Title: Higher Price, Better Product? | Living Rich Cheaply
Headings: Higher Price, Better Product?
Higher Price, Better Product?
Content: At times, the cheap products that I’ve bought may breakdown or not work as I had hoped. And here is what most people say to me: “You get what you pay for!” “Buy it right or buy it twice”
Many people think that if they pay more for something then it will be better than something with a lower price tag. According to the Journal of Consumer Research, a high price indicates either bad value or good quality, whereas low price indicates either good value or poor quality. It goes on to say that consumers usually do not have all the available information on a product so they use informal and common sense explanations to make that determination, such as price. I think generally speaking, the majority of people think that the price of an item does often imply quality. It costs more to make, so it is priced higher. In an article in the Wall Street Journal, Neil Blumenthal, an entrepreneur sets out some rules for pricing: Price is ultimately what customers are willing to pay.