While there are times when it makes sense to go for quality over price, in a few instances, you're better off saving your money and purchasing the less expensive option. In other cases, you might pay more now, but you'll end up saving money in the long run.
The conventional wisdom of managers in the US dictates that improving product quality will increase the cost of making the product which will either increase the price or reduce the profits. Shows that improving the quality of a product or service will not necessarily increase its manufacturing cost.
While higher prices can be true for products made with higher-quality (read: more expensive) raw materials, a high price tag should not be an indication for consumers that something has better quality than those with lower prices.
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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 Cost of Quality can be divided into four categories. They include Prevention, Appraisal, Internal Failure and External Failure. Within each of the four categories there are numerous possible sources of cost related to good or poor quality.
Improved Quality, achieved through continuous improvement of process has been able to reduce the total Cost function in the long run. ... This system has the ability to track Quality related issues in real time, assign priority to Quality issues etc.
A study shows that marketers of relatively high-priced products should consider keeping prices high, as many consumers associate high price with high quality. ... "It's because when people prefer to buy local, they more frequently base their decisions on price as a perception of quality."
Conclusion. The findings indicate that for many products the relation between quality and price is weak; hence, for many products, higher prices appear to be poor signals of higher quality. ... It has been shown that higher unit prices may signal non-economical packages rather than higher quality.
Quality clothing, while more expensive, is inherently made better. From the higher-end fabrics that last longer, to the stitching (higher quality clothes have more stitches per inch to help the piece hold better over the years), clothes you spend more on are designed to last.
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