Frugality: A cross‐national moderator of the price‐quality relationship

Abstract

Despite numerous studies of the effect of price information on perceived quality, the existence of a generalized price‐quality relationship is still uncertain. Methodological differences among studies make comparisons difficult. Additionally, individual difference variables have been largely ignored in the extant research. The current study investigated and found a significant mediating effect of a personal value—frugality—on the price‐perceived quality relationship, as well as on the relationship between price cues and purchasing estimates. The nature of the moderating role of frugality on imputed quality was found to be similar for consumers of two nationalities. Thus, the usefulness of employing frugality as a cross‐national segmentation variable is suggested.

Hyperopia and frugality: Different motivational drivers and yet similar effects on consumer spending

“…Replicating past research, we find that frugality lowers overall monthly spending, and spending on consumer goods that are higher priced in favor of goods that are lower priced (Pettit et al, 1985). However, we also extend past research by showing that hyperopia likewise lowers overall monthly spending and spending on consumer goods that are higher priced.…”

“…Hyperopic consumers also report lower monthly spending, and they avoid purchasing routine consumer goods that are higher priced in favor of lower priced substitutes. Such spending patterns have been observed among frugal consumers (Lastovicka et al, 1999;Pettit et al, 1985;Rose et al, 2010), but we are the first to observe them among hyperopic consumers. We also directly compare the distinct motivational underpinnings that differentiate hyperopia from frugality.…”

“…According to Lastovicka et al (1999), frugal consumers are disciplined in their spending, and resourceful in using and reusing their possessions. Also, frugal consumers buy fewer discretionary products (Rose et al, 2010), and they buy less costly consumer goods that offer good value over more costly consumer goods that offer poorer value (Pettit et al, 1985).…”

“…Evidence suggests the negative effect of price on purchase is even greater among frugal consumers (Rose et al, 2010). In addition, frugal consumers tend to use resources more carefully (DeYoung, 1986) and are known to be price conscious (Pettit et al, 1985;Lastovicka et al, 1999). Thus their purchases of consumer goods that are higher priced should be lower, relative to consumers who are less frugal.…”

“…Hyperopia indicates the extent to which consumers have an aversion to indulgences (Haws and Poynor, 2008), whereas frugality indicates restraint and resourcefulness in product acquisition and consumption (Lastovicka et al, 1999). Frugal consumers tend to constrain their purchases overall, and also to avoid purchasing consumer goods that are higher priced in favor of lower priced options (Lastovicka et al, 1999;Pettit et al, 1985). Frugal consumers also reduce their purchases of discretionary products if the prices get too high (Rose et al, 2010).…”