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

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

Research output: Journal article publicationJournal articleAcademic researchpeer-review

5 Citations (Scopus)


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 languageEnglish
Pages (from-to)99-110
Number of pages12
JournalMarketing Letters
Issue number2
Publication statusPublished - 1 Apr 1991
Externally publishedYes


  • Price
  • Quality
  • Service

ASJC Scopus subject areas

  • Economics and Econometrics
  • Marketing
  • Business and International Management

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