Price as a Signal of Product Quality: Some Experimental Evidence
نویسندگان
چکیده
منابع مشابه
Price as a signal of product quality : Some experimental evidence
We separate the budgetary and non-budgetary effects of price on demand using choice data from wine tasting experiments in which consumers tasted wines of different quality accompanied by fictitious price information. The non-budgetary effect is present and nonlinear: it is strongly positive between e 3 and e 5, and undetectable between e 5 and e 8. We find a similar nonlinear price-quality rela...
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As I discuss in this commentary, these findings are noteworthy for three reasons. First, they are novel because extant perspectives on how price–quality relationships operate do not envision the process that SCA posit. Second, they are provocative because, consistent with the opening quote attributed to Einstein, the findings suggest that perceptions can occasionally influence reality. Third, t...
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ژورنال
عنوان ژورنال: Journal of Wine Economics
سال: 2014
ISSN: 1931-4361,1931-437X
DOI: 10.1017/jwe.2014.17