How do pricing and the representation of price affect consumer evaluation of nursery products? A conjoint analysis

This study investigates how pricing and the representation of price (location of price sign, area of price number on price sign, extrinsic cue on price sign) influence consumer evaluation of nursery products. An incomplete orthogonal set of levels for each factor was used in a 35 factorial conjoint analysis. A web-based survey was conducted in March 2015. The results show the four factors account for 50.24% of the variance in plant preference, the other factor (plant type) accounts for the remaining 49.76%. Relative importance decreases from price level (16.15%) to cue (12.27%) to area (11.04%) and location (10.79%). Consumer’s purchase intention varies by demographics. The price level-purchase intention relationship also depends on cue. Benefit cue is more likely to offset the adverse effect of a price increase on purchase intention than feature cue, and the price level-purchase intention relationship for plants with feature/benefit cue appears to be inverted U shape.

Issue Date:
Mar 20 2017
Publication Type:
Journal Article
Record Identifier:
Published in:
International Food and Agribusiness Management Review, Volume 20, Issue 4
Page range:
JEL Codes:
D03; M31; Q13

 Record created 2017-10-16, last modified 2018-01-23

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