Determinants of Price Dependency: Personal and Perceptual Factors

Abstract

Using a conjoint measurement approach to elicit part-worths of five different quality cues (including price), this study shows that reliance on price for product/brand quality varies across subgroups. It was found that extent of cue utilization depends on an individual's perception of the product quality concept. Price was used primarily to assist in predicting the economic performance of a product/brand.