Getting Less Than You Pay For: Very High Prices Lead to Inferences of Very Low Quality

Ayelet Gneezy , University of California, San Diego, USA
Ziv Carmon, INSEAD, Singapore
Leif D. Nelson, University of California, San Diego, USA
As products get more expensive people expect higher quality. In fact, research has documented that merely offering a higher price can fundamentally improve customer evaluation and even product performance. Nevertheless, high prices bring high expectations, and unmet expectations might negatively influence quality inferences. In four studies we asked participants to taste novel cookies and rate their quality. Whereas slightly higher prices produced slightly higher quality ratings, substantially higher prices produced substantially lower quality ratings.
[ to cite ]:
Ayelet Gneezy , Ziv Carmon, and Leif D. Nelson (2009) ,"Getting Less Than You Pay For: Very High Prices Lead to Inferences of Very Low Quality", in NA - Advances in Consumer Research Volume 36, eds. Ann L. McGill and Sharon Shavitt, Duluth, MN : Association for Consumer Research, Pages: 119-122.