Price as a measure of quality

[vikram chawla]

Price as a measure of quality

Many a times price is taken to be the measure of quality for the products...what do you think about this consumer behaviour..??

and how can marketing people work this to their advantage..?

 

[Kalpana Heliya]

Price as a measure of quality

Many a times price is taken to be the measure of quality for the products...what do you think about this consumer behaviour..??

and how can marketing people work this to their advantage..?

Price and quality are directy proportional..in majority cases.

its a general notion among customers, lot of advantage taken by the marketers and they can leverage this fact to a great extent.

big brands charge a premium on their name/quality

 

[dimpy.handa]

A number of economists have argued that this influence of price on quality is important in labor markets and have called the prices or wages in these markets "efficiency wages." The wage is efficient not in the sense of economic efficiency, but in the sense that it is the best price from the viewpoint of individual buyers or sellers in the market. Price and quality relationship is also a huge factor to be considered while branding a product.