Enhancing organic milk sales through cumulative power of product – extrinsic cues: empirical evidence from China

Abstract

PurposeTo examine the impact of manufacturer reputation, retailer reputation, and product price on consumers’ perceived quality and purchasing behavior regarding organic milk.Design/methodology/approachEmploying a 2 × 2 experiment, data were collected from 1,259 consumers in 32 provinces in China.FindingsWhen a low-reputation manufacturer sells products through a high-reputation retailer, it improves consumers’ perception of quality and positively influences their purchasing behavior. Interestingly, setting higher prices for products manufactured by low-reputation companies and selling them through high-reputation retailers did not significantly enhance consumers’ perceived quality and deter their purchasing behavior.Originality/valueThe analysis expands the framework for cue diagnosis. While the existing framework primarily focuses on the influence of cue-type combinations on perceived quality, it does not integrate purchasing behavior into the conceptual framework. This limitation hinders people understanding of the theoretical mechanisms underlying the use of cues in purchasing decisions. This paper address this by gradually introducing variables, such as retailer reputation and product price, into the baseline model, thereby extending this theory. In addition, this paper advances the marketing research literature within the business-to-business-to-consumer context by examining the additive effects of manufacturer reputation, retailer reputation, and product price on consumers’ perception of quality and purchasing behavior.