Archive for the ‘Quality – Quality Cues’ Category

Star gazing … how reliable are online user ratings?

May 20, 2016

When we’re buying something on Amazon, we all glance at the user ratings, right?

5-stars, it’s a keeper … 1 star it’s a bummer.

Real reviews from real users.

What could be more accurate?

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Some researchers tried to answer that question.

Since Consumer Reports has been in the quality testing business for decades with a reputation for rigor, objectivity and impartiality … So, to test the reliability of user ratings, the researchers took the Consumer Reports’ scores for 1,272 products and compared them to more than 300,000 Amazon ratings for the same items.

Their findings may surprise you …

(more…)

Posted in Biases, Cognitive biases, Consumer Reports, Quality - Quality Cues, User ratings | Leave a Comment »

Gotcha: “I paid more, so it must be better …”

April 26, 2016

One of my favorite sports’ movie scenes is from “Major League”

Newly hired manager Lou Brown is chatting with the Indians’ general manager.

One of the team’s players –Roger Dorn – pulls up in a fancy ride, hops out and unloads his golf clubs.

Brown says to the GM: “I thought you didn’t have any high-priced talent.”

The GM shoots back: “Forget about Dorn, he’s just high priced.”

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Lou Brown almost fell for a common trap …

Sometimes people do perceive that higher priced products are better – even when they’re not.

They’re subconsciously using price as a “quality cue”.

Here’s some research that supports the dynamic …

(more…)

Posted in Behavioral Economics, Mktg - Pricing, Quality - Quality Cues | Leave a Comment »

Gotcha: “I paid more, so it must be better …”

March 19, 2014

One of my favorite sports’ movie scenes is from “Major League”

Newly hired manager Lou Brown is chatting with the Indians’ general manager.

One of the team’s players –Roger Dorn – pulls up in a fancy ride, hops out and unloads his golf clubs.

Brown says to the GM: “I thought you didn’t have any high-priced talent.”

The GM shoots back: “Forget about Dorn, he’s just high priced.”

image

Lou Brown almost fell for a common trap …

Sometimes people do perceive that higher priced products are better – even when they’re not.

They’re subconsciously using price as a “quality cue”.

Here’s some research that supports the dynamic …

(more…)

Posted in Behavioral Economics, Mktg - Pricing, Quality - Quality Cues | Leave a Comment »

Gotcha: “I paid more, so it must be better …”

February 13, 2013

One of my favorite sports’ movie scenes is from “Major League”

Newly hired manager Lou Brown is chatting with the Indians’ general manager.

One of the team’s players –Roger Dorn – pulls up in a fancy ride, hops out and unloads his golf clubs.

Brown says to the GM: “I thought you didn’t have any high-priced talent.”

The GM shoots back: “Forget about Dorn, he’s just high priced.”

image

Lou Brown almost fell for a common trap …

Sometimes people do perceive that higher priced products are better – even when they’re not.

They’re subconsciously using price as a “quality cue”.

Here’s some research that supports the dynamic …

(more…)

Posted in Behavioral Economics, Mktg - Pricing, Quality - Quality Cues | Leave a Comment »