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Should Prices of Consumer Goods Be Better Indicators of Product Quality?

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  • Heiner Imkamp

    (University of Hohenheim, Household and Consumer Economics (530A))

Abstract

In contrast to the common assumption that prices are good indicators of quality, this note argues that price-quality correlations are typically rather low. Such low coefficients are not surprising since mass-produced goods of high quality may have lower prices than scarce goods of lower quality. In addition, low correlations can be characterized as desirable, since prices are an indicator not of quality but of scarcity.

Suggested Citation

  • Heiner Imkamp, 2018. "Should Prices of Consumer Goods Be Better Indicators of Product Quality?," Journal of Consumer Policy, Springer, vol. 41(1), pages 77-81, March.
    • Handle: RePEc:kap:jcopol:v:41:y:2018:i:1:d:10.1007_s10603-018-9367-2
    DOI: 10.1007/s10603-018-9367-2
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    References listed on IDEAS

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    1. Franziska Völckner & Julian Hofmann, 2007. "The price-perceived quality relationship: A meta-analytic review and assessment of its determinants," Marketing Letters, Springer, vol. 18(3), pages 181-196, September.
    2. Erich Kirchler & Florian Fischer & Erik Hölzl, 2010. "Price and its Relation to Objective and Subjective Product Quality: Evidence from the Austrian Market," Journal of Consumer Policy, Springer, vol. 33(3), pages 275-286, September.
    3. Heiner Imkamp, 2008. "A New Look at Old Coefficients," Journal of Consumer Policy, Springer, vol. 31(2), pages 139-145, June.
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    Cited by:

    1. Chung, Myungjin & Saini, Ritesh, 2022. "Consumer self-uncertainty increases price dependency," Journal of Business Research, Elsevier, vol. 140(C), pages 40-48.
    2. Shyue Chuan Chong & Foong Yee Tan & Pei Yew Mah & Choon Wei Low, 2020. "Consumers¡¯ Purchase Intention Toward Ergonomic Footwear in Malaysia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(2), pages 88-96, April.
    3. Benjamin Volland, 2019. "Conscientious consumers? Personality, preferences and expenditures in the UK," Journal of Bioeconomics, Springer, vol. 21(2), pages 71-109, July.

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