Effect of Product-Line Pricing Characteristics on Product Evaluations

Abstract

Examining the issue of product-line pricing from a behavioral perspective, this article reports an investigation of the relationship between the price structure of a product line and consumers' evaluations of a product model within the line. A 2 × 2 × 4 factorial design utilizing multiple dependent variables was conducted and replicated to test hypotheses derived from behavioral research. Results indicate that while the price characteristics of a product line influence consumer evaluations of a product model within the line, the price characteristics do not operate independently; rather, they interact. Further, the research suggests that several dependent variables that are usually considered separately in price research are actually dimensions of similar constructs.