THE DOLLAR VALUE OF PRODUCT QUALITY: THE EFFECT OF PRICING VERSUS OVERALL LIKING ON CONSUMER STATED PURCHASE INTENT FOR PIZZA

This paper investigates the combined effects of price and product quality (overall liking) on the acceptance of restaurant pizza pies. The results reveal that when a panelist evaluates both liking and purchase intent (with price attached to the purchase intent question), product quality is a significantly stronger determinant of purchase intent than is the stated item price. For instance, a 10% increase in product quality (viz., liking) has the same effect on purchase intent as a 20% reduction in item price. The results are surprising, because for other categories investigated by the same method price is a significantly greater determinant of purchase intent. In terms of predictability, 57% of the variation in purchase intent ratings is accounted for by liking, 24% of the variation is accounted for by price, and the remaining 19% is due to error.