Package size and perceived quality: The intervening role of unit price perceptions

This research examines how package size can influence quality judgments for packaged goods, and also identifies a price-based mechanism for the observed size–quality relationship. Results from several studies show that a product in a smaller package is rated more favorably than the equivalent product in a larger package. Further, this effect is due to the smaller package being associated with a higher unit price (despite having a lower overall price), which suggests that unit price information is more diagnostic than overall price information when forming judgments of product quality. We also find a theoretically-derived reversal of this effect under conditions in which the greater diagnosticity of unit price is overwhelmed by its lower ease of use. Namely, when overall price is the only explicitly-provided price cue and consumers are too distracted to estimate unit price, a larger package is now rated as being better. Finally, two concluding studies examine the downstream consequences of changes in package size, building off our basic conceptualization to document effects on product choice as well as consumption experience.