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Does a Low Price Mean Good Value or Bad Quality? | TIME

Nov 14, 2012· “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.

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May 02, 2011· 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. …

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The best cheap digital cameras can, however, yield photos of good quality for using on the Internet and for making small prints. Before you automatically dismiss a sub-$100 digital camera because of its lack of features and power, keep in mind that cameras with very similar specification lists to these cameras were probably $300, $400, and even $500 cameras half a decade ago.

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Price has always been, and will always be, a significant indicator of quality, so making a high-quality product affordable and valuable is a fine line to walk. One way to do it well is to deliver the same product at a lower cost, and be very transparent about how you did it.

Price-Quality Relationships by Steven M. Shugan

At low prices, small changes in price correspond to large changes in quality. At higher prices, small changes in price correspond to smaller changes in quality. ... the unfamiliarity argument could only be used for a new product or a durable good whose sales depend mainly on first purchases. ... price-quality relationships exist. It is only ...Published in: ACR North American Advances · 1984Authors: Steven M Shugan

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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 ...

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