Fortune or Prestige? The effects of content price on sales and customer satisfaction

Live Streaming Use and International Seller Sales Performance: An Information Economics Perspective

“…Prior studies have also examined how product price influences perceived product quality (Brucks, Zeithaml, and Naylor 2000; Zhou, Su, and Bao 2002), consumer purchase intentions (Mazumdar, Raj, and Sinha 2005; Samper and Schwartz 2013), and sales performance (Jang and Chung 2021; Yang et al 2022). These studies have generated mixed findings and indicate that, under conditions of imperfect information, it is difficult for consumers to draw inferences about products and their attributes (Samper and Schwartz 2013).…”

“…The price of a product is an important and valued product characteristic. Expensive products are typically characterized by high levels of functional benefits, which thus increases the possibility of an incorrect assessment and entails greater purchase uncertainty for consumers (Yang et al 2022). Consumers’ beliefs about price–quality relationships may not be positive when other information is less readily available (Rao 2005; Zhou, Su, and Bao 2002).…”

“…Second, a higher price imposes a greater monetary burden on consumers (Yang et al 2022). When consumers perceive expensive products as superior in quality to others, they are willing to pay higher prices.…”

“…Information sender characteristics (i.e., sellers’ or products’ characteristics) directly influence the available information for consumers to evaluate product quality and thus affect information asymmetry (Connelly et al 2011; Kleinert et al 2022). Prior marketing literature indicates that product price and branding are important indicators for consumers to evaluate product quality and make purchase decisions (Erdem, Swait, and Valenzuela 2006; Saab and Botelho 2020; Yang et al 2022). We extend this idea to the international marketing context and consider these two factors as the important product characteristics.…”