THE QUALITY OF A PRODUCT OR SERVICE IS VERY OFTEN DETERMINED BY THE PRICE We have all heard the saying – ‘you only get what you pay for”. To a very large extent this is true. That said, high priced products can be crap and low quality products can be seen as quality, simply because […]

THE QUALITY OF A PRODUCT OR SERVICE IS VERY OFTEN DETERMINED BY THE PRICE We have all heard the saying – ‘you only get what you pay for”. To a very large extent this is true. That said, high priced products can be crap and low quality products can be seen as quality, simply because of a higher price. Consider this experiment. A large group of wine buffs with experienced pallets were 5 glasses of wine to taste. Each glass came with only one item of information – the price. The offering was as follows: Wine A – valued at $5.00 – tagged as $5.00 Wine A – valued at $5.00 – tagged as $45.00 Wine B – valued at $45.00 – tagged at $5.00 Wine B – valued at $45.00 – Tagged as $45.00 Wine C – alternating In other words, while respondents were told there were 5 different…