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A research program for establishing the validity of the price-quality relationship

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Abstract

Despite over 30 years of empirical investigations, it remains unclear whether (1) there is an actual positive relationship between price and product quality, and (2) whether buyers perceive a positive relationship between price and product quality. Although there has been a plethora of studies on the relationship, there is little agreement on what we know about the relationship. The paper assesses the current state of knowledge on the relationship and argues for a better conceptual framework for understanding the price-quality relationship. Then the paper outlines a systematic research program for establishing the validity of the relationship, and establishes a set of criteria for evaluating the contribution to knowledge of future research on the price-quality relationship.

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Author notes

  1. Kent B. Monroe

    Present address: Virginia Polytechnic Institute and State University, Blachsburg, USA

  2. William B. Dodds

    Present address: Boston College, Boston, USA

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    1. Kent B. Monroe
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    2. William B. Dodds
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    Monroe, K.B., Dodds, W.B. A research program for establishing the validity of the price-quality relationship. JAMS 16, 151–168 (1988). https://doi.org/10.1007/BF02723333

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