Between Product Price or Quality- what is better?
Choosing a better option between a price and quality is depends on the customers. Some customers may choose price over quality and others may choose quality over price. It depends on their needs and what they are looking for. But for a company that is building a brand, pricing may be secondary because the quality ensures that customers will be going to come back to the brand. A few customers are loyal to the brand because they find the quality of the product or service up to the mark. Setting a competitive price will be helpful for a company. They can also offer a special offer or deal to attract more customers to the brand. Most of the time, customers do not compare the price; instead, they look for a reliable, trustworthy, convenient, and enjoyable experience with the brand. It can be possible only when the brand is offering a great quality of products to its customers. Quality helps in establishing confidence in the customers. So, quality is better than price.
The Perceived Price
Perceived price is that price which a customer is ready to pay for the value it is getting from the product or service. It is used as an important marketing strategy to price a particular product in the market. Marketers always try to place a product in such a way that it will make the product unique to the customers.
Customers compare the quality that they derive from the product or service, so marketers tend to show the customer the true value they can drive from the product. For example, a customer wants to purchase an almirah. There are so many options available at different prices with different qualities. But the customer chose the wooden almirah because the customer found it spacious, strong, water-resistant, etc. These qualities were enough for a customer to spend a large amount on that almirah. Here, the customer is not considering cost but the quality of the product. The valued customer can derive from the quality of a product.
The balance between Price and Quality
The balance between price and quality is always hard for marketers. Pricing is one of the marketing mixes that continue to haunt companies because it plays an important role in the market.
Pricing can make or break a brand if not done in the right way. While deciding on a pricing strategy, many elements play an important role. Over some time, research has found that pricing is a psychological component that can manipulate a customerâ€™s decision. If the price of the product or service is high, then a customer would believe that there must be high-quality value. This is because a customer only spends on that high-value product or service. A customer expects high quality from a high-paying product. The opposite can happen if the price is low and quality is high the customer might think the product will not give enough value. Thatâ€™s why there must be a balance between the price and quality that help a company charge the right price for the right quality.
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