Effect of price on quality

             Quality is the concept used nowadays in the trade of any good. It is defined by international standards ISO 8402 as "The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs." Quality is related to many products specifications such as priced, brand name and many others.
             In this paper, we are going to talk about the effect of price as a determinant of quality. Price is the amount of money/or other items with utility needed to acquire a product. Price is significant in the economy, in the consumer's mind and in an individual firm. At the retail level, a small segment of shoppers is interested primarily in low prices, and another segment of about the same size is indifferent regarding price in making purchases. Some companies use high prices for their products in an attempt to reflect high quality.
             In what follows, a number of previous researches about the topic in our hands are summarized.
             In their research "Comparing fixed price and discounted price strategies: the role of affect on evaluations", Suri, Manchanda, and Kohli in 2002, examined the effect of fixed pricing and discounted pricing on consumers' affect and evaluation of products. The study aimed to test three hypothesis regarding pricing strategies. In order to test the hypotheses, an experimental design was used by choosing a product (Oxford shirt) and testing it using a total of 34 subjects to do their experiment. They were given the products with some information regarding the product and they were asked to evaluate the shirt with the hypothetical brands according to the price information provided. The next steps after letting the subjects evaluate the product, they were given nine dependent measures and were asked to state how they took their evaluation decision according to these nine measures. The subjects in a third step were asked to respond to three dependent mea...

More Essays:

APA     MLA     Chicago
Effect of price on quality. (1969, December 31). In MegaEssays.com. Retrieved 06:09, March 29, 2024, from https://www.megaessays.com/viewpaper/20992.html