The purposes of this research were (1) to identify service quality and apparel quality in apparel stores, (2) to examine the influence of service quality, product quality and price on customer satisfaction, (3) to examine the influence of service quality, product quality, price and customer satisfaction on repurchase intention that is important feature of store patronage. The data was collected from 435 female students, career women, and house wives using questionnaire and analyzed by frequency analysis, factor analysis, reliability analysis and regression. The results of this research were as follows: (1) Service quality in apparel stores was divided into six factors: facilities and policy/ salesperson VMD/ after service/ impression and atmosphere/ promotion. (2) Product quality was divided into four factors: objective feature/ expressive feature/ wearing sensation/ fitness. (3) Service quality, product quality, price influenced customer satisfaction. (4) Product quality, price and customer satisfaction influenced repurchase intention directly, but service quality influenced repurchase intention indirectly. (5) Service quality factors that influenced customer to have repurchase intention were facilities and policy, salesperson, and VMD. (6) Product quality factors that influenced customer to have repurchase intention were objective feature and wearing sensation.

Does Price Promotion Hurt Products' Perceived Quality? The Role of Attribute Alignability

  • CHAE, Myoung-Jin
    • The Journal of Economics, Marketing and Management
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    • v.8 no.3
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    • pp.9-21
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    • 2020
  • Purpose: Previous literature shows that a price promotion serves as a negative cue of product quality especially when consumers have no additional information about the product's other attributes. In this research, we explore how the effect of price promotions on consumers' perceptions of product quality changes depending on their ability to compare promoted product attributes with competitive products' attributes. Research design, data and methodology: Specifically, we use a series of scenario-based lab experiments using different types of products and explore if attribute alignability among competing products in a consumer's choice set influences consumers' ability to compare the product attributes and perceived quality. Results: Our study findings show that high attribute alignability among products makes consumers easier to compare the product attributes and thereby focus more on non-price information than price information. We also show that attribute alignability serves as a moderator and decreases perceived quality when the promotion level is higher. Therefore, the attribute alignability weakens the negative impact of a price promotion on consumers' perceived product quality. Conclusions: Our study findings provide new insights on how to implement price promotion strategies while keeping products' perceived quality, by considering the product's relationships with competing products in a choice set.

The Effect of Price Promotional Information about Brand on Consumer's Quality Perception: Conditioning on Pretrial Brand (품패개격촉소신식대소비자질량인지적영향(品牌价格促销信息对消费者质量认知的影响))

  • Lee, Min-Hoon;Lim, Hang-Seop
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.3
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    • pp.17-27
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    • 2009
  • Price promotion typically reduces the price for a given quantity or increases the quantity available at the same price, thereby enhancing value and creating an economic incentive to purchase. It often is used to encourage product or service trial among nonusers of products or services. Thus, it is important to understand the effects of price promotions on quality perception made by consumer who do not have prior experience with the promoted brand. However, if consumers associate a price promotion itself with inferior brand quality, the promotion may not achieve the sales increase the economic incentives otherwise might have produced. More specifically, low qualitative perception through price promotion will undercut the economic and psychological incentives and reduce the likelihood of purchase. Thus, it is important for marketers to understand how price promotional informations about a brand have impact on consumer's unfavorable quality perception of the brand. Previous literatures on the effects of price promotions on quality perception reveal inconsistent explanations. Some focused on the unfavorable effect of price promotion on consumer's perception. But others showed that price promotions didn't raise unfavorable perception on the brand. Prior researches found these inconsistent results related to the timing of the price promotion's exposure and quality evaluation relative to trial. And, whether the consumer has been experienced with the product promotions in the past or not may moderate the effects. A few studies considered differences among product categories as fundamental factors. The purpose of this research is to investigate the effect of price promotional informations on consumer's unfavorable quality perception under the different conditions. The author controlled the timing of the promotional exposure and varied past promotional patterns and information presenting patterns. Unlike previous researches, the author examined the effects of price promotions setting limit to pretrial situation by controlling potentially moderating effects of prior personal experience with the brand. This manipulations enable to resolve possible controversies in relation to this issue. And this manipulation is meaningful for the work sector. Price promotion is not only used to target existing consumers but also to encourage product or service trial among nonusers of products or services. Thus, it is important for marketers to understand how price promotional informations about a brand have impact on consumer's unfavorable quality perception of the brand. If consumers associate a price promotion itself with inferior quality about unused brand, the promotion may not achieve the sales increase the economic incentives otherwise might have produced. In addition, if the price promotion ends, the consumer that have purchased that certain brand will likely to display sharply decreased repurchasing behavior. Through a literature review, hypothesis 1 was set as follows to investigate the adjustive effect of past price promotion on quality perception made by consumers; The influence that price promotion of unused brand have on quality perception made by consumers will be adjusted by past price promotion activity of the brand. In other words, a price promotion of an unused brand that have not done a price promotion in the past will have a unfavorable effect on quality perception made by consumer. Hypothesis 2-1 was set as follows : When an unused brand undertakes price promotion for the first time, the information presenting pattern of price promotion will have an effect on the consumer's attribution for the cause of the price promotion. Hypothesis 2-2 was set as follows : The more consumer dispositionally attribute the cause of price promotion, the more unfavorable the quality perception made by consumer will be. Through test 1, the subjects were given a brief explanation of the product and the brand before they were provided with a $2{\times}2$ factorial design that has 4 patterns of price promotion (presence or absence of past price promotion * presence or absence of current price promotion) and the explanation describing the price promotion pattern of each cell. Then the perceived quality of imaginary brand WAVEX was evaluated in the scale of 7. The reason tennis racket was chosen is because the selected product group must have had almost no past price promotions to eliminate the influence of average frequency of promotion on the value of price promotional information as Raghubir and Corfman (1999) pointed out. Test 2 was also carried out on students of the same management faculty of test 1 with tennis racket as the product group. As with test 1, subjects with average familiarity for the product group and low familiarity for the brand was selected. Each subjects were assigned to one of the two cells representing two different information presenting patterns of price promotion of WAVEX (case where the reason behind price promotion was provided/case where the reason behind price promotion was not provided). Subjects looked at each promotional information before evaluating the perceived quality of the brand WAVEX in the scale of 7. The effect of price promotion for unfamiliar pretrial brand on consumer's perceived quality was proved to be moderated with the presence or absence of past price promotion. The consistency with past promotional behavior is important variable that makes unfavorable effect on brand evaluations get worse. If the price promotion for the brand has never been carried out before, price promotion activity may have more unfavorable effects on consumer's quality perception. Second, when the price promotion of unfamiliar pretrial brand was executed for the first time, presenting method of informations has impact on consumer's attribution for the cause of firm's promotion. And the unfavorable effect of quality perception is higher when the consumer does dispositional attribution comparing with situational attribution. Unlike the previous studies where the main focus was the absence or presence of favorable or unfavorable motivation from situational/dispositional attribution, the focus of this study was exaus ing the fact that a situational attribution can be inferred even if the consumer employs a dispositional attribution on the price promotional behavior, if the company provides a persuasive reason. Such approach, in academic perspectih sis a large significance in that it explained the anchoring and adjng ch approcedures by applying it to a non-mathematical problem unlike the previous studies where it wis ionaly explained by applying it to a mathematical problem. In other wordn, there is a highrspedency tmatispositionally attribute other's behaviors according to the fuedach aal attribution errors and when this is applied to the situation of price promotions, we can infer that consumers are likely tmatispositionally attribute the company's price promotion behaviors. Ha ever, even ueder these circumstances, the company can adjng the consumer's anchoring tmareduce the po wibiliute thdispositional attribution. Furthermore, unlike majority of previous researches on short/long-term effects of price promotion that only considered the effect of price promotions on consumer's purchasing behaviors, this research measured the effect on perceived quality, one of man elements that affects the purchasing behavior of consumers. These results carry useful implications for the work sector. A guideline of effectively providing promotional informations for a new brand can be suggested through the outcomes of this research. If the brand is to avoid false implications such as inferior quality while implementing a price promotion strategy, it must provide a clear and acceptable reasons behind the promotion. Especially it is more important for the company with no past price promotion to provide a clear reason. An inconsistent behavior can be the cause of consumer's distrust and anxiety. This is also one of the most important factor of risk of endless price wars. Price promotions without prior notice can buy doubt from consumers not market share.

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The Effect of Price Information Cues on The Consumer's Apparel Quality Evaluations (의류제품의 품질평가에 있어서 가격단서의 영향)

  • 최미영;이은영
    • Journal of the Korean Society of Clothing and Textiles
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    • v.22 no.8
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    • pp.1099-1110
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    • 1998
  • The perceived quality is a concept considered from the consumer's perspective. So it is differ from the objective determination of product quality. Thus the consumer perception of quality is a subjective judgement of an individual and an overall feeling on the characteristics which includes the product's reliability, performance and so on. In terms of product perception, consumers utilize the product cues in evaluating the product's quality before the purchase and the cues reflecting the quality can be classifisied into intrinsic and extrinsic ones. When the quality perception is limited to the purchase situation, purchase decision dependent on surrogate indicators such as price, are inclined to increase due to the lack of information. Therefore in this study the perceived quality of apparel is controled to the purchase situation in order to examine the consumer's reaction to the price cues and for the convenience of the exploratory investigation. As a result of the empirical study, consumers show differences in quality and value perceptions to the product with the same price depending on the perception whether the price is high or low. The apparel quality evaluation process goes through the steps of "product attributes - perceived quality - perceived value - purchase intention".

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Price Competition in Horizontal and Vertical Differentiation : Focusing on the WiBro and HSDPA (수직적.수평적 차별화 시장에서의 서비스 요금전략 : 와이브로와 HSDPA 서비스를 중심으로)

  • Kim, Dow-Han
    • Korean Management Science Review
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    • v.26 no.3
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    • pp.67-78
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    • 2009
  • In this paper, I analyze the mobile broadband services market characterized by vertical and horizontal differentiation. Vertical differentiation as service quality differentiation is based on the transmission speed of mobile internet service and horizontal differentiation as spatial differentiation is based on the service coverage. Theoretical explanations for the competitive price policy have been developed in the game context of WiBro which represent the high quality within the limited service coverage and HSDPA which represent relatively low quality with nation-wide service. When the WiBro has a mobile broadband service quality advantage and the difference in quality is sufficiently low, the price of WiBro with limited service coverage is relatively lower than that of HSDPA. This occurs because the advantage of WiBro's vertical service differentiation is offset by the disadvantage of horizontal differentiation. The difference in the quality of mobile internet service, however, is not too high, the price of WiBro is relatively higher than that of HSDPA. Moreover, when the service quality of WiBro is sufficiently high, the low quality HSDPA service faces no demand.

Market Segmentation With Price-Dependent Quality Evaluation in Denim Jeans Market ; Based on Conjoin analysis and mixture model (청바지제품 세분시장 내 가격-품질 평가집단 추출에 관한 연구: 결합분석과 mixture model를 이용하여)

  • 곽영식;이진화
    • Journal of the Korean Society of Clothing and Textiles
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    • v.26 no.11
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    • pp.1605-1614
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    • 2002
  • The purpose of this study was to identify the consumers who use the level of price as the indicator of the product quality. In order to implement the purpose of this study, Jeans market had been segmented by the mixture regression model, and price response function was calibrated for each segment. Based on the types of price response function, segments were allocated into one of two groups; the group using the level of price as the quality indicator or the group not using the level of price as that. Then, characteristics of both groups were compared in terms of product attributes and demographic variables. Data were co]looted from the sample of the 23o undergraduate and graduate students in Seoul. For the data analysis, mixture regression model, conjoint analysis, and t-test were used. As a result, jeans market was divided into 5 segments. Segment 1,2,3 were allocated into the group not using the level of price as the quality indicator while segment 4,5 were done into the other group. Significant differences existed between two groups in product attributes, not in demographic variables. Mixture model and conjoint analysis were proved to be an effective set of tools in market segmentation.