On Consumer Beliefs about Quality and Taste
Abstract
Marketers and researchers alike typically regard products as differentiated by quality (modeled via vertical differentiation) or taste (modeled via horizontal differentiation). This research examines consumer beliefs about product differentiation. For a wide variety of product pairs, different consumers hold divergent beliefs about whether each pair is a matter of quality (such that one product is objectively better) or taste (such that one product is a better match with their own personal preferences). These beliefs have meaningful consequences. When consumers believe their chosen products are objectively better rather than better matches with their preferences: (1) they are willing to pay more for the chosen product over the alternative; (2) they self-reference less when explaining their choices; and (3) they are more likely to make transitive inferences from choices across other consumers. Observing others’ contradictory choices increases the likelihood of believing those products differ by taste rather than quality. Understanding consumer beliefs about product differentiation has implications for understanding consumer decision delegation and decisions that are made in group contexts and for strategic decisions including customer segmentation, product positioning, and pricing policies.
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Dynamic pricing has become a widespread practice in different business sectors, including hotels.
“It has become a widespread practice in different business sectors, mainly thanks to the development of the world wide web, e-commerce, and other online services [98, 28, 63], and, crucially, hotels [113, 51, 10, 61, 59, 86].”
From Consumer perception of price fairness and dynamic pricing: Evidence from Booking.com (2022) · cites this paper as [98]
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- Authors
- Spiller, S. A., & Belogolova, L.
- Affiliations
- University of California, Los Angeles (US)
- Meta (United States) (US)
- Corresponding author
- Spiller, Stephen A.
- ORCID
- Spiller, Stephen A.
- Venue
- Journal of Consumer Research
- Publisher
- Oxford University Press (OUP)
- Published
- 2016-10-24
- Pages
- ucw065
- ISSN
- 0093-5301 (ISSN-L)
- 1537-5277
- OpenAlex
- W2536318189
- Cited by
- 95
- References
- 91
- Citations by year
- 2026: 3 · 2025: 15 · 2024: 12 · 2023: 17 · 2022: 10 · 2021: 10 · 2020: 6 · 2019: 8 · 2018: 9 · 2017: 5
- FWCI
- 15.26
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Consumer Research (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Marketing › Consumer Market Behavior and Pricing
- Social Sciences › Business, Management and Accounting › Marketing › Consumer Behavior and Marketing Influence
- Social Sciences › Business, Management and Accounting › Marketing › Consumer Behavior in Brand Consumption and Identification
- Keywords
- consumer beliefs, product differentiation, vertical differentiation, horizontal differentiation, quality, taste, willingness to pay, self-reference, transitive inference, group decision making, customer segmentation, product positioning, pricing
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
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