The first topic that is thought-provoking is the relationship between quality and price. As Lichtenstein and Burton (1989) note, the over-reliance on price as an indicator of quality is a common mistake among consumers. Even though this observation was made forty years ago, it is still relevant today. Almost any person living in a country with a market economy is overwhelmed with a wide choice of available goods and services.
The proposed explanation for the inaccuracy of consumer’s perception of value included the concept of schema. It refers to the subjective understanding of market forces that determine how people perceive the quality of products. Unsurprisingly, Lichtenstein and Burton (1989) deduce that most of such assumptions are incorrect. However, the most intriguing implication is actually not stated – most people spend more money on overpriced products precisely due to their inner beliefs.
In essence, the majority of people are unaware that they lose money. Therefore, the subsequent problem is teaching consumers what can be done to reduce their unjustified spending. For instance, resource scarcity is a certain predictor of increase in price and value. However, the impression of scarcity is no less important, since it drives people to buy overpriced products (Park et al., 2020). As a result, people should challenge their schema in order to stop being deceived by prices.
The most effective way to change incorrect perception is to conduct research. The more people are aware of the quantities of products and their qualities, the easier they can spot inconsistencies between declared price and objective price. The availability of the Internet has facilitated this task, which is likely the reason why Lichtenstein and Burton (1989) did not address solutions to the identified problem. Today’s opportunities allow consumers to increase awareness of product value more than ever.
References
Lichtenstein, D. R., & Burton, S. (1989). The relationship between perceived and objective price-quality. Journal of Marketing Research, 26(4), 429-443. Web.
Park, H., Lalwani, A. K., & Silvera, D. H. (2020). The impact of resource scarcity on price-quality judgments. Journal of Consumer Research, 46(6), 1110-1124. Web.