Dear Compromise, Let’s reframe the choices you have from just two to three. Does a Low Price Mean Good Value or Bad Quality? simultaneously believe that low prices mean good value, and that low prices mean low quality, Whatever is going on in our heads can impact how we perceive a price, and whether or not we decide to hire a Pro. the perceived value of the product or service you are selling meets with or exceeds your customers expectations for what they will receive for the cost. Are you in the sector for a model new laptop? Unfortunately, these shortcuts may not be be initially apparent. (Come to think of it, wine drinkers are especially prone to making their buying decisions for all sorts of odd reasons. Whatever is going on in our heads can impact how we perceive a price, and whether or not we decide to buy something. 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. Generally speaking, the phrase is used pretty much to justify a higher markup. As the season of ubiquitous “bargains” nears, it’s worth trying to understand why sometimes a low price causes shoppers to bite, and why other times consumers are scared off by an item because its price is just too-too cheap. Some shoppers may perceive products with a low price as a good deal while others deem a bargain as cheap quality. Higher prices do not always mean better quality but like I have heard “you get what you pay for”, does come to mind as well. A common assumption is that a higher price means better quality and a lower price means cheaper quality. According to the Journal of Consumer Research, a high price indicates either bad value or good quality, whereas low price indicates either good value or poor quality. The final choice is the best one but getting to the compromise will be the challenge. For example, in one experiment, participants were asked to read an article from a home-improvement website with tips on how to choose hardwood flooring. HandmadePiece Support . The phrase in the header which has been adopted as a mantra by many companies – “The bitterness of poor quality remains long after the sweetness of low price is forgotten.” No gallery would choose to offer this service without outstanding quality. Many a Russell Group university undercuts a post-1992 in the low-priced world of postgraduate taught study. Likewise, high-cost does not equal high-quality. Does your low price mean substandard quality? In a previous study, consumers were more likely to say they liked a wine more and were willing to pay more for it when the bottle featured a hard-to-pronounce name. 5. An affordable basic GSM cell phone (with text-messaging) is what most individual BOP customers need. No, definitely not. cheap meaning: 1. costing little money or less than is usual or expected: 2. With the recent Lumber Liquidator’s scandal of poor quality, Chinese-made flooring, there is a lot of low-price fear circulating. Low price does not mean low quality. A forthcoming study in the Journal of Consumer Research tries to get to the heart of the issue, exploring what is described as “naïve theory.” Basically, because consumers can’t know everything about a product, we fill in the gaps with our own (naïve) theories to help us make decisions about whether the cheaply priced product is a terrific deal or a piece of junk. 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