Consumers frequently make judgments and decisions based on limited or incomplete information. Secondhand sources of product information (e.g., information from advertising, promotion, or word-of-mouth communication) typically provide information about some product properties and characteristics...

Consumers often rely heavily on price as a predictor of quality and typically overestimate the strength of this relation. Furthermore, the inferences of quality they make on the basis of price can influence their actual purchase decisions. Selective hypothesis testing appears to underlie the...