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Effects of Construal Level on the Price-Quality Relationship

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  • Dengfeng Yan
  • Jaideep Sengupta

Abstract

Drawing on construal level theory, this research proposes that consumers' reliance on price (vs. feature-specific product attributes) for making quality inferences will be enhanced when the judgment is psychologically distant (vs. close). For example, the impact of price (attributes) on quality inferences should increase (decrease) when these inferences are made with regard to another person rather than oneself. A series of experiments provides support for this thesis. In addition, we (a) document a theoretically derived reversal of the core pattern, (b) reconcile the current findings with seemingly opposed results in the construal literature, and (c) rule out several alternative explanations for the obtained effects. The insights obtained in this work enrich our understanding of three different areas of research: the price-quality link, construal level theory, and the self-other distinction.

Suggested Citation

  • Dengfeng Yan & Jaideep Sengupta, 2011. "Effects of Construal Level on the Price-Quality Relationship," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 38(2), pages 376-389.
    • Handle: RePEc:oup:jconrs:doi:10.1086/659755
    DOI: 10.1086/659755
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    Cited by:

    1. Chung, Myungjin & Saini, Ritesh, 2022. "Consumer self-uncertainty increases price dependency," Journal of Business Research, Elsevier, vol. 140(C), pages 40-48.
    2. Togawa, Taku & Ishii, Hiroaki & Park, Jaewoo & Roy, Rajat, 2023. "The temperature of newness: How vision–temperature correspondence in advertising influences newness perception and product evaluation," Journal of Business Research, Elsevier, vol. 160(C).
    3. Ji Wu & Haichuan Zhao & Haipeng (Allan) Chen, 2021. "Coupons or Free Shipping? Effects of Price Promotion Strategies on Online Review Ratings," Information Systems Research, INFORMS, vol. 32(2), pages 633-652, June.
    4. Jun, Sung Youl & Kim, Kyung Ho & Park, Hye Kyung, 2019. "The effect of the preorder strategy on consumers' product choice: The moderating role of product experience and payment timing," Journal of Business Research, Elsevier, vol. 99(C), pages 80-86.
    5. Akshay R. Rao, 2013. "How and why is price perceived: a commentary on Cheng and Monroe," AMS Review, Springer;Academy of Marketing Science, vol. 3(3), pages 146-150, September.
    6. Anton, Ramona & Chenavaz, Régis Y. & Paraschiv, Corina, 2023. "Dynamic pricing, reference price, and price-quality relationship," Journal of Economic Dynamics and Control, Elsevier, vol. 146(C).
    7. Mohamed Didi Alaoui, 2020. "L’effet d’adéquation entre la forme de présentation du prix et de la distance temporelle sur les réponses du consommateur : une approche par la théorie des niveaux de représentation," Post-Print hal-02870097, HAL.
    8. Wang, Xuehua & Wang, Xiaoyu & Fang, Xiang & Jiang, Qingyun, 2018. "Power distance belief and brand personality evaluations," Journal of Business Research, Elsevier, vol. 84(C), pages 89-99.
    9. Haipeng (Allan) Chen & Woojin Choi & Yan (Lucy) Liu & Haoying Sun & Fu Liu, 2021. "More or Less? Consumer Goal Orientation and Product Choice," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 8(1), pages 16-26, June.
    10. Nicole Koschate-Fischer & Katharina Wüllner, 2017. "New developments in behavioral pricing research," Journal of Business Economics, Springer, vol. 87(6), pages 809-875, August.
    11. Nelson Borges Amaral & Jinfeng Jiao, 2023. "Responses to Ethical Scenarios: The Impact of Trade-Off Salience on Competing Construal Level Effects," Journal of Business Ethics, Springer, vol. 183(3), pages 745-762, March.
    12. Li, Jianpei & Zhang, Wanzhu, 2022. "Behavior-based pricing and signaling of product quality," MPRA Paper 120263, University Library of Munich, Germany, revised 03 Jan 2023.
    13. Ashok K. Lalwani & Lura Forcum, 2016. "Does a Dollar Get You a Dollar’s Worth of Merchandise? The Impact of Power Distance Belief on Price-Quality Judgments," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 43(2), pages 317-333.
    14. Franziska Völckner & Alexander Rühle & Martin Spann, 2012. "To divide or not to divide? The impact of partitioned pricing on the informational and sacrifice effects of price," Marketing Letters, Springer, vol. 23(3), pages 719-730, September.

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