“Price trumps quality”
Research on pricing and consumer behavior conducted by Ori Heffetz, assistant professor of economics, was featured in an article in BNET, a Web site for management professionals. In “Cornell’s Heffetz: Price Trumps Quality Perception in Purchasing Decisions” (10/20/09), Heffetz discusses the extent to which price influences a consumer’s perception of a food product and subsequent purchasing decisions. “When something is more expensive, consumers do think it’s better, but they also think it’s more expensive,” he says in the article. “With this specific set-up, economics won by a large margin.” Heffetz explains that while there will always be a few items that move at a higher price point for various reasons, if a company’s ultimate goal is to move as many units of a product as possible, then economics should be the main factor to consider when deciding the price.