Journal article

The Effect of Correlation between Price and Quality on Consumer Choice.

Gilliland S, Heckler S, Jagacinski C, Puto C, Depart- P, Ordóñez L ...see all

Organizational behavior and human decision processes, vol. 75, issue 3 (1998) pp. 258-273

  • 1


    Mendeley users who have this article in their library.
  • N/A


    Citations of this article.
Sign in to save reference


According to the price-expectancy model of consumer choice, consumers evaluate products by comparing the actual price with a reference or expected price determined from (a) product's quality and (b) the price-quality correlation of the product category. Choices between hypothetical products of beer are used to test the model against a model without a reference price. Consistent with the price-expectancy model, product preferences varied with the subjective correlation between price and quality: the relative preference for higher priced/higher quality products over lower priced/lower quality products increased as the subjective correlation increased. For some pairs, the correlation between price and quality created a preference reversal across contexts: the higher priced/higher quality product was chosen over the lower priced/lower quality product in the higher correlational context, but the lower priced/lower quality product was chosen over the higher priced/higher quality product in the lower correlational context. An additional study provided evidence that the price-quality correlation affects reference price, rather than reference quality, formation. Copyright 1998 Academic Press.

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document


  • Stephen Gilliland

  • Susan Heckler

  • Carolyn Jagacinski

  • Chris Puto

  • Policy Depart-

  • Ld Ordóñez

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free