When do consumers assess a product primarily or solely based on its price? Price is likely to serve as an indicator of quality when buyers are uncertain about a product’s underlying quality. This happens when they are confronted with a product that is entirely new to them or one which they rarely buy. Consumers are also prone to make such price-based judgments when the absolute price of the product is not very high, when they have little transparency on prices for alternatives, or when they are under time pressure.
