What is the definition of a good product? Where do you buy it? Is it expensive or not? These are good questions to consider before buying. Especially when you’re having a tough task making a decision whether to take the cheaper one or the expensive one.
People often think that expensive products have a better quality than lower cost products. Sometimes it’s true but I can guarantee that’s not the case every time. Companies make huge profits with “luxury” products because we are a bit dumb and buy these products. For example, in perfume or handbag industry the products they make are quite cheap to manufacture but when these products are transported to stores the price tag on them rises vastly. Especially if your purse is manufactured by a famous brand. Another good example is the “Apple people” who buy those expensive phones and laptops no matter what. Someone could ask, is that worth it?
So what is the reason people think that high price means high quality? I found an article that said the reason is that people simply don’t have enough information about the product. So their mind tells them that the expensive product must have a better quality than the cheaper one. “Why would it be so expensive in the first place?” People are somehow afraid to buy a lower-cost product because they fear that they will have to buy another one because the cheaper one is going to break soon. It seems that people have tough time understanding that a cheaper product can have at the same time a good price and a good quality.
So how companies use this knowledge as an advantage? The answer is, premium pricing. Shortly it means that a company puts a higher price on a product and expects customers to think it’s somehow better than the other ones on the market (better quality or reputation). For example, Apple uses this kind of pricing as a marketing tool. Also many different clothing (Louis Vuitton) and car companies (Rolls-Royce) use this as an advantage.
In my opinion it is an odd and naïve way to think that high price equals good quality. We have learned to think that expensive price means good quality. And at the same time low cost means low quality but it also means good value for the customers. I think it’s a good idea to think before you buy and do some research about the product you are going to buy. That can occasionally save you some money.