A Revision and Empirical Test of the Extended Price-Perceived Quality Model

Abstract

This article examines the price-perceived quality paradigm. The subjects were 150 junior and senior marketing principles students with ages ranging from twenty to twenty-two years old. The sample was sixty percent female. Subjects were given a questionnaire containing the description of a product, the regular price charged for the product, and coupon information. Five price levels and five coupon offers were set for the research design. PACKAGE and LISREL were used to analyze the relationships between the dependent variables of the model. All of the dependent variable relationships were supported at the p <.005 level.