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Tensile and Objective Price Claims Evaluations least favorable for ads stating the minimum discount level Ads stating maximum discount levels are better than stating a range Perceived Quality Perceived Quality of Products Intrinsic vs. Extrinsic Cues Perceived Quality of Services Price/Quality Relationship Characteristics of Services Intangible Variable Perishable Simultaneously Produced and Consumed Table 6.3 SERVQUAL Dimensions for Measuring Service Quality DIMENSION DESCRIPTION Tangibles Appearance of physical facilities, equipment, personnel, and communication materials Reliability Ability to perform the promised service dependably and accurately Responsiveness Willingness to help customers and provide prompt service Assurance Knowledge and courtesy of employees and their ability to convey trust and confidence Empathy Caring, individualized attention the firm provides its customers Figure 6.15 Ad Emphasizing Tangible Cues Figure 6.16 Conceptual Model of the Consequences of Service Quality Superior Inferior Favorable Unfavorable Remain Behavior Defect +$ Ongoing Revenue Increased Spending Price Premium Referred Customers Financial Consequences -$ Decreased Spending Lost Customers Costs to Attract New Customers Service Quality Behavioral Intentions Focus of present study Empirical links demonstrated in macro studies Price/Quality Relationship The perception of price as an indicator of product quality (e.g., the higher the price, the higher the perceived quality of the product). Figure 6.17 Conceptual Model of the Effects of Price, Brand Name, and Store Name on Perceived Value Objective Price Perception of Price Perceived Sacrifice Perceived Quality Perceived Value Willingness to Buy A. Conceptual Relationship of Price Effect + + + + - - Figure 6.17 continued B. Extended Conceptualization to Include Brand Name and Store Name Store Name Brand Name Perception of Store Perception of Brand + + Objective Price Perception of Price Perceive
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