The Price‐Quality Relationship—Revisited

Abstract
Using price data collected in Indianapolis and Lafayette, Indiana, rank order correlations between price and quality were computed. These were compared to correlations based on price data obtained from the publications of consumer product testing organizations. It was found that price‐quality correlations based on the price data furnished by consumer product testing organizations may not reflect price‐quality correlations for specific markets. A second finding of the study suggests the existence of variability across store types with respect to price‐quality correlations.

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