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The influence of product knowledge and brand name on internal price standards and confidence
Author(s) -
Biswas Abhijit,
Sherrell Daniel L.
Publication year - 1993
Publication title -
psychology and marketing
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.035
H-Index - 116
eISSN - 1520-6793
pISSN - 0742-6046
DOI - 10.1002/mar.4220100104
Subject(s) - product (mathematics) , brand names , brand image , marketing , brand awareness , brand equity , advertising , psychology , business , mathematics , geometry
Abstract This study examines the influence of product knowledge (after adjusting for subjects' brand‐specific price knowledge) and brand image (via the brand name) on estimates of internal price standards (i.e., lowest, average, and highest price estimates) for two categories of electronic products. The impact of differing levels of product knowledge on consumers' confidence in their internal price estimates is also studied. The hypothesized effect of brand image on price estimates was greater for novice consumers than for experts for one of the two product categories. In addition, confidence in price estimates was found to be higher for experts than for novices for both product categories. These findings suggest that the relationship between product knowledge and brand image should be considered when studying the impact of external reference price on internal price standards. © 1993 John Wiley & Sons, Inc.