There exists a correlation between the price of a product and its quality. Despite their correlation being low, most customers tend to use the rule while making decisions. I am interested in establishing the truth behind this theory since it is deemed that the price of a product is mostly determined by either the quality or the quantity of a product. The pricing of a service or product based on quality dictates that a high-quality product or service ought to have a higher price. On the other hand, based on the quantity, the price of a product tends to be high if the quantity of the same product is high independent of the product’s quality.
After conducting extensive research in relation to product quality and price I noted that the quality of a product or service is fundamental in determining the price of the product. In the fast-food industry, for instance, I detected a positive quality relation whose significance was relatively small. Based on this analysis it is appropriate to affirm that consumers believe that a high price is an indication of the high quality of a product. However, this belief is highly controversial despite the correlation being identified. On this note, it is accurate to assert that prices are greatly determined by the quality of a product since consumers have a perception that dictates that a high price is a signal for high quality per unit product. But how factual is this?
Tests and analyses of the effect of service quality and price have a great impact on customer satisfaction. The quality of a product plays a fundamental role in creating a positive relationship between the product and the customers. The price of the product influences the satisfaction of the customers. These two principles create a correlation between the quality and the price of a product. The satisfaction of the customers which is highly determined by the correlation between the product quality and price also significantly facilitates the loyalty of the customer. This also applies to the service industry. For instance, in the airline industry customers tend to follow services that are of high quality independent of the prices. Evidently, isolating the quality and product price indicates that high price implies high quality.
In some market environments, the product exhibitions show variability in product preferences. This also implies that consumption patterns vary widely which is mainly influenced by the diverse nature of the market. Customers, therefore, tend to discriminate products based on quality. An appropriate scenario, in this case, is the rice market environment. There are numerous consumers whose preferences vary which mainly showcases the difference in their consumption patterns. The study evaluates the variation in the prices of rice and the difference in rice grades. In the study, it is concluded that the color of the rice differs which implies a difference in quality. These factors consequently determine the difference in price values. In this case, the price of rice is evidently influenced by the grade consequently the quality.
Maintaining acceptable product quality is widely recognized in the practice of human resources as well as supply management processes. In the case of a closed-loop in the supply chain management manufacturers ought to adopt a strategy that ensures that products retain decency in the quality to ensure it is acceptable to the customers. In this case, the management has to ensure that they acquire high-quality supplies to ensure the development of high-quality products. However, this has a significant impact on the prices of developed products. Despite this having a significant impact on the profit margins, the major concern is the consumers and guaranteeing their satisfaction. The high cost of ensuring the high quality of a product implies a high price of the resultant product rice. On this note, it is concluded that the quality of a product is a key factor in determining the price of the product.
The price is also dependent on the quality of service. On this note, the quality of health services is analyzed with reference to its impact on the price of the service. It is noted that high-quality information in the nursing industry has a significant impact on the price of the service. People make quality decisions based on the information provided which also has an impact on the quality of the services. In addition, most people have the belief that health centers whose nursing services have high price rates imply that their nursing services are of high quality in comparison to the contrary. This assertion is made after the various analysis is conducted. The price is dependent on the quality of the service which in turn is a consequence of the policies put in place for a fiscal year in the nursing station. Based on the information gathered, the quality of service is fundamental in determining the price of the service.
The price of a product or service is highly dependent on the quality of the product. Critical evaluation of the various publications proves that high-quality products or services tend to have high prices. Also, average and low-quality products are priced based on their quantity. It is, therefore, accurate to affirm that the approach by consumers to give credit to a product based on its price is appropriate. It is, therefore, accurate to affirm that product quality is directly proportional to the product price. Share your views on the comment section below or drop your tweet quoting us on Twitter. Stay tuned for more on our business section on this platform.