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Price-Quality Relationships ACR

The introduction of a high-priced, low-quality brand would attract type 3 consumers. Type 3 consumers would be attracted to the new brand because they would incorrectly associate the new brand's high price with a high level of the quality. We see from equation (8) that a decrease in n3 results in a lower quality for the new brand. Equation (9

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Price quality matrix - Relationship between price and …

2020-7-2 · As you can see in the price quality matrix, whether to keep your prices high or low can be decided on how the customer perceives the competition.If the competition is offering high value products, at a high price, then you can penetrate the market by having a lower price.This will affect your brand recognition, but you can definitely penetrate the market better.

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Does a Low Price Mean Good Value or Bad Quality? …

2012-11-14 · Whether a shopper views a low price as an indication of shoddy quality or good value depends on many factors. As the season of ubiquitous "bargains" nears, it's worth trying to understand why sometimes a low price causes shoppers to bite, and why other times consumers are scared off by an item because its price is just too-too cheap.

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