An Investigation into Consumer Search and Evaluation Behaviour: Effect of Brand Name and Price Perceptions

Abstract

Past researchers extended the conceptualized model of perceived value to include the effects of multiple extrinsic cues used as indicators of quality. The need for replication as well as extending the research findings has, however, been expressed unequivocally by the researchers as it remains to be seen if the existing relationships would hold for consumers hailing from emerging nations. The present study extends the theoretical and empirical evidences regarding the structural relationships of consumers’ perceptions of marketing cues, namely, price and brand name, with the perceptions of quality, risk, sacrifice and value in the Indian context. Using Partial Least Squares Structural Equation Modeling (PLS-SEM) based analysis of questionnaire-based responses of young Indian consumers, the study reports that high price is associated with the presence of better product features, assuming that a good quality product always comes with a high price attached and there is a possible shifting from looking to lower price-product options to alternatives which boast of a favourable brand name indicated by a higher price level. The study holds implications for marketers in regard to brand name positioning as well as planning communication and retail strategies.