Price/brand effect model
In this study, the model being tested cross-culturally is based on the Dodds et
al. (1991) model, in which brand and price affect perceived quality and
perceived acceptability of price. The model is expanded to incorporate both
``attitude toward economizing'' and ``perceived acceptability of other costs'' as
important constructs for explaining how price/brand perceptions of Indians
differ from those of Americans (see Figure 1). The hypothesized relationships
are based on the literature of both price/brand effect models and the Indian
Focus groups. The hypothesized relations are based on the expectation that the
basic model can be replicated in the Indian context with the extension of the
hypothesized effects due to differences in attitude toward economizing and
acceptance of costs