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Journal cover: Journal of Consumer Marketing

Journal of Consumer Marketing

ISSN: 0736-3761

Online from: 1984

Subject Area: Marketing

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The price-category effect and the formation of customer value of high-tech products


Document Information:
Title:The price-category effect and the formation of customer value of high-tech products
Author(s):Juha Munnukka, (School of Business and Economics, Jyväskylä University, Jyväskylä, Finland), Pentti Järvi, (School of Business and Economics, Jyväskylä University, Jyväskylä, Finland)
Citation:Juha Munnukka, Pentti Järvi, (2012) "The price-category effect and the formation of customer value of high-tech products", Journal of Consumer Marketing, Vol. 29 Iss: 4, pp.293 - 301
Keywords:Consumer behaviour, Customer value, Extrinsic cues, High-tech products, Intrinsic cues, Price category, Product quality
Article type:Research paper
DOI:10.1108/07363761211237362 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Abstract:

Purpose – This study aims to explore: first, the formation of the customer value of high-tech consumer products through application of intrinsic and extrinsic cues of product quality; and second, the effect of the mental price category of the product on the construction of customer value.

Design/methodology/approach – The study was conducted in the Finnish consumer market in 2008. In total, 453 completed interview forms were collected through the structured interview method. The factor model was constructed through explorative factor analysis and hypothesis testing was conducted through linear multiple-regression analysis.

Findings – The high-tech product's price category was found to have a significant effect on the construction of the customer value. The mental price category in which consumers located the product was found to dictate how the perceived value was constructed through the intrinsic and extrinsic dimensions of product quality. The customer value of high-tech consumer products was composed of visual appeal, excellence, and price satisfaction. Intrinsic cues of product quality were emphasised.

Originality/value – The study provides new insights into how the formation of customer value is dictated by the mental price category perceived by consumers. Also, new information on how intrinsic and extrinsic cues of product quality affect the customer value of high-tech consumer products was provided.



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