Discounts have been found to lead to lower quality perceptions (Raghubir & Corfman, 1999); however, providing a message assuring product quality helps counter this negative perception (Darke & Chung, 2005). With respect to price, consumers may conclude that the price may be not as low as true low-priced products due to costs incurred from providing better quality. Hypotheses were tested using ANOVA including main effects of contextual appeal and price as well as the two-way interaction between them. This appeal is intriguing because it contains two cues: high quality and low price. Price perception was not influence by NFC. In the case of low prices, the HQLP appeal does not influence price perceptions and purchase intentions, but can still raise quality perceptions. Thus, the HQLP appeal may strengthen weak points of high priced and low priced products respectively. The purpose of this research, therefore, is to try to answer the above research questions. Both the HQ-only appeal and LP-only appeal are often adopted in retail advertisements. With respect to low price, purchase intentions did not differ among the three appeals and were influenced by price more than contextual appeal. High Quality, Low Price TAGS: Contract Manufacturing Supply Chain Regulatory Business Operations
Partnering with an audited, transparent contract manufacture that provides a high-quality product at a fair price is the brand owner’s best bet to avoid the cost of recalls, FDA warning letters and cease-and-desist orders later.As a result, purchase intentions of the HQLP appeal did not exceed purchase intentions of the HQ-only appeal. The present work also contributes to an understanding of the mechanism by which need-for-cognition moderates the impact of this appeal. High Quality Vs Low Price. The same dependent variables used in Study 1 were measured: quality perceptions, price perceptions, and purchase intentions. Although the “high quality” cue might tempt consumers' belief, the alternate cue of “low price” may evoke cognitive dissonance that hinders acceptance of this second cue. Owing to tremendous interest retailers and manufacturers have in the role of contextual appeals, a substantial body of empirical evidence has been accumulated. When observing the HQLP appeal, they seem to value more on the “high quality” cue in the case of low price while they seem to value more on the “low price” cue in the case of high price. In an advertisement, each contextual appeal was displayed in a prominent headline. Sorry, preview is currently unavailable. Rao and Monroe (1988) showed that low- and high-familiarity participants tended to use price while moderately-familiar participants tended to employ intrinsic cues (quality related information) to assess product quality. Questionnaire administration was conducted the same as in Study 1. Marketers employ various kinds of appeals to make products appear more attractive for consumers. The three levels of contextual appeal conditions were HQLP appeal, HQ-only appeal, and LP-only appeal; the two levels of price were high and low. Based on these finding, we predict that high NFC consumers focus more on the two contradicting cues in the HQLP appeal than low NFC consumers. Comparing high quality coats prices, you can buy quality high quality coats at factory price / low price in China. Furthermore, we also theorized that consumers' belief of a positive relationship between price and quality moderates the impact of this appeal. Hence, H5 is not supported. ANOVA conducted at each price level determined that the main effect from contextual appeal was observed only for high price (F(2, 75) = 13.26, p <.0001). Contrary to our expectation, the discounting of “low price” cue of the HQLP appeal was not observed here. Hence, H1 is supported for both prices. NFC refers to an individual's tendency to engage in and enjoy effortful cognitive endeavors (Cacioppo & Petty, 1982). In the case of high prices, the appeal leads to perceptions of lower quality than the HQ-only appeal, but higher quality than with the LP-only appeal, as expected. Thus far, numerous studies analyzed effects of product-related attributes on consumers' quality perceptions (e.g., Monroe & Dodds, 1988; Olson, 1977). High NFC group seems to prefer the HQ-only appeal more than the HQLP and LP-only appeals. Furthermore, a stream of research focused on contextual appeals that were indicated in retail advertisements. Lower Priced Sales Slogans . An additional pretest (n = 12) by using a four-point scale with anchors “very inexpensive” and “very expensive” indicated they were appropriate levels (Mmoderate = 3.25, Mlow = 1.38, t(11) = 7.64, p <.0001).