" (1999) Therefore for the purpose of this study this antecedent relating to price consciousness will not be a variable in understanding the questions posed in this study.
Sirha and Batra (1999) state that this inference "is widely accepted as being context-specific, moderated by situational characteristic such as the extensiveness of a consumer's cognitive schemes and his/her product class knowledge" and cite the work of Peterson and Wilson (1985). Therefore, it can be understood that while the consumer might believe that a higher price being paid obtains the same equal receipt of quality in some categorical purchases but yet not in others. Each consumer is required to make trade-offs relating to price-quality factors and the category might well impact the consumer's decision to make certain trade-offs or alternatively the category might serve to dissuade the trade-off in which quality is reduced due to a reduction in price for that product.
The first hypothesis stated by Sinha and Batra is: "All else being equal, consumers will be more price consciousness in product categories where they perceive a lower perceived price -- quality association." (2008) the second hypothesis stated is: "All else being equal, consumers will be more price consciousness in product categories where they perceive greater risk" and Hypothesis Two a is stated as: "All else being equal, the negative effect of a consumer's perceived price -- quality association in a category on his or her category price consciousness will be moderated by his or her perceptions of category risk, being stronger as category risk increases and weaker as risk decreases." (Sinha and Batra, 1999) Other stated hypotheses in the study of Sinha and Batra (1999) are the following:
Hypothesis 3: All else being equal, consumers will be more price consciousness in product categories where they perceive price unfairness by national brands.
Hypothesis 4. All else being equal, the degree of a consumer's category price consciousness will positively affect his or her purchase of PLBs in that category
Hypothesis 5. All else being equal, a consumer's perceived category risk will have a negative effect on his or her private label purchase.
Hypothesis 6. All else being equal, a consumer's perceived price -- quality association will have a negative effect on his or her PLB purchases.
Hypothesis 6A. All else being equal, the direct _negative. Effect of a consumer's perceived price -- quality association in a category on his or her PLB purchases will be moderated by his or her perceptions of category risk, being stronger as category risk increases and weaker as risk decreases.
Hypothesis 7. All else being equal, perceived price unfairness will have a positive effect on PLB purchases in a category.
Sinha and Batra report in their findings that their study served to highlight the "…role of perceived quality" and the roles of "consumer's perceptual factors concerning prices, a perspective that is missing from the literature." (1999) Additionally they report having "studied these effects using data from several product categories, explicitly modeling the perceived differences in these categories on dimensions of category risk." (Sinha and Batra, 1999)
The results of the study reported by Sinha and Batra (1999) are of the nature which support "…several of the hypothesized antecedents" and specifically stated in the findings are "that consumers are less price conscious in categories where perceived risk is deemed to be high" and that this finding is "consistent with previous research" however it is stated to be demonstrated "at the category level utilizing data from multiple categories with explicit modeling of perceptions of category risk." (Sinha and Batra, 1999)
Stated as a second result that is interesting is the fact that the perceptions of consumers regarding national brand pricing unfairness within specific categories of products results in consumers becoming more price conscious in those very categories. Sinha and Batra relate that previous studies in the area of consumer behavior and economic psychology has failed to account for the "significant role of perceived price fairness/unfairness on consumer price consciousness" and that this finding appears to make the provision of "empirical support to the 'dual-entitlement theory of Kahneman et al. (1986) which stipulates that community standards of fairness act as a constraint to a firm's quest for profits, and price increases that result not from increases in costs but from higher profit motive and/or market dominance are judged as being unfair and subsequently 'punished' by consumers." (Sinha and Batra, 1999)
Additionally resulting from the study of Sinha and Batra (1999) is the finding...
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