Marketing Seminar（2014-03）
Title:Ambiguous Expectations: The Impact of Product Performance in Different
Price-Tiers on Brand Evaluations
Time::Wednesday11 June.13:30-15:00pm
Location:Room217, Guanghua Building 2
Organizer:Department of Marketing
Abstract:
The consumer intuition that “you get what you pay for” has been validatedin research that demonstrates a positive correlation between price and consumers’ expectations of quality. Contrary to this intuition, we show that consumers do not spontaneously consider the price-tier of a product model when evaluating its performance and the brand. Specifically, unless explicitly reminded of the price-quality link, the poor performance of a low-tier model is judged to be just as detrimental to the brand as that of a high-tier model. Positive product performance, on the other hand, is equally beneficial to the brand regardless of price-tier. We reason that this is because consumers have clear expectations for performance of high-tier models but ambiguous ones for low-tier models. These results suggest a reconsideration of our understanding of price-based performance judgments for brand evaluation.
Your participation is warmly welcomed!
