Does Price Signal Quality? Strategic Implications of Price as a Signal of Quality for the Case of Genetically Modified Food

We add to the limited empirical literature on consumers' use of price as a quality signal by testing if the traditional downward-sloping consumption-price relationship fails to hold for GM products using data collected from a nationally representative mail survey featuring several hypothetical product choice scenarios. Statistical evidence is mixed across the three products investigated but suggests that survey respondents use price as a signal of the quality of GM products. Implications for firm strategy are discussed.


Issue Date:
2006
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/8209
Published in:
International Food and Agribusiness Management Review, Volume 09, Issue 1
Page range:
93-114
Total Pages:
22




 Record created 2017-04-01, last modified 2017-08-23

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)