Romeu, Isabel C

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To Buy or Not To Buy
(2021-01-01) Romeu, Isabel C
As economies becomes increasingly consumerist, understanding decision-making becomes essential for brand managers and retailers. This study seeks to understand, within the dry spaghetti industry, the relationship between perceptions of price and brand as they influence value judgements and sets out to concretize a relationship (if one exists) between these judgements and purchasing inclinations. A survey was conducted among 500 Americans, using masked brand names and a shopping environment modeled after Amazon’s. Trends across responses indicate tendencies to use brand as a proxy for value. They also tend to consider price over brand in making purchasing decisions (brand mitigating this effect only if perceived very highly). Respondents were found to be as much as 4% less likely to purchase a product as prices increased by one dollar. The study also notes the importance of third-party labels like “Amazon’s Choice.” Furthermore, there is a positive correlation between value perceptions and purchase intentions.