Q1: Why headphones are considered as experience goods in this study?
A1: For consumers, sound quality is hard to evaluate before purchasing. Besides, many characteristics of headphones are also hard to evaluate for consumers.
Q2: How does this study quantify the sound quality of a headphone?
A2: Sound quality is quantified based on the standard deviation of the headphone’s frequency response curve from a target response curve. The lower the deviation is, the better the sound quality is.
Q3: What does this study conclude about the effect of sound quality on price?
A3: Sound quality has a positive effect on price. A headphone with a better sound quality has a higher price.