Owing to tremendous interest retailers and manufacturers have in the role of contextual appeals, a substantial body of empirical evidence has been accumulated. All items were measured on a seven-point rating scale from one to seven. Pillow Block Bearing, Bearings, Housing manufacturer / supplier in China, offering High Quality with Low Price Pillow Blcok Bearing Flange Housing, High Temperature Chain Grease, China Manufacturer Multi Purpose Lithium Based Lubricant Grease MP3 Nlgi3 Drop Point 120~200 and so on. Study 1 investigates whether consumers' quality perceptions, price perceptions, and purchase intentions are influenced by this appeal. Then, we present our hypotheses and describe our two studies and results. If a particular product is not in high demand, the price could go down to entice people to buy it. Do consumers really perceive that the advertised products have the high quality advertised? Discounts have been found to lead to lower quality perceptions (Raghubir & Corfman, 1999); however, providing a message assuring product quality helps counter this negative perception (Darke & Chung, 2005). Accordingly, the HQLP appeal generated higher quality perceptions in the case of low price and generated more favorable price perceptions and purchase intentions in the case of high price. Similarly, consumers first attracted by the “low price” cue, the “high quality” cue may likewise evoke cognitive dissonance that hinders acceptance. Although we selected a product category after carefully considering the participants of our studies, the fact remains that shopping experiences, income levels, and interests differ. Finally, Suri and Monroe (2001) showed that the acceptable price range was wider for high NFC consumers than for low NFC consumers because high NFC consumers use price–quality inference and low NFC consumers consider monetary sacrifice more than product quality. There results indicate that H4a was supported for quality perception and purchase intention. However, it still has some abilities to raise favorable price perceptions and purchase intentions. As expected, the effect differs depending on the price level. After reviewing the ad, participants were asked to assess several measures regarding the featured product. Thus, PQ-schema and NFC hinder acceptance of the HQLP appeal. A laptop computer was selected as the experimental stimulus. Some of the reasons why small eCommerce businesses may benefit from using a market penetration low pricing strategy: Increased Sales Volume. Wheatley and Chiu (1977) compared three extrinsic cues (price, store prestige, and carpet color) and found that price had the strongest effect, followed by store prestige, then color. “Most people simultaneously believe that low prices mean good value, and that low prices mean low quality,” Steve Posavac, a professor of marketing at … The low price condition generated lower perceptions of quality, more favorable perceptions of price, and higher purchase intentions than the high price condition. The HQLP appeal was favored more by weak PQ-schema group than strong PQ-schema group regardless of price level (t(19) = 2.5, p <.05 for moderately high price; t(20) = 4.18, p <.005 for low price). Subsequently, when firms individually implement the HQ-only appeal, the quality claims are likely to be accepted more easily as no other information hinders their acceptance. The perceptions will be as favorable as the HQ-only appeal when the price is low. The interaction was significant for strong PQ-schema group (F(2, 50) = 11.77, p <.0001), but not for weak PQ-schema group (F(2, 59) = 1.07, n.s.). The Japanese yen (JPY) approximately converts to $1 = JPY100. 3099067 Cited by lists all citing articles based on Crossref citations.Articles with the Crossref icon will open in a new tab. This research has sought to address this void and specifically focused on the commonly-used HQLP appeal. High NFC consumers intrinsically enjoy thinking, whereas low NFC consumers tend to avoid cognitive work requiring effort (Haugtvedt, Petty, & Cacioppo, 1992). The number of participants in each questionnaire ranged from 24 to 27. Quality perceptions, price perceptions, and purchase intentions generated by the HQLP appeal would be more favorable for consumers having a weak PQ-schema than for consumers having a strong PQ-schema. Following Lichtenstein et al. Both the HQ-only appeal and LP-only appeal are often adopted in retail advertisements. The effect of third-party rating on quality perceptions was examined by Akdeniz, Calantone, and Voorhees (2013). You can download the paper by clicking the button above. Thus, the HQLP appeal would not be accepted in the case of high priced products whereas the appeal would be accepted in the case of low prices. The PQ-schema was assessed by a 4-item scale (Burton et al., 1998; Lichtenstein et al., 1993). Impact of “High Quality, Low Price” Appe .... https://doi.org/10.1080/10496491.2015.1088922. H4b. A. Just because our prices are low, doesn’t mean we offer low-quality service. Based on these finding, we predict that high NFC consumers focus more on the two contradicting cues in the HQLP appeal than low NFC consumers. Table 1 shows the means by condition. Then, Wheatley, Chiu, and Goldman (1981) found that physical cues (product samples) exerted a more pronounced effect than price. Monroe (2003) developed a conceptual model incorporating this dual role in which higher prices lead customers first to perceive higher quality, then perceive a higher value, and finally to be more willing to pay. This research suggests that consumers pay attention to the HQLP appeal even though price discounts are not provided. If consumers accept such an appeal, then questions arise regarding their responses. We intended to understand the psychological impact of this appeal on consumer evaluations and shed light on how this relationship is moderated by the consumers' characteristics. Second, our subject pool consisted of a homogeneous student sample. Figure 2A and 2B shows two-way interactions on purchase intention for each group. Low price high quality. Three-way ANOVAs including NFC as a moderator were conducted. How can there be low price but high quality? Based on these findings, we predict that highly price conscious consumers evaluate the LP-only appeal more favorably because they are considered looking for indications of low or discount prices in general and the LP-only appeal meets their needs. The use of the HQLP appeal for high priced products; therefore, needs to be careful. It is postulated that these two cues elicit confusion in consumers and they are not accepted as they are. Others use low prices to attract larger customer bases of cost-conscious buyers. Finally, we tested H6. Suri et al. The perceptions will be as favorable as the HQ-only appeal and more favorable than the LP-only appeal when the price is low. Registered in England & Wales No. Although its effect may be moderated by some consumers' characteristics, it remains worthwhile to consider as an effective appeal in order to increase consumers' attention or improve their attitude toward products, services, and stores. 158054 items found for high quality cloth. Higher-priced products are believed to possess higher quality than lower-priced products. Some use high price points to emphasize the quality of their products. In particular, it confirms the usefulness of appeals expressed only with words, a subject that has been the focus of relatively few scholarly studies. The mean price was JPY149,423 (SD = JPY48,956) for an expensive price, JPY93,192 (SD = 23,667) for a reasonable price, and JPY47,115 (SD = 15,202) for an inexpensive price. D. R. Lambert (1980) also reviewed 14 studies and concluded that price was not the most important quality cue, but other extrinsic cues (store image, brand name, and country of manufacturer) were also associated with quality perceptions. Depending on which naive theory consumers use, a low price can indicate either good value or low quality, whereas a high price may imply either poor value or high quality, according to a new study. ~ Old adage. As described above, little research has focused on it, and consequently, no empirical studies have so far been reported. Shalby is one of the cheap low priced hospital stocks that individuals should buy. Generally speaking, the phrase is used pretty much to justify a higher markup. Although the HQLP excels the HQ-only appeal in monetary sacrifice perception, the HQ-only appeal excels the HQLP appeal in quality perception. This product category was selected based on the following criteria. The effect of this concept and a similar concept on contextual appeals was analyzed by Inman et al. To the best of our knowledge, this research is the first to reveal the specific role of the HQLP appeal by showing its ability to attract consumers in the absence of price discounts. Purchase intentions generated by the HQLP appeal were similar to those generated by the HQ-only appeal and it was more favorable than those generated from the LP-only appeal when the price was high. For example, Safeway claims “Check out our brands! This inference was found to be used more for low-similarity products than high-similarity products (Tull, Boring, & Gonsior, 1964) and more for durables than nondurables (Lichtenstein & Burton, 1989). Multiple cues studies extended earlier studies by including not only price, but also other cues in their analyses. This is a critical problem because this negative effect is much larger than the positive effects. The issue of monetary sacrifice should not be neglected when considering purchase intentions. If money has been tight but you find yourself needing a reliable vehicle to keep your life moving, Byrider wants to help. When do price promotions affect pretrial brand evaluations? In sum, this research offers theoretical contributions while adding to the growing literature documenting the impacts of various contextual appeals on consumers' evaluations. 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