Does Price Signal Quality? Strategic Implications of Price as a Signal of Quality for the Case of Genetically Modified Food
No hay miniatura disponible
Fecha
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
We add to the limited empirical literature on consumers' use of price as a quality signal by testing if the traditional downward-sloping consumption-price relationship fails to hold for GM products using data collected from a nationally representative mail survey featuring several hypothetical product choice scenarios.
Statistical evidence is mixed across the three products investigated but suggests that survey respondents use price as a signal of the quality of GM products.
Implications for firm strategy are discussed.