Does a low price mean bad quality and poor value?
Table of Contents
Does a low price mean bad quality and poor value?
Depending on which naive theory consumers use, a low price can indicate either good value or low quality, whereas a high price may imply either poor value or high quality, according to a new study in the Journal of Consumer Research.
Does higher quality mean higher cost?
At higher prices, small changes in price correspond to smaller changes in quality. In all cases, however, higher prices correspond to higher levels of the quality. It is important to remember that we observe a price-quality relationship in the absence of competition between the geographic market segments.
Does price determine quality?
According to Obermiller (1988), the product line structure, the existence of multiple quality levels under one brand name, is found to be a predictor of price-quality effects. Hence, consumers who use price as a surrogate indicator of quality do so because they believe differences in quality exist.
What is a low cost product?
Consumer staples produced by low-cost producers generally include household items, cleaning products, food, beverages—any items that consumers cannot cut out.
What does quality over price mean?
Choosing quality over price means saving money. It means less hassle. It means that your time is spent doing what you want to do instead of worrying about the product which has just broken. Spend more to save more. So, how do you do that?
Do people prefer quality over price?
Choosing quality over price is almost always the sustainable choice because it eliminates waste, improves efficiency, and supports businesses that prioritizes value. Price will always be a factor in your decision making for buying a product, but today’s post will hopefully show you that it shouldn’t be the only one.
How would you describe low cost?
Low-price Synonyms – WordHippo Thesaurus….What is another word for low-price?
| economical | cheap |
|---|---|
| inexpensive | reasonable |
| budget | economy |
| low-budget | low-cost |
| bargain | bargain-basement |
What is low cost provider?
A low-cost provider seeks to sell its products at the lowest price it can, while still making a profit so that it can draw customers to the market. This is the broad version of the low-cost strategy because such companies try to appeal to a broad market.
What does price say about quality?
Summary: A study shows that marketers of relatively high-priced products should consider keeping prices high, as many consumers associate high price with high quality.
https://www.youtube.com/watch?v=nawh0mJX264