You as a consumer, need to ask the right questions and know exactly what you are getting for the price quoted. When choosing a product we don’t know much about, we automatically assume the highest-priced item is also the highest quality. Some shoppers may perceive products with a low price as a good deal while others deem a bargain as cheap quality. “Most people simultaneously believe that low prices mean good value, and that low prices mean low quality,” Steve Posavac, a professor of marketing at Vanderbilt University and one of the study’s authors, explained via e-mail. GFCI is a bit too sensitive on the hardwire terminals. Our frame of mind affects which naïve theory we use to fill in the knowledge gap—and therefore also affects how we decide to buy stuff or skip it. Low-profit margins are a great way to attract cost-conscious customers because you’re able to offer them a low price, and you aren’t concerned with running through your customer pool. low-priced - that you have the financial means for; "low-cost housing" affordable , low-cost cheap , inexpensive - relatively low in price or charging low prices; "it would have been cheap at twice the price"; "inexpensive family restaurants" If a shop or restaurant is cheap, it…. A high product price, on the other hand, was viewed as an indication of poor value. When it comes down to it, there is none. Does a Low Price Mean Good Value or Bad Quality? What Is the Theory of Scaling Social Change? What does at a low price mean? Whether a shopper views a low price as an indication of shoddy quality or good value depends on many factors. 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. But when the product or service is designed to meet the real needs and circumstances of bottom-of-the-pyramid (BOP) communities, low price can also mean superior quality. It’s based around a new, nanotechnology filter that has passed US EPA and California quality standards and will remove bacteria and viruses that pass right through the Brita filter in your refrigerator?its better and it needs to be, for the billion + people without safe drinking water. Low-rate definition, to place a low value on: a policy of low-rating most modern artists. Or a nifty little home water purifier that can supply a family’s needs for $10 a year (to be launched in India this summer). First, you use price to help you judge quality. It may have fewer settings and be made of cheaper materials. Key words: competitiveness, comparative price level, statistical analysis Introduction Generally speaking, in the most common and popular understanding, to compete equals to guarantee low prices. Low Price Does Not Mean Poor Quality. For example, L Automobile manufactures high standard cars. low-priced - that you have the financial means for; "low-cost housing" affordable , low-cost cheap , inexpensive - relatively low in price or charging low prices; "it would have been cheap at twice the price"; "inexpensive family restaurants" This is important information for the end consumer, of course, but it’s also vital for the vendor or importer sourcing products from factories to keep this in mind. Julie A. Evans Platinum Author | 3 Articles Joined: October 21, 2008 Discount Maternity Clothes Does Not Mean Low Quality Outfits 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.” In: Writing service. The researchers also suggested that the opposite was true for low-price products. Does Price = Quality? Low price doesn’t always mean low quality, but it could mean a challenge to high-end products. You could get a quality refrigerator, you could get a low priced refrigerator, or you could get the best value refrigerator. See the Red Herring article examining Motorola’s low cost handset strategy. DOES LOW PRICE MEAN HIGH COMPETITIVENESS? Yet the study’s experiments show that consumers can often be coaxed into focusing more on value or quality. Consumers are often naturally skeptical of prices that are below the market average, believing that a deal that looks “too good to be true” usually it is not. Another word for low-quality. “Most people simultaneously believe that low prices mean good value, and that low prices mean low quality,” Steve Posavac, a professor of marketing at Vanderbilt University … The research, as well as years of experience, indicates that consumers are thoroughly primed to anticipate amazing values during the peak holiday shopping months of November and December. One group read an article that contained the following passage: “Remember that more expensive does not always mean better. Consumers who are subtly reminded of quality in an ad for wine tend to view pricey wine more favorably over an inexpensive alternative. Our service is an illustrative example. The highest price does not always mean the highest quality, therefore, assessing a purchase based on a product or service’s ability to meet business requirements and successful past performance are vital to ensuring quality takes precedence over the enticement of a low price. High–low pricing (or hi–low pricing) is a type of pricing strategy adopted by companies, usually small and medium-sized retail firms, where a firm initially charges a high price for a product and later, when it has become less desirable, sells it at a discount or through clearance sales.. Does your low price mean substandard quality? ... "We're redefining what real value means and showing that price and quality aren't mutually exclusive." As Clark insightfully advice, “Price is often a proxy for quality, and when you put yourself at the low end, it signals that you’re unsure of your value — or the value just isn’t there. A common assumption is that a higher price means better quality and a lower price means cheaper quality. Your email address will not be published. No hair dryers in room but for the price I expected to be missing a few thrills. As Clark insightfully advice, “Price is often a proxy for quality, and when you put yourself at the low end, it signals that you’re unsure of your value — or the value just isn’t there. The forward gallop of undergraduate fees could be because nearly everyone rushes to the price wall because it is there. Skip to main content.us. Apocalypse Marketing: Top 10 Products & Services for the End of the World, Timing It Right: A Sweet Spot Emerges for Snagging the Best Holiday Gift Deals, BIGGIES vs Harbor Bay Customer Testimonials, Understanding NUTRITIONAL SUPPLEMENTS And Foods Not Good For You, 5G Radiation Health Dangers and 11 Reasons To Be Concerned. No, definitely not. He said moves Asda made 12 months ago to invest in price and quality were paying off and that it is a strategy he expects to “win” in the long term. Does a Low Price Mean Good Value or Bad Quality? The ceiling seemed a little thin. That’s a fairly rational approach. The answer might be: the company that competes on price. But these two beliefs … Size: 3000W Verified Purchase. Information and translations of at a low price in the most comprehensive dictionary definitions resource on the web. Does your low price mean substandard quality? Kindle Books: Does Low Price Mean Low 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. Seems to trip for no reason. 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. That’s often the initial response when people hear of the $30 cell phone that Motorola is building for emerging markets. NO! Pricing does not need to be high for higher positioning. What we’re seeing in the vodka market is that high price does not necessarily mean high quality, and low price doesn’t necessarily mean low quality. Or the $185 internet access device (a PC, except that you can?t load new software on it) that AMD is shipping to India and the Caribbean. Facebook Tweet Pin LinkedIn Email. HandmadePiece is one of the few online galleries who offer digital photo preview before shipment as well as 60-day money back guarantee upon receipt. Whatever is going on in our heads can impact how we perceive a price, and whether or not we decide to buy something. And the water purifier? More competition between firms should cause better alloca- 04/17/2012 03:04 pm ET Updated Jun 17, 2012 As a writer, I spend a lot of time reading through and participating in forums on various sites, not just to connect with other writers but also to keep up with readers who are, of … “If a consumer has spent the morning struggling with finances, ‘value’ is … March 30, 2015 by Sal Catanese Sr. Leave a Comment Why can’t roofing industry professionals understand that old technology and outdated products that have outlived their usefulness are no longer really considered competition but are a target for replacement? Laptop Selling price – Does Affordable Laptops Signify Bad High quality? Once an item has been designed it does not mean that its prices cannot be lowered in the future. November 19, 2012 Share on facebook Share on Twitter Pin Story Print Story. He said moves Asda made 12 months ago to invest in price and quality were paying off and that it is a strategy he expects to “win” in the long term. Low price does not mean low quality! According to research from Washington University in St. Louis, producers of lower quality products actually have better prospects for gaining market share and improving their bottom line. Providing good value does not amount to selling at low price. HandmadePiece is one of the few online galleries who offer digital photo preview before shipment as well as 60-day money back guarantee upon receipt. 5. 2016 © Biggies Boxers Corp. All Rights Reserved, How To Avoid And Prevent Plumbers Crack Embarrassment, Human DNA found in hot dogs... 10% of veggie dogs made with meat... but private genomics lab censors brand names to appease food industry. “In contrast, suppose a consumer has just had an experience with a product failing because of poor workmanship (e.g., a lawnmower, or a dishwasher). The highest price does not always mean the highest quality, therefore, assessing a purchase based on a product or service’s ability to meet business requirements and successful past performance are vital to ensuring quality takes precedence over the enticement of a low price. 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. March 30, 2015 by Sal Catanese Sr. Leave a Comment Why can’t roofing industry professionals understand that old technology and outdated products that have outlived their usefulness are no longer really considered competition but are a target for replacement? Actually, sometimes they don’t. Wondering how Decathlon is able to offer you high quality and technical products at incredibly low prices? 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. See more. Notice Boards: Low Price Doesn't Mean Low Quality. It all depends on the wearer. Try Prime. 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. (Come to think of it, wine drinkers are especially prone to making their buying decisions for all sorts of odd reasons. Quality – what does it really mean –clearly different things to different people would seem to be the answer – consider the following famous quotes –. HandmadePiece Support . The AMD device not only boots quickly, but is intended to have much lower support costs than a normal PC?a critical feature in communities where technical talent is scare. Some shoppers may perceive products with a low price as a good deal while others deem a bargain as cheap quality. Market analysts have discovered something surprising about human nature. More about these examples in my next post, but I think we?re seeing the beginnings of a wave of sophisticated technology built into products designed explicitly for low-income markets, and that will provide superior quality at very low prices. Such products offered must be of good quality. IKEA continuously works on the design and construction to find out if any change can help it improve quality and bring prices lower. I wouldn’t say so. The AMD device not only boots quickly, but is intended to have much lower support costs than a normal PC?a critical feature in … Low quality threatens the high end.What company wouldn't attribute its profits to the quality product it produces? Meaning of at a low price. When it comes to medical treatments a lot of people is really concerned about the relationship between price and quality, so if they hear that medical care is less expensive in other countries they … High–low pricing (or hi–low pricing) is a type of pricing strategy adopted by companies, usually small and medium-sized retail firms, where a firm initially charges a high price for a product and later, when it has become less desirable, sells it at a discount or through clearance sales.. Learn more. Likewise, high-cost does not equal high-quality. Posted on October 11, 2016 by Brandon. "In the case of price, most people simultaneously believe that low prices mean good value and that low prices mean low quality. Breakfast was very continental. We provide with writing, re … Reviewed in the United States on March 11, 2019. It is always hard to believe that something good may actually cost within reason. 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Asda says low prices pledge is winning over customers. “Most people simultaneously believe that low prices mean good value, and that low prices mean low quality,” Steve Posavac, a professor of marketing at Vanderbilt University and one of the study’s authors, explained via e-mail. How, then, do consumers come to one conclusion or another? ... "We're redefining what real value means and showing that price and quality aren't mutually exclusive." About the Author Adam is the Digital Marketing Coordinator at e3 Diagnostics. Generally speaking, the phrase is used pretty much to justify a higher markup. When we choose a product or service exclusively on price, we have to ask if the low price = poor quality as people end up always paying more in the long run, as the lowest price tends to force shortcuts at some point, especially in relation to products that are manufactured. 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