The only reason why i supported the idea that price does relate to quality is because of the fact that in todays world with the internet offering loads of information and comparative analysis on products, it will be a brave marketer who prices his product higher. And with a higher price comes an automatic tag of quality. How often have we heard of the saying "if you pay peanuts you get monkeys". This is true for products also wherein a cheaper product would auotmatically mean low quality. This is the case in todays world only because of an alert consumer whereas take the case of the early eighties when technology was jusgt about breaking new grounds, at that time everyone got away with the price because quality was not of paramount importance since anyway the technology was new. But in todays world pricing a product higher does not mean automatic success at the market place. An expensive product would most definitely be judged on higher quality parameters. Many a times we ourselves have gone in for an expensive product because we didnt want to take chances with a lower priced one. Instead of commenting on the example provided here, i would quote the example of Sony in the the same category - Laptops. A sony laptop is atleast priced 40% higher than even an HP or a Dell. And it indeed scores on its performance to justify its price tag. Same with a MAC which are almost 100% costlier to any IBM laptop but far more effective. But changing the trend slowly are the korean and taiwanese manufacturers who through stornger research ar eable to come up with better quality products at reasonable rates. Look no further than a Samsung which is cheaper than a Sony in any of the categories both are present in.
By
Jaygopal Raghavan, Marketing Manager, Landmark Group
| 04 01 2010 18:29:07 +0000
- Rolex
- Rolls Royce
- Harley Davidson
- Merc Benz
need anymore?.... price sometimes does mean quality too! and more over the SERVICE!!
By
Varun , Ideator
| 03 19 2010 12:07:52 +0000
With increased info flow thru web/online sales and feedback the difference in prices between brands are shrinking. Brands with good support infrastructure like HP, ACER, etc are fiercely fighting for market share. Buyers need to be aware of warranty terms and technology updates. Core i3/i5 based systems are found cheaper than models with previous C2D CPUs. Why buy old tech C2D with DDR2 when Core i3/i5 with DDR3 and better graphics is available cheaper. There is no need now to pay any premium for BRANDS
By
Prasad PN, Consultant, Trainer
| 03 19 2010 11:54:42 +0000
The very same example of Acer Laptops stated above. Compare this directly to HP Pavillion series of laptops which have higher price, lower config and lower quality!
By
Arun Raj, Idea Engine. Product Development
| 03 18 2010 12:41:55 +0000
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I also disagree that high price ensures better quality, reason is very simple that it's not only quality which encourage a product to be set at high price, there are different parameters including the brand image market reputation & services which actully contributes heavilly to price. there are products those are economical in price but delivers very good qyality & services.
By
Brij Kishor Mishra, Product Specialist at Alcon Laboratories India Pvt Ltd.
| 03 20 2010 17:01:04 +0000
While there is definitely something called 'price-related quality perception' in marketing I agree with Purvi that not all products/services that are expensive would necessarily be of high quality. Many products have a vanity value and very low utility yet are high priced.
By
Azhar Kazmi, Professor, King Fahd University of Petroleum & Minerals
| 03 20 2010 16:47:38 +0000
Price of a product depends upon quality, design, service, emotion, brand and other parameters, the prices vary from company to company, there are few questions to be answered 1. Why does Acer keep changing its prices frequently without changing much design 2. What is the benchmark for its price, possibly its offering a large discount directly, whereas other companies offer discount after market price 3. High price never means a better product it means only to target particular customers
By
rasik upadhye, dyputy manager, idbi fortis
| 03 20 2010 08:22:19 +0000
High price is not just about selling a product and washing away hands, it is to do after sales service and support to the customer. This investment is shifted to the customer as unit price - may it be laptops or cars or anything. As many marketing guru's say; a product is something which can be replicated, but the value added services are something which will remain as USP and also as competitive strategy for the organisations.
By
AKNR Chandra Sekhar, Manager-Release Management, ANZ Operations and Technology
| 03 19 2010 18:20:41 +0000
No not necessarily.. HIGH PRICE ALWAYS INDICATES BETTER QUALITY..... The REASON Being... The LOW PRICE OFFERING IS A EXCELLANT MARKET PENETRATION STRATEGY..... This basically used for Increasing Market Share and plays a Vital role in Maintaing PLC of a Product..... This is basically used to Whipe off the competitors and gain the Market Shares in a great extent.. The Acer must be using this Strategy for Market Penetration and creating a Image of an ORGANISATION OFFERING VALUABLE PRODUCTS WITH AFFORDABLE PRICES.... And Yes, sometimes Equation also stands TRUE for HIGH PRICE BETTER QUALITY.. The reason being WITH BIG COMPANIES ONE HAS TO PAY VALUE FOR BRAND, COST TOWARDS HUGE ADVERTISING EXPENDITURES, HIGH OVERHEADS AND SPECIALLY PRODUCT POSITIONING & PLACEMENT IN PORTFOLIO/ MARKET etc....... But... The case is not always..
By
Sampanna Shastry, Deputy Manager- Marketing & Sales, Arani Power Systems Ltd
| 03 19 2010 12:40:25 +0000
NO. HIGH COST IS NOT RELATED TO HIGH QUALITY. For Your information All major branded laptops & PCs parts are manufactured & assembled by major 5 ODMs in the world mostly located in Asian region. (Orginal Developer & manufactures).ODM will make laptops & PCs based on the order from HP, Dell & other companies with thier badge, Most of the parts are common for all brands with only some cosmatic changes. Cost will vary based on Brand name , sales & service network estabilished by the respective companies.Quality is almost same since all performace parts are coming from same suppliers. I am using Acer emachines brand laptop in Europe since last year.There is no quality problems till now. I got this laptop for half of the price of same configration HP Brand.e machines is low price and scores lower customer complaints than HP & Dell in USA now introduced to europe and plan to enter in Asia with Acer sales & service network. Acer plan to acquire all low cost brands across the globe and they try to become world No.1 in PCs & laptops. They are using their 30 years rich experience in PC market to improve their subsidaries all over the world with Acer Standard quality benchmark level. Acer Incorporated is a Taiwan-based multinational computer technology and electronics corporation that manufactures desktop and laptop PCs, personal digital assistants (PDAs), servers, storage devices, displays, and peripherals, and provides e-business services for business, government, education, and home users. Acer Group has its headquarters in Xizhi, Taipei County.[ Acer ranks No.2 for total PCs and notebooks.A profitable and sustainable channel business Model is instrumental to the company's continuing frowth, while its multi-brand approach effectively itegrates Acer, Gateway, Packard Bell and eMachines brands in worldwide markets. Acer announced plans to acquire Fujitsu PC division.
By
Shankar Ganesh G P, Team Leader -(Technical)-Product Design & Development
| 03 19 2010 12:02:45 +0000
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