Student’s Name Professor’s Name Course Due Date The Relationship between High Pricing and Product Quality Introduction The way consumers perceive price is one of the major variables determining the buying behavior of consumers. Both economists and markets researchers have been both put to the task of researching and they concluded that price is the primary force behind buying decisions in a buying process. Correspondingly it is almost conclusive of many studies that the process of decision making in marketing is largely dependent on the price of the commodity. The factors that exert influence on price perception can be of either subjective or rational nature or both. For the upward price trends most factors are prestigious and thus psychological. For this reason understanding the consumers’ psychology as a major factor influencing consumer’s price perception is the key to unlocking explaining and exploring consumers’ price perception in its very essence. Firms "FACTORS AFFECTING CONSUMERS'GREEN PURCHASING BEHAVIOR: AN INTEGRATED CONCEPTUAL FRAMEWORK." Amfiteatru Economic 14.31 (2012): 50. Olsen Svein Ottar. "Comparative evaluation and the relationship between quality satisfaction and repurchase loyalty." Journal of the academy of marketing science 30.3 (2002): 240-249. Ordonez Lisa D. "The effect of correlation between price and quality on consumer choice." Organizational behavior and human decision processes 75.3 (1998): 258-273. Park Chung-Hoon and Young-Gul Kim. "Identifying key factors affecting consumer purchase behavior in an online shopping context." International Journal of Retail & Distribution Management 31.1 (2003): 16-29. Steenkamp Jan-Benedict EM. "The relationship between price and quality in the marketplace." De Economist 136.4 (1988): 491-507. Walsh Gianfranco Kevin P. Gwinner and Scott R. Swanson. "What makes mavens tick? Exploring the motives of market mavens’ initiation of information diffusion." Journal of Consumer Marketing 21.2 (2004): 109-122. Zeithaml Valarie A. Defining and relating price perceived quality and perceived value. na 1987. [...]
This research is to investigate the relationship that exists between the price and quality of a product. It seeks to determine whether high price confirms high quality and whether this perception influences consumer purchasing behaviour. Additionally, it will also consider factors that motivate this kind of strategy in an organisation and ways this position influences consumers.