Price-quality heuristic correlation with rates of product consumption

Abstract

Access to this document was granted through an Emerald subscription provided by emeraldsrm:198285 [] For AuthorsIf you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to explore the manner in which the rate of product consumption contributes to the formation and strengthening of the price-quality heuristic. Design/methodology/approach -The research included a literature review with a series of tests across a sequence of blind and sighted tasting experiments involving 278 subjects assessing seven differently priced products of orange juice, coffee and wine. Findings -The paper found evidence that consumption rates do affect the way consumers respond to price information and that sight-based "System 1" judgement errors accrue and increase progressively with consumption. This relationship was observed to be stronger in sight-based product assessments for consumption of four or more units per week compared to those consuming one unit per week. For blind-based product assessments, an inverse relationship between price affect and consumption was observed, with affect reported to be stronger for minimal rates of consumption. Originality/value -The observation of sight-based and blind-based affect relationships which are dependent on the levels of product consumption appears to be an interesting advancement in consumer behaviour research. This provides support for a dual structure of rationality operated by an interconnection between "System 1" sight-based associations and "System 2" blind-based ponderous thinking. The paper further provides support for Kahneman's "conflation of intuition" as classically conditioned memory.

Price preferences reveal asymmetric price effect—A preliminary study

“…More recent studies have found evidence of the manifestation of price affect. Priilaid and Hall (2016) found that price affect strengthens across increasing rates of product consumption, whereas others have observed that this increases with levels of consumer expertise and experience (Priilaid, Sevenoaks, Aitken, & Chisholm, 2013;Priilaid & van Rensburg, 2016). Both studies suggest that the way in which individuals respond to a product when consumed in sighted tasting experiments will depend on the price of the product.…”

Factors influencing wine ratings in an online wine community: The case of Trentino–Alto Adige

“…Therefore, a dynamic analysis of prices as consumer ratings change is not possible. Moreover, wine prices and quality perception are closely connected (Priilaid and Hall, 2016), and Vivino users usually know the price when rating a wine. Figure 3 supports this relationship, showing how the average consumer rating increases as more expensive wines are considered.…”

Mixed Research Method of Organic Food Preferences Among Generation Y Consumers

“…Despite the generally perceived meaning, that products labelled by quality marks are generally accepted to be of higher quality, the findings of disorientation among all the labels and distrust of brands has been recognised among generation Y customers. Together with massive brands expansion comes also the ignorance of labels (Heerwagen, et al 2015, Altintzoglou, Heide, 2016, Priilaid, Hall, 2016, Grunert, Aachmann, 2016, Velčovská, Hadro, 2018. The data of organic food consumption conducted on previous different generations might not be generalized also to generation Y due to their unique consumption behavior and preferences (Khan, Mohsin, 2017, Macready, at al.…”