A cross-national investigation of price brand determinants of perceived product quality

Price and brand image as determinants of product quality evaluations were investigated in a study that employed a 2 X 2 X 3 factorial design with na-tionality, brand, and price as main effects. The product was a previously un-known soft drink concentrate. Subjects were 181 American and 164 French undergraduate students. Subject and brand main effects, and two of the inter-action effects (Subject X Brand and Subject X Brand X Price) were statis-tically significant. French subjects evaluated both brands as being of higher quality than did American subjects, and the French brand was evaluated higher than the American brand. In addition, the nature of the price-product quality evaluation relationship differed between nationalities and between brands. There is considerable evidence that consumers often rely upon certain product-related attri-butes or cues as indicants of product quality when making purchase decisions (e.g., Allison &amp