Perception of Product Quality in a Static State Utility Model
Abstract
The role of the consumer′s perception of product quality within the traditional economic utility model is examined. It is argued that by holding marginal utility to be equal among buyers, price reference will be defined specific to the buyer′s marginal utility of money. Price is “understood” by the buyer in terms of perceived quality. The article proceeds to discuss an actual price quantity relationship – implied by the theory – the price quantity data were researched from the theatre market.
Keywords
Citation
Huntington, P.A. (1990), "Perception of Product Quality in a Static State Utility Model", European Journal of Marketing, Vol. 24 No. 3, pp. 57-71. https://doi.org/10.1108/03090569010145340
Publisher
:MCB UP Ltd
Copyright © 1990, MCB UP Limited