Quality Response Model

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PRICE-QUALITY RELATIONSHIPS The conceptualization of market response as influenced by different segments of consumers, each with different perceptions of and preferences for product characteristics, leads to a managerially useful means for determining the optimum levels of price and quality to set for a product. In order to apply Shugan's model to a real market situation, one would need data about the market's response coefficients for both price and quality. The coefficient of sensitivity to changes in price could be determined from data collected in actual field manipulations of prices, or from experimental simulations, such as Dickson and Sawyer's (1984) approach. The quality-response coefficient, however, would be somewhat more difficult …show more content…

Zeithaml's call for refinement of our concepts and measures is very well taken. This is the first published work to systematically explore the past constructs and measures of price response, and to tie them together through the use of a common conceptual schema. Although the review of this literature is more descriptive than critical, it does help organize this body of work so that future research can better select appropriate measures with an eye toward establishing some continuity of usage of terms and operationalization’s. If future work in this area does achieve some consistency in its measures, then the literature will become more amenable to techniques for assessing the general conclusions to be drawn from the entire body of research …show more content…

The papers presented in this special topic session represent rather different approaches to studying this important area. As Zeithaml (1484) points out, the benefits to be gained by pooling knowledge from a wide variety of independent studies will be greatly expedited to the extent that we who carry out the research adopt consistent concepts and measures for our work. Through the development of standard price-response concepts and techniques for studying them, and with extensions of prior conceptualizing such as those represented by the papers of this session, advancement of knowledge of consumer price response will surely

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