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Healthy Skepticism Library item: 13305

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

 

Publication type: Journal Article

Rao AR, Monroe KB.
The Effect of Price, Brand Name, and Store Name on Buyers' Perceptions of Product Quality : An Integrative Review.
Journal of Marketing Research 1989 Aug; 26:(3):351-357
http://web.archive.org/web/20080510112957/http://www.marketingpower.com/content17866.php


Abstract:

The authors integrate previous research that has investigated experimentally the influence of price, brand name, and/or store name on buyers’ evaluations of product quality. The meta-analysis suggests that, for consumer products, the relationships between price and perceived quality and between brand name and perceived quality are positive and statistically significant. However, the positive effect of store name on perceived quality is small and not statistically significant. Further, the type of experimental design and the strength of the price manipulation are shown to significantly influence the observed effect of price on perceived quality.

Keywords:
*BRAND name products *PRICES *QUALITY of products *CONSUMER goods *PERCEIVED quality *CONSUMER behavior *EXPERIMENTAL design *COMMERCIAL products *CORRELATION (Statistics) *MATHEMATICAL models

 

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Cases of wilful misrepresentation are a rarity in medical advertising. For every advertisement in which nonexistent doctors are called on to testify or deliberately irrelevant references are bunched up in [fine print], you will find a hundred or more whose greatest offenses are unquestioning enthusiasm and the skill to communicate it.

The best defence the physician can muster against this kind of advertising is a healthy skepticism and a willingness, not always apparent in the past, to do his homework. He must cultivate a flair for spotting the logical loophole, the invalid clinical trial, the unreliable or meaningless testimonial, the unneeded improvement and the unlikely claim. Above all, he must develop greater resistance to the lure of the fashionable and the new.
- Pierre R. Garai (advertising executive) 1963