The Role of Price in Multi-Attribute Product Evaluations

Abstract

The potentially multifaceted role of price in product evaluations is investigated with an empirical analysis of surveyed beliefs, attitudes, and intentions regarding automobile brands. It is found that price beliefs both influence and are influenced by beliefs about a brand's quality, thereby contributing to the attribution definition process. However, price is not a significant determinant of overall attitude. It is also found that price becomes a negative factor when behavioral intentions are involved, lending support to an economic interpretation of price.