The impact of free and exaggerated prices on perceived quality of services

Gerald Gorn; David K. Tse; Charles B. Weinberg

doi:10.1007/BF00436031

The impact of free and exaggerated prices on perceived quality of services

Gerald Gorn, David K. Tse, Charles B. Weinberg

Research output: Journal article publication › Journal article › Academic research › peer-review

12 Citations (Scopus)

Abstract

Previous research in the price-quality area has largely limited its focus to the normal price range and has concentrated on physical goods almost entirely. This study examines the effect of offering a service for free and at an exaggerated price on the perception of its quality. Consistent with the theory developed in this paper, the experimental results suggest that when the tested services are offered for free and for exaggerated prices, they are perceived as lower in quality than when they are offered in a normal price range.

Original language	English
Pages (from-to)	99-110
Number of pages	12
Journal	Marketing Letters
Volume	2
Issue number	2
DOIs	https://doi.org/10.1007/BF00436031
Publication status	Published - 1 Apr 1991
Externally published	Yes

Keywords

Price
Quality
Service

ASJC Scopus subject areas

Economics and Econometrics
Marketing
Business and International Management

More information

10.1007/BF00436031

Cite this

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The impact of free and exaggerated prices on perceived quality of services

Abstract

Keywords

ASJC Scopus subject areas

More information

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