The Moderating Effect of Prior Knowledge on Cue Utilization in Product Evaluations

Rao, Akshay R.; Monroe, Kent B.

doi:10.1086/209162

Cited by 947 publications

(687 citation statements)

References 18 publications

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“…Specifically, those who are knowledgeable should be less willing to pay prices that do not reflect the quality of the product compared to those who lack knowledge (Rao and Sieben, 1992). Rao and Monroe (1988) found that product knowledge moderated the effects of price on consumers' perceptions of quality-price had a greater effect for the low knowledge group as compared to the high knowledge group. Similarly, Biswas and Blair (1991) found that reference price advertisements for an unfamiliar brand affected internal refer ence price to a greater extent than they did for a familiar brand.…”

Section: Moderating Effects Of Consumer Knowledge and Prior Ownershipmentioning

confidence: 91%

“…Finally, past pricing research has suggested that prior knowledge and experience with the brand or product category moderates the effect of price on consumer evaluations (e.g.. Rao and Monroe, 1988). Consequently, an exploratory issue that will be addressed in this research is examining the robustness and generalizability of the proposed model across two related boundary conditions (i.e., knowledge and ownership).…”

Section: Introductionmentioning

confidence: 97%

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The effect of store name, brand name and price discounts on consumers' evaluations and purchase intentions

Grewal

Krishnan

Baker

et al. 1998

Journal of Retailing

1,021

619

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Section: Moderating Effects Of Consumer Knowledge and Prior Ownershipmentioning

confidence: 91%

Section: Introductionmentioning

confidence: 97%

The effect of store name, brand name and price discounts on consumers' evaluations and purchase intentions

Grewal

Krishnan

Baker

et al. 1998

Journal of Retailing

1,021

619

View full text Add to dashboard Cite

show abstract

“…More generally, we suggest that research consider the interaction effect of labels with other signals of quality, such as warranty offers (Boulding and Kirmani 1993;Cooper and Ross 1985;Grossman 1981), advertising expenditures (Kirmani 1997;Kirmani and Wright 1989;Nelson 1974), store reputation (Rao and Monroe 1988), high market share (Hellofs and Jacobson 1999), or other labels, such as a possible CO 2 footprint label. All these cues are likely to moderate the impact of the organic label.…”

Section: Theoretical Implications and Limitationsmentioning

confidence: 99%

Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects

2011

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International audienceAn organic label offers a market signal for producers of organic food products. In Western economies, the label has gained high recognition, but organic food still represents a small part of total food consumption, which raises questions about the label's efficacy. By considering organic labels as a signal of quality for consumers, this article studies how this signal interacts with brand signals when both are visible to consumers, applying a cobranding framework. This research examines the moderating effect of the brand on organic label effects. In a 2 × 2 experimental design using real consumers (N = 122) in a shopping context, it found that, depending on brand equity, the marginal effect of organic labelling information in terms of perceived product quality varies. In particular, when brand equity is high (low), the organic label appears less (more) effective. However, regardless of the brand equity level, an organic label makes the environmentally friendly attribute salient, which has a positive impact on perceived quality. Pertinent implications for marketing and public policy are discussed

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“…In information-rich shelf-front environments, there is evidence that consumers activate certain heuristic short-cuts that may save time evaluating new information (Cunha & Shulman, 2010). One of the most common short cuts is the perceived price-quality heuristic, a construct well entrenched within the literature (Dodds & Monroe (1985), Gerstner (1985), Rao and Monroe (1988), Rao and Sieben (1992)). …”

Section: Literature Reviewmentioning

confidence: 99%

How price moderates assessments of coffee quality across profiles of gender and experience

Priilaid

Horwitz

2016

SAJBM

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Proceeding from studies that identify the extrinsic price cue as a mediator between a product's perceived and intrinsic merit, we report on a blind-versus-sighted coffee tasting experiment conducted to determine the impact of the price-cue across coffee-user categories of gender and relative experience. Seven instant coffees were tasted by 100 subjects producing 700 paired blind and sighted tastings. Aggregating the data, OLS regression models were run to estimate price-effects across discrete and overlapping bands of gender and self-confessed expertise (non-expert and expert). Our analysis reveals the extent to which price-effects demean a coffee's intrinsic merit during sighted tastings, with experienced male coffee drinkers most especially susceptible to price persuasion, and less experienced female drinkers the least. Thus our paper introduces a cheap and affective means of testing for such cue-effects. Neuromarketing styles of testing are usually cumbersome, expensive and difficult to scale. The method show-cased here offers a meaningful alternative. These findings uphold the view that the price cue remains a critical tool in the marketing of coffee; most notably because of its potential cost-free contribution to the ramping of experienced pleasure without any augmentation of quality. Further implications are explored.

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The Moderating Effect of Prior Knowledge on Cue Utilization in Product Evaluations

Cited by 947 publications

References 18 publications

The effect of store name, brand name and price discounts on consumers' evaluations and purchase intentions

The effect of store name, brand name and price discounts on consumers' evaluations and purchase intentions

Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects

How price moderates assessments of coffee quality across profiles of gender and experience

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