The formation of a “high price – high quality” inferential belief: a study among young buyers of mobile phones and note books

Abstract

Previous research has focused on identifying factors that influence buyers who uses price as a cue to quality. However, little work has been done to explain the theory of association and the psychological processes behind the buyer’s price‐quality association. This study examines the process from a psychological perspective and examines some antecedent variables in the formation of a price‐quality inferential belief. Data is collected for two product categories among a sample of young respondents. Results show that (1) the link between perceptual and inferential belief about the price‐quality association is stronger when the perceptual belief is based on direct purchase experience rather than on advertising; (2) buyers that lack direct purchase experience of a product category tends to rely on advertising to form their inferential belief. Implications are discussed, limitations are noted and directions for future research are indicated.

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