Such products offered must be of good 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. BIGGIES Boxers Underwear is all about the freedom. Low price doesn't always mean low quality, but it could mean a challenge to high-end products.+5 For example, L Automobile manufactures high standard cars. 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. IKEA continuously works on the design and construction to find out if any change can help it improve quality and bring prices lower. Another word for low-quality. That’s often the initial response when people hear of the $30 cell phone that Motorola is building for emerging markets. Facebook Tweet Pin LinkedIn Email. Find more ways to say low-quality, along with related words, antonyms and example phrases at Thesaurus.com, the world's most trusted free thesaurus. 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. Notice boards are a useful addition to any office, classroom, church, business, or home as they make sharing information simple. Search. 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. 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.. See more. HandmadePiece Support . 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! 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 … 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. 802. In order to create a value company should focus on providing a reliable product at a reasonable price to the consumer. Another word for low-quality. “If a consumer has spent the morning struggling with finances, ‘value’ is … An affordable basic GSM cell phone (with text-messaging) is what most individual BOP customers need. Reviewed August 31, 2010 . What we’re seeing in the vodka market is that high price does not necessarily mean … The researchers also suggested that the opposite was true for low-price products. Research indicates the real economic threat China poses It all depends on the wearer. What Is the Theory of Scaling Social Change? However, when cost is an organization’s main goal, as explained above, the quality usually ends up the lowest priority. What does at a low price mean? 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. “If a consumer has spent the morning struggling with finances, ‘value’ is likely to dominate that consumer’s thoughts for the rest of the day, and low priced products will be attractive because the ‘low price = value’ belief is likely to guide decision making,” explained Posavac. Does your low price mean substandard quality? Your email address will not be published. Learn more. 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. Some shoppers may perceive products with a low price as a good deal while others deem a bargain as cheap quality. 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. Low price doesn't always mean low quality, but it could mean a challenge to high-end products.+5 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. So, to answer the question, low cost doesn’t necessarily have to mean low quality. 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.. We reveal it all here! 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. Price doesn’t determine quality. In the case of price, most people simultaneously believe that low prices mean good value and that low prices mean low quality. ), (MORE: Timing It Right: A Sweet Spot Emerges for Snagging the Best Holiday Gift Deals). 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. 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. You need to consider your needs carefully in order to get ‘more bang for your buck.’ When the time comes for reselling, a good value for the price will guarantee a better return on investment than expensive products.”, (MORE: Apocalypse Marketing: Top 10 Products & Services for the End of the World). It appears as if we’re highly susceptible to manipulation—or “priming,” if you will. 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. Location excellent, pool was clean, rooms were clean and comfy. How, then, do consumers come to one conclusion or another? 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 … cheap meaning: 1. costing little money or less than is usual or expected: 2. 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. Seems to trip for no reason. When choosing a product we don’t know much about, we automatically assume the highest-priced item is also the highest quality. Does a Low Price Mean Good Value or Bad Quality? Pricing does not need to be high for higher positioning. Asda says low prices pledge is winning over customers. No, the truth is that sometimes it does, but not always. 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. Low-rate definition, to place a low value on: a policy of low-rating most modern artists. 3 comments. While some shoppers pounce on rock-bottom prices without hesitation, others are tentative concerning “doorbusters” and eye-popping 80% off deals. “If a consumer has spent the morning struggling with finances, ‘value’ is … GFCI is a bit too sensitive on the hardwire terminals. 5. Expensive things can break right away and budget options can also be very good 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. 802. 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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.” “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 … 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. If you're a boxer brief or 'tighty whitey loyalist', we at BIGGIES Boxers Underwear say to you: Al Martino - "To each his own". Furniture prices are something that IKEA has always kept trying to bring down. Actually, sometimes they don’t. The price quality approach of positioning uses the relation between price and quality such that it optimally prices a product according to the quality of the product to keep the product higher in the customers mind. Review of Microtel Inn & Suites by Wyndham Winston Salem. 3.0 out of 5 stars Does low price equal low quality? Yet the study’s experiments show that consumers can often be coaxed into focusing more on value or quality. Breakfast was very continental. 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. 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). James T. Rothery Platinum Author | 155 Articles Joined: November 13, 2008 Does a Low Used Server Price Mean Lower Quality? Seems to have plenty of power for fridge and microwave. 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