The impact of free and exaggerated prices on perceived quality of services |
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| Authors: | Gerald J Gorn David K Tse Charles B Weinberg |
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| Institution: | (1) The University of British Columbia, British Columbia, Canada;(2) The University of British Columbia, British Columbia, Canada;(3) Faculty of Commerce, The University of British Columbia, V6T 1Y8 Vancouver, B.C., Canada |
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| 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. |
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| Keywords: | Price Quality Service |
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