Is price a determinant of quality?

Is price a determinant of quality?

Results of the research indicate that price is one of factors reflecting the quality. (2015) Position of Price in Determinants of Quality of Products (Case Study). Journal of Service Science and Management, 8, 149-160.

How does quality relate to price?

If a product’s quality exceeds the expectation they have for a given price, the customer will be duly impressed and certainly satisfied. This thereby increases the perceived quality (as generally higher prices equate to better quality), which can also improve customer satisfaction.

What is price determinant?

However, the prices are not determined only by the forces of demand and supply. Other factors such as the price of substitute goods, price of related goods, government policies, competition in the market, etc. also play an important role in the determination of the prices.

Which is more important quality or price?

The quality of the product (77\%), its price (53\%) and the brand name or the parent brand (34\%) are notably more important when deciding what to buy, according to YouGov’s latest survey. The survey was conducted on 1024 sample of urban Indians across 200 cities in the country.

What are Determinants of quality?

These are the organization culture, design, leadership for quality, physician involvement, quality structure and technical competence.

When the price of a good service or resource decreases?

For example, when prices decrease, the purchasing power of income increases and consumers are able to purchase more goods, services, or resources. The effect that a change in the price of one good, service, or resource has on the demand for another.

Why is price determination important?

Pricing is an important decision making aspect after the product is manufactured. Price determines the future of the product, acceptability of the product to the customers and return and profitability from the product. It is a tool of competition. 1.

Why price is important than quality?

Consumers generally rely more on price as a reflection of quality when they see the purchase as being risky, when they have low self-confidence and lack product experience and when there are no criteria for judging the performance of the product.

What are the determinants of quality of a product?

Determinants of Quality. Quality of conformance: After producing it that product matches with the design, and then we can call it at quality of conformance. 3. Ease of use: It means that how easily the product can be used. It is another intention of the producer. Object is that now easily consumer can use the product.

Do consumers use price to judge a product’s quality?

“Consumers tend to use price to judge a product’s quality when their local identity is most important to them,” Janakiraman said. “When promoting high-priced or branded products, marketers can situationally activate consumers’ local identity.

Are higher prices an indicator of higher quality?

In fact, higher prices are taken as an indicator of higher product quality; specially when the product is new and it is difficult to measure product benefits objectively. While pricing a product, the important factors to be considered are usually the following:

What are the important factors to consider when pricing a product?

While pricing a product, the important factors to be considered are usually the following: The price of the product must be so fixed as to recover the full cost of production from the price charged; otherwise all production activities will have to be stopped, in the long-run.