| Abstract: | The objectives of this paper were to investigate price-quality relations for durable goods over an extended period of time and to determine if there had been any improvements in price-quality relations in recent years. Durable goods were selected since they are expensive, infrequently purchased items, and are hence more likely to stimulate the development of an expert buyer's market. The relation between price and product quality was measured using data fromConsumer Reports from 1970–1977. The results were compared to an earlier study by Morris and Bronson which usedConsumer Reports data from 1960–1967. A comparison of data for the two time periods showed an increase in the percentage of significant correlations but a decline in the median correlation coeffizient. On the whole, it was concluded that price-quality relations in the two time periods did not differ to any great extent. In addition, there was no significant improvment in price-quality relations from 1970–1977. |
