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

Abstract

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.

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