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...

[enter Abstract Body]This research investigates the effects of the amount of information presented, information organization, and concern about closure on selective information processing and on the degree to which consumers use price as a basis for inferring quality. Consumers are found to be...

Teigen (1974a, 1974b, 1983) observed that the numerical probabilities assigned to a set of exhaustive and mutually exclusive events frequently exceed one. Three experiments were performed to examine why these inflated numerical probability judgments form and what they reflect about people’s...