OnDemand WTP Pricing Research

Higher price means higher quality in consumers’ minds: Study | Big News Network

Washington D.C [USA], July 24 (ANI): Why are we willing to pay much more for a six pack of craft beer, a locally produced bottle of wine or a regional brand item, often choosing them over national brands? It’s because when people prefer to ‘buy local,’ they more frequently base their decisions on price as a perception of quality, research shows.

“Consumers tend to use price to judge a product’s quality when their local identity is most important to them. When promoting high-priced or branded products, marketers can situationally activate consumers’ local identity. To accomplish this objective, businesses can encourage consumers to ‘think local’ or employ local cultural symbols in advertising and other promotional material,” said associate professor Ashok Lalwani.

The researchers also suggested that the opposite was true for low-price products.

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Higher price means higher quality in consumers’ minds: Study.

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