Quality of an experience good: the interaction of price and advertising as a determining factor

IF 3.6 4区管理学 Q2 MANAGEMENT

Total Quality Management & Business Excellence Pub Date : 2022-08-16 DOI:10.1080/14783363.2022.2112515

Ricardo Sellers-Rubio, F. Mas-Ruiz, Fernando Campayo-Sanchez

{"title":"Quality of an experience good: the interaction of price and advertising as a determining factor","authors":"Ricardo Sellers-Rubio, F. Mas-Ruiz, Fernando Campayo-Sanchez","doi":"10.1080/14783363.2022.2112515","DOIUrl":null,"url":null,"abstract":"Abstract This paper analyses the product quality in terms of its price and company’s advertising investment. The central assumption is that the advertising investment of a collective brand member has a positive influence on its product quality until an advertising investment threshold is reached, after which the effect on product quality becomes negative. This change in the slope is explained because consumers perceive advertising effort as excessive, so they wonder if this means there’s a problem with the quality of the product. Advertising investment is curvilinearly related to product quality with a higher slope for products with low price than for those with high price, and positively related to products with moderate price. The results obtained from a sample of Spanish companies that operate in an experience goods industry (i.e. wineries) evidence the proposed relationships. These results reveal the importance of advertising investment for product quality in industries in which the signal of quality is not only reliant on the collective and individual brands; and also suggest the complexities of implementing such investment to get product quality in companies depending on their price.","PeriodicalId":23149,"journal":{"name":"Total Quality Management & Business Excellence","volume":"22 1","pages":"807 - 826"},"PeriodicalIF":3.6000,"publicationDate":"2022-08-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Total Quality Management & Business Excellence","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1080/14783363.2022.2112515","RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"MANAGEMENT","Score":null,"Total":0}

引用次数: 0

Abstract

Abstract This paper analyses the product quality in terms of its price and company’s advertising investment. The central assumption is that the advertising investment of a collective brand member has a positive influence on its product quality until an advertising investment threshold is reached, after which the effect on product quality becomes negative. This change in the slope is explained because consumers perceive advertising effort as excessive, so they wonder if this means there’s a problem with the quality of the product. Advertising investment is curvilinearly related to product quality with a higher slope for products with low price than for those with high price, and positively related to products with moderate price. The results obtained from a sample of Spanish companies that operate in an experience goods industry (i.e. wineries) evidence the proposed relationships. These results reveal the importance of advertising investment for product quality in industries in which the signal of quality is not only reliant on the collective and individual brands; and also suggest the complexities of implementing such investment to get product quality in companies depending on their price.

查看原文本刊更多论文

质量体验好:价格与广告的互动是决定因素

摘要:本文从产品价格和企业广告投入两个方面对产品质量进行了分析。本研究的中心假设是，一个集体品牌成员的广告投资对其产品质量具有正向影响，直到达到广告投资阈值，之后对产品质量的影响变为负向影响。这种斜率的变化可以解释为消费者认为广告力度过大，所以他们想知道这是否意味着产品质量有问题。广告投资与产品质量呈曲线关系，且价格低的产品比价格高的产品斜率更高，与价格适中的产品呈正相关。在体验品行业(即酿酒厂)运营的西班牙公司样本中获得的结果证明了所提出的关系。这些结果揭示了广告投资对产品质量的重要性，在这些行业中，质量的信号不仅依赖于集体和个人品牌;同时也表明了实施这种投资以使公司的产品质量取决于其价格的复杂性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Total Quality Management & Business Excellence MANAGEMENT-

CiteScore

8.90

自引率

12.80%

发文量

期刊介绍： Total Quality Management & Business Excellence is an international journal which sets out to stimulate thought and research in all aspects of total quality management and to provide a natural forum for discussion and dissemination of research results. The journal is designed to encourage interest in all matters relating to total quality management and is intended to appeal to both the academic and professional community working in this area. Total Quality Management & Business Excellence is the culture of an organization committed to customer satisfaction through continuous improvement. This culture varies both from one country to another and between different industries, but has certain essential principles which can be implemented to secure greater market share, increased profits and reduced costs. The journal provides up-to-date research, consultancy work and case studies right across the whole field including quality culture, quality strategy, quality systems, tools and techniques of total quality management and the implementation in both the manufacturing and service sectors. No topics relating to total quality management are excluded from consideration in order to develop business excellence.