Price, nonprice product information, and purchase intention, together with the intervening variables of perceived price, perceived quality, and perceived value, are empirically examined. The results indicate that perceived price is positively influenced by objective price and negatively influenced by reference price. They support the positive price-perceived quality relationship found in previous studies and, further, show that the influence of price on perceived quality is lessened in the presence of substantial direct product information. Finally, the results demonstrate that a trade-off between perceived price and perceived quality leads to perceived value, and perceived value is a primary factor influencing purchase intention.
This is a preview of subscription content, log in to check access.
Buy single article
Instant access to the full article PDF.
Price includes VAT for USA
Subscribe to journal
Immediate online access to all issues from 2019. Subscription will auto renew annually.
This is the net price. Taxes to be calculated in checkout.
Baron, Reuben M. and David A. Kenny. 1986. “The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations.”Journal of Personality and Social Psychology 51 (6): 1173–1182.
Chang, Tung-Zong and Albert R. Wildt. 1989. “The Number and Importance of Information Cues and the Price-perceived Quality Relationship.” In1989 AMA Educators’ Proceedings: Enhancing Knowledge Development in Marketing. Eds. Paul Bloom et al. Chicago: American Marketing Association, 209.
Dickson, Peter R. and Alan G. Sawyer. 1986. “Point-of-Purchase Behavior and Price Perceptions of Supermarket Shoppers.” Report No. 86-102. Cambridge, MA: Marketing Science Institute.
Dodds, William B. and Kent B. Monroe. 1985. “The Effect of Brand and Price Information on Subjective Product Evaluations.” InAdvances in Consumer Research. Eds. Elizabeth Hirschman and Morris Holbrook. Provo, UT: Association for Consumer Research, 85–90.
Erickson, Gary M. and Johny K. Johansson. 1985. “The Role of Price in Multi-Attribute Product Evaluations.”Journal of Consumer Research 12 (September): 195–199.
Gardner, David M. 1970. “The Role of Price in Consumer Choice.” InSelected Aspects of Consumer Behavior. Washington, DC: U.S. Government Printing Office, 415–434.
Helson, Harry. 1964.Adaptation-Level Theory. New York: Harper & Row.
Holbrook, Morris B. and Kim P. Corfman. 1985. “Quality and Value in the Consumption Experience: Phaedrus Rides Again.” InPerceived Quality. Eds. Jacob Jacoby and Jerry Olson. Lexington, MA: Lexington Books, 31–57.
Huber, Joel, Morris B. Holbrook, and Barbara Kahn. 1986. “Effects of Competitive Context and of Additional Information on Price Sensitivity.”Journal of Marketing Research 23 (August): 250–260.
Jacoby, Jacob and Jerry C. Olson. 1977. “Consumer Response to Price: An Attitudinal, Information Processing Perspective.” InMoving Ahead with Attitude Research. Eds. Yoram Wind and Marshall Greenberg. Chicago: American Marketing Association, 73–86.
Lichtenstein, Donald R. and William O. Bearden. 1989. “Contextual Influences on Perceptions of Merchant-supplied Reference Prices.”Journal of Consumer Research 16 (June): 55–66.
Monroe, Kent B. and Joseph D. Chapman. 1987. “Framing Effects of Buyers’ Subjective Product Evaluations.” InAdvances in Consumer Research. Eds. Melanie Wallendorf and Paul Anderson. Provo, UT: Association for Consumer Research, 193–197.
Monroe, Kent B. and R. Krishnan. 1985. “The Effect of Price on Subjective Product Evaluations.” InPerceived Quality. Eds. Jacob Jacoby and Jerry Olson. Lexington, MA: Lexington Books, 209–232.
Myers, James H. and Allan D. Shocker. 1981. “The Nature of Product-related Attributes.” InResearch in Marketing. Ed. Jagdish N. Sheth. Greenwich, CT: JAI, 211–236.
Nunnally, Jum C. 1978.Psychometric Theory. New York: McGraw-Hill.
Olson, Jerry C. 1977. “Price as an Informational Cue: Effects on Product Evaluation.” InConsumer and Industrial Buying Behavior. Eds. Arch Woodside, Jagdish Sheth, and Peter Bennett. New York: North Holland, 267–286.
Olson, Jerry C. and Jacob Jacoby. 1972. “Cue Utilization in the Quality Perception Process.” InProceedings of the Third Annual Conference of the Association for Consumer Research. Ed. M. Venkatesan. Iowa City, IA: Association for Consumer Research, 167–179.
Parasuraman, A., Valarie A. Zeithaml, and Leonard L. Berry. 1985. “A Conceptual Model of Service Quality and Its Implications for Future Research.”Journal of Marketing 49 (Fall): 41–50.
Petroshius, Susan M. and Kent B. Monroe. 1987. “Effect of Product-Line Pricing Characteristics on Product Evaluations.”Journal of Consumer Research 13 (March): 511–519.
Rao, Akshay R. and Kent B. Monroe. 1988. “The Moderating Effect of Prior Knowledge on Cue Utilization in Product Evaluations.”Journal of Consumer Research 15 (September): 253–264.
Sawyer, Alan and Peter Dickson. 1984. “Psychological Perspectives on Consumer Response to Sales Promotion.” InResearch on Sales Promotion: Collected Papers. Ed. Katherine Jocz. Cambridge, MA: Marketing Science Institute, 1–21.
Sherif, Carolyn. 1963. “Social Categorization as a Function of Latitude of Acceptance and Series Range.”Journal of Abnormal and Social Psychology 67 (August): 148–156.
Tellis, Gerard J. and Gary J. Gaeth. 1990. “Best Value, Price-Seeking, and Price Aversion: The Impact of Information and Learning on Consumer Choices.”Journal of Marketing 54 (April): 34–45.
Urbany, Joel E., William O. Bearden, and Dan C. Weilbaker. 1988. “The Effect of Plausible and Exaggerated Reference Prices on Consumer Perceptions and Price Research.”Journal of Consumer Research 15 (June): 95–110.
Winer, Russell S. 1986. “A Reference Price Model of Brand Choice for Frequently Purchased Products.”Journal of Consumer Research 13 (September): 250–256.
Zeithaml, Valarie A. 1988. “Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence.”Journal of Marketing 52 (July): 2–22.
He received his Ph.D. from the University of Missouri. His primary research interests are in the areas of consumer behavior and international marketing.
He received his Ph.D. from Purdue University. He has published articles in various business, marketing, and social science journals.
About this article
Cite this article
Chang, T., Wildt, A.R. Price, product information, and purchase intention: An empirical study. JAMS 22, 16–27 (1994). https://doi.org/10.1177/0092070394221002
- Product Information
- Purchase Intention
- Consumer Research
- Reference Price
- Quality Perception