Measures the stable consumer tendency to use price as a heuristic signal of quality — the belief that more expensive products are generally better. Consumers with strong price-quality schemas rely on price as a diagnostic quality cue when objective quality information is absent or ambiguous, when they lack product expertise, or when the product category involves credence attributes that are difficult to evaluate. The schema moderates how consumers respond to price manipulations: for high-PQ-schema consumers, price cuts can paradoxically reduce perceived quality, while price increases enhance it. Foundational to reference price and premium pricing strategy research. Widely applied in studies of store brand vs national brand choice, luxury goods evaluation, and credence goods (healthcare, financial products, professional services) where quality cannot be directly verified.
Lichtenstein, D.R., & Burton, S. (1989). The relationship between perceived and objective price-quality. Journal of Marketing Research, 26(4), 429–443.
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