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EFFECTIVENESS OF CUSTOMER INFORMATION SOURCES ON PRICE SIGNALING OF QUALITY PERCEPTION

Year 2013, Volume: 5 Issue: 1, 339 - 346, 01.06.2013

Abstract

Although, incoming role of price have leaded to more researchers attention than other factors of mix marketing, price has also other roles in marketing context. Price signals the quality of goods. As one approach, higher price shows higher quality perception. Nevertheless, many factors such as brand, advertisement, country of origin, story name and etc affect on this relationship. Beside of these factors, information level of customers influences on the relationships of price and quality perception too. Some researches show that informed customers, less rely on price. Many researches has been worked on this area but none of them has adverted to the customer information sources. In this article is shown the effectiveness of customer information sources: 1. B2C relationships 2. C2C relationships. This article has been examined on Iranian Cell- Phone Market with 350 surveys and analyzed by SPSS. This model helps marketers being aware about effectiveness of each references and so allocate their resources more efficiency in order to proving their qualities and additionally reduce the effectiveness of price on quality perception

References

  • Schhiffman J.B and Kanuk Lealie Lazar (1997) Consumer Behavior published by
  • Prentice Hall Sixth edition .446 Adriani, Fabrizio and Deidda, Luca G. (2010), "Competition and the Signaling role of prices," International Journal of Industrial Organization, Vol. 29, No. 4, pp. 412-425.
  • Begwell, Kyle and Riordan, Micheal H. (1991), "High and Declining Prices signal
  • Product Quality," The American Economic Review, Vol. 81, No. 1, pp. 224-239. Bickart, Barbara and Schindler, Robert M. (2001), "Internet forums as influential sources of consumer information," Journal of Interactive Marketing, Vol. 15, No. , pp. 31-40.
  • Brucks, Merrie and Zeithaml, Valarie A. and Naylor, Gillian (2007), "Price and Brand Name As Indicators of Quality Dimensions for Consumer Durables,"
  • Journal of the Academy of Marketing Science, Vol. 28, No. 3, pp. 359-374. Ding, Min and Ross Jr., William T. and Rao, Vithala R. (2010), "Price as an
  • Indicator of Quality: Implications for Utility and Demand Functions," Vol. 86. No. 1, pp. 69-84. Fishman, Arthur and Simhon, Avi (2000), "Investment n quality under asymmetric information with endogenously informed consumers," Economics Letters, Vol. 68, No. 3, pp. 327-332.
  • Fluet, Claude and Garella, Paolo G. (2002), "Advertising and prices as signals of quality in a regime of price rivalry," International Journal of Industrial
  • Organization, vol. 20, No. 7, pp. 907-930. Gabor, Andre and Granger, W. J (1966). "Price as an indicator of Quality: Report on an Enquiry," Economica, New Series, Vol. 33, No. 129, pp. 43-70.
  • Galeotti, Andrea (2010), "Talking, Searching, And Pricing," International
  • Economic Review, Vol. 51, No. 4, pp. 1159-1174.
  • Gardner, David M. (1971). "Is there a Generalized Price-Quality Relationship,"
  • Journal of Marketing Research, Vol. 8. No. 2, pp. 241-243. Gerstner, Eitan (1985). “Do Higher Prices Signal Higher Quality?” Journal of
  • Marketing Research, 22(2), pp.209-15. Lichtenstein, Donald R and Burton, Scot (1989). “The Relationship Between
  • Perceived and Objective Price- Quality,” Journal of Marketing Research, Vol.26, No.4, pp. 429-43. Leavitt, Harold J (1954). “A Note on Some Experimental Findings about the Meaning of Price,” Journal of Business, Vol.27, No.2, pp. 205-10.
  • Maute, Manfred F. and Forrester Jr., William R. (1991), "The effect of attribute qualities on consumer decision making: A causal model of external information search," Journal of Economic Psychology, Vol.12, No. 4, pp. 643-666.
  • Mitra, Debanjan and Fay, Scott (2010), "Managing Service Expectations in
  • Online Markets: A Signaling Theory of E-tailer Pricing and Emprical Tests," Vol. , No. 2, pp. 184-199. Miyazaki, Anthony and Grewal, Dhruv and Goodstein, Ronald C. (2005), "The
  • Effect of Muliple Extrinsic Cues on Quality Perceptions: A Matter of Consistency," Journal of Consumer Research, Vol. 32, No. 1, pp. 146-153. Monroe, Kent B. and Dodds, William B. (1988). "A Research Program for
  • Establishing the Validity of the Price-Quality Relationship," Journal of the Academy of Marketing Science, Vol. 16, No. 1, pp. 121-168. Scitovsky, Tibor (1945). “Some Consequences of the Habit of Judging Quality by
  • Price,” Review of Economic Studies, Vo.12, No.2, pp.100-102. Shapiro, Benson P (1973). “Price Reliance: Existence and Sources,” Journal of
  • Marketing Research, 10(3), pp.286-87. Stafford, James and Enis, Ben (1969). "The proce-Quality relationship: An
  • Extension," Journal of Marketing Research, Vol. 6, No.4, pp. 456-458. Verma, D P S and Gupta, Soma Sen (2004), "Does Higher Price Signal Better
  • Quality?," Vikalpa Journal, Vol. 29, No. 2, pp. 67-77
  • Wolinsky, Asher (1983). "Prices as Signals of Product Quality," The Review of
  • Economic Studies, Vol. 50, No. 4, pp. 647-658. Gergaud, Olivier and Livat, Florine (2007), "How Do Consumers Use Signals to
  • Assess Quality?," American Association of Wine Economists working paper 3.
Year 2013, Volume: 5 Issue: 1, 339 - 346, 01.06.2013

Abstract

References

  • Schhiffman J.B and Kanuk Lealie Lazar (1997) Consumer Behavior published by
  • Prentice Hall Sixth edition .446 Adriani, Fabrizio and Deidda, Luca G. (2010), "Competition and the Signaling role of prices," International Journal of Industrial Organization, Vol. 29, No. 4, pp. 412-425.
  • Begwell, Kyle and Riordan, Micheal H. (1991), "High and Declining Prices signal
  • Product Quality," The American Economic Review, Vol. 81, No. 1, pp. 224-239. Bickart, Barbara and Schindler, Robert M. (2001), "Internet forums as influential sources of consumer information," Journal of Interactive Marketing, Vol. 15, No. , pp. 31-40.
  • Brucks, Merrie and Zeithaml, Valarie A. and Naylor, Gillian (2007), "Price and Brand Name As Indicators of Quality Dimensions for Consumer Durables,"
  • Journal of the Academy of Marketing Science, Vol. 28, No. 3, pp. 359-374. Ding, Min and Ross Jr., William T. and Rao, Vithala R. (2010), "Price as an
  • Indicator of Quality: Implications for Utility and Demand Functions," Vol. 86. No. 1, pp. 69-84. Fishman, Arthur and Simhon, Avi (2000), "Investment n quality under asymmetric information with endogenously informed consumers," Economics Letters, Vol. 68, No. 3, pp. 327-332.
  • Fluet, Claude and Garella, Paolo G. (2002), "Advertising and prices as signals of quality in a regime of price rivalry," International Journal of Industrial
  • Organization, vol. 20, No. 7, pp. 907-930. Gabor, Andre and Granger, W. J (1966). "Price as an indicator of Quality: Report on an Enquiry," Economica, New Series, Vol. 33, No. 129, pp. 43-70.
  • Galeotti, Andrea (2010), "Talking, Searching, And Pricing," International
  • Economic Review, Vol. 51, No. 4, pp. 1159-1174.
  • Gardner, David M. (1971). "Is there a Generalized Price-Quality Relationship,"
  • Journal of Marketing Research, Vol. 8. No. 2, pp. 241-243. Gerstner, Eitan (1985). “Do Higher Prices Signal Higher Quality?” Journal of
  • Marketing Research, 22(2), pp.209-15. Lichtenstein, Donald R and Burton, Scot (1989). “The Relationship Between
  • Perceived and Objective Price- Quality,” Journal of Marketing Research, Vol.26, No.4, pp. 429-43. Leavitt, Harold J (1954). “A Note on Some Experimental Findings about the Meaning of Price,” Journal of Business, Vol.27, No.2, pp. 205-10.
  • Maute, Manfred F. and Forrester Jr., William R. (1991), "The effect of attribute qualities on consumer decision making: A causal model of external information search," Journal of Economic Psychology, Vol.12, No. 4, pp. 643-666.
  • Mitra, Debanjan and Fay, Scott (2010), "Managing Service Expectations in
  • Online Markets: A Signaling Theory of E-tailer Pricing and Emprical Tests," Vol. , No. 2, pp. 184-199. Miyazaki, Anthony and Grewal, Dhruv and Goodstein, Ronald C. (2005), "The
  • Effect of Muliple Extrinsic Cues on Quality Perceptions: A Matter of Consistency," Journal of Consumer Research, Vol. 32, No. 1, pp. 146-153. Monroe, Kent B. and Dodds, William B. (1988). "A Research Program for
  • Establishing the Validity of the Price-Quality Relationship," Journal of the Academy of Marketing Science, Vol. 16, No. 1, pp. 121-168. Scitovsky, Tibor (1945). “Some Consequences of the Habit of Judging Quality by
  • Price,” Review of Economic Studies, Vo.12, No.2, pp.100-102. Shapiro, Benson P (1973). “Price Reliance: Existence and Sources,” Journal of
  • Marketing Research, 10(3), pp.286-87. Stafford, James and Enis, Ben (1969). "The proce-Quality relationship: An
  • Extension," Journal of Marketing Research, Vol. 6, No.4, pp. 456-458. Verma, D P S and Gupta, Soma Sen (2004), "Does Higher Price Signal Better
  • Quality?," Vikalpa Journal, Vol. 29, No. 2, pp. 67-77
  • Wolinsky, Asher (1983). "Prices as Signals of Product Quality," The Review of
  • Economic Studies, Vol. 50, No. 4, pp. 647-658. Gergaud, Olivier and Livat, Florine (2007), "How Do Consumers Use Signals to
  • Assess Quality?," American Association of Wine Economists working paper 3.
There are 27 citations in total.

Details

Other ID JA74MB89DN
Journal Section Articles
Authors

Mohsen Nazari This is me

Zahra Heydarifard This is me

Publication Date June 1, 2013
Published in Issue Year 2013 Volume: 5 Issue: 1

Cite

APA Nazari, M., & Heydarifard, Z. (2013). EFFECTIVENESS OF CUSTOMER INFORMATION SOURCES ON PRICE SIGNALING OF QUALITY PERCEPTION. International Journal of Business and Management Studies, 5(1), 339-346.
AMA Nazari M, Heydarifard Z. EFFECTIVENESS OF CUSTOMER INFORMATION SOURCES ON PRICE SIGNALING OF QUALITY PERCEPTION. IJBMS. June 2013;5(1):339-346.
Chicago Nazari, Mohsen, and Zahra Heydarifard. “EFFECTIVENESS OF CUSTOMER INFORMATION SOURCES ON PRICE SIGNALING OF QUALITY PERCEPTION”. International Journal of Business and Management Studies 5, no. 1 (June 2013): 339-46.
EndNote Nazari M, Heydarifard Z (June 1, 2013) EFFECTIVENESS OF CUSTOMER INFORMATION SOURCES ON PRICE SIGNALING OF QUALITY PERCEPTION. International Journal of Business and Management Studies 5 1 339–346.
IEEE M. Nazari and Z. Heydarifard, “EFFECTIVENESS OF CUSTOMER INFORMATION SOURCES ON PRICE SIGNALING OF QUALITY PERCEPTION”, IJBMS, vol. 5, no. 1, pp. 339–346, 2013.
ISNAD Nazari, Mohsen - Heydarifard, Zahra. “EFFECTIVENESS OF CUSTOMER INFORMATION SOURCES ON PRICE SIGNALING OF QUALITY PERCEPTION”. International Journal of Business and Management Studies 5/1 (June 2013), 339-346.
JAMA Nazari M, Heydarifard Z. EFFECTIVENESS OF CUSTOMER INFORMATION SOURCES ON PRICE SIGNALING OF QUALITY PERCEPTION. IJBMS. 2013;5:339–346.
MLA Nazari, Mohsen and Zahra Heydarifard. “EFFECTIVENESS OF CUSTOMER INFORMATION SOURCES ON PRICE SIGNALING OF QUALITY PERCEPTION”. International Journal of Business and Management Studies, vol. 5, no. 1, 2013, pp. 339-46.
Vancouver Nazari M, Heydarifard Z. EFFECTIVENESS OF CUSTOMER INFORMATION SOURCES ON PRICE SIGNALING OF QUALITY PERCEPTION. IJBMS. 2013;5(1):339-46.