Price Premium Variations as a Consequence of Buyers' Lack of Information

Datos Bibliográficos

ID7842489
AutoresAkshay R Rao (0000-0001-9783-6223), Mark Bergen, Mark E Bergen
Año1992
Volumen19
Número3
Páginas412
Fecha de publicación1992-12-01
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaJournal of Consumer Research (JOURNAL)
Identificadores de la revistaISSN: 0093-5301 • E-ISSN: 1537-5277
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.1086/209311
OpenAlexW2009401769
IdiomaEN
Citas recibidas9
Referencias citadas6

It appears that buyers sometimes knowingly pay a price that is higher than that justified by the relative quality of the product. Such a price premium is argued to be an economically rational attempt by quality-conscious buyers to ensure that the seller does not provide a lower than promised level of quality for experience products. Conversely, for search products, price premiums are argued to be the consequence of lack of search by buyers who are less quality conscious. Results from a survey conducted in an organizational buying setting indicate that buyers' tendency to pay a price premium for experience products increases with an increase in their quality consciousness, while for search products this tendency decreases with an increase in their quality consciousness. The implications of this finding are discussed; further analysis leads to additional speculation regarding some other mechanisms that buyers may use to assure product quality

Business · Economics · Library science · Auction Theory and Applications · Computer Science · Consumer Market Behavior and Pricing · Economic theories and models · History · Marketing