Research Insights 9.1 The Price–Perceived Quality Relationship

Price and Customer Value Decisions

   Source: Völckner, F. and Hofmann, J. (2007), ‘The price-perceived quality relationship: a meta-analytic review and assessment of its determinants’, Marketing Letters, 18, 3, 181–96.

Abstract: The authors conducted a meta-analysis of study results on the price-perceived quality relationship published from 1989 to 2006. The findings show that the price effect on perceived quality has decreased. Furthermore, the price–quality relationship is stronger in studies that use a within-subjects design, investigate higher priced products, and use samples from European countries but weaker for services, durable goods, and respondents who are familiar with the product. A striking null result indicates that the number of cues does not affect the price-perceived quality relationship significantly.

Insight: This article uses a meta-analytic approach to evaluate various studies performed between 1989 and 2006 to provide evidence that there is an increasingly weakening relationship between price and perceived quality.