- Futurity.org - http://www.futurity.org - On sale! But does
inexpensive mean cheap? Posted By Amy Wolf-Vanderbilt On
November 27, 2012 @ 10:32 am In Society & Culture | No Comments
VANDERBILT (US) — The holidays usher in the biggest shopping
season of the year, but sellers need to beware: sale prices can
mean different things to different consumers. New research shows
that consumers often make inferences to fill in gaps in
knowledge when they don’t have complete information regarding
products. To some, price denotes quality. For others, a low
price means a good value. New research by Vanderbilt Owen
Graduate School of Management professor Steve Posavac and his
co-authors finds that in some consumers’ minds, price denotes
quality. For others, low price leads a consumer to believe he or
she is getting a good value. “The bottom line of our research is
that people can hold two opposing beliefs about a product. In
the case of price, most people simultaneously believe that low
prices mean good value and that low p