A new study from the University of Chicago Booth School of Business shows that consumers rely on price to determine the quality of products, even when they have other information available.

The study, published in the Journal of Marketing Research, found that consumers are more likely to believe that a product is of higher quality if it is more expensive. This is true even when consumers are given information about the product's features and benefits.

"Our findings suggest that consumers use price as a heuristic for quality when they don't have enough information to make an informed decision," said study co-author Prof. Akshay Rao. "This is because price is often a signal of quality. More expensive products are often made with higher-quality materials and construction, and they come with better warranties and customer service."

The study also found that consumers are more likely to rely on price when they are buying products that they are not familiar with. This is because consumers don't have enough experience with these products to make an informed decision about their quality.

"Our findings have implications for marketers," said study co-author Prof. Aradhna Krishna. "Marketers should be aware that consumers use price as a heuristic for quality. They should therefore make sure that their products are priced competitively and that they communicate the value of their products to consumers."

The study was conducted using a series of experiments. In one experiment, participants were asked to evaluate two different products. One product was more expensive than the other, but both products had the same features and benefits. Participants were more likely to believe that the more expensive product was of higher quality.

In another experiment, participants were asked to evaluate a product that they were not familiar with. Participants were more likely to rely on price when they were evaluating this product.

The study's findings suggest that consumers should be aware of the role that price plays in their decision-making. Consumers should not rely solely on price when making decisions about what products to buy. They should also consider other factors, such as the product's features and benefits, warranties, and customer service.