||“Introductory Price” is a quality signal used in the service introductory period, implying consumers that introductory price brought the loss to service providers. Consumers will guess service providers wish them repurchase the service to recover their loss, so the service should be higher quality and higher value. Past researchers’ empirical studies about signal theory mostly focused on products. Therefore, the objective of this study is to verify whether “Introductory Price” is an effective quality signal in service industry, and find out other potential variables which have moderate effect with “Introductory Price”.|
This study use experimental design to examine consumers’ perceived quality, perceived sacrifice, perceived value, and purchase intention when they hear about the introductory price information of new service. Besides, this study use “Price estimate” to develop a new concept “Relative Introductory Price”. “Introductory Price”, “Competitor’s Price Information”, and “Cost Information” will influence “Relative Introductory Price”, which will influence the consumers’ perceived quality.
The result shows that even though consumers can’t differentiate the introductory price and long-term price, and still think “low price means low quality”, but other price information still has the moderate effect with “Introductory Price” to influence the “Relative Introductory Price”. Besides, the service providers in Taiwan used to make a high origin price. This kind of pricing style makes existence of other price information become more important.