Question

1. price and quality, which one has a major implication of increasing the market share of a company.
2. explain the choice of price over quality.(4 points)
3.explain the choice of quality over price. (4points)

Answer 1

1. price and quality, which one has a major implication of increasing the market share of a company.
2. explain the choice of price over quality.(4 points)
3.explain the choice of quality over price. (4points)

1. In order to increase market share the best strategy would be to play with he price. Quality is a feature that the user will get to know only if they buy or use the product. However, price is a feature that will attract the customer. Quality comes next. Anything that is related to quality will be related to time and cost as quality takes time and money to be built into the product. Therefore, in a scenario where the company doesn’t have much time or costs to spare in order to increase the market share, it should go for Price Strategy.

2. Price over quality: As a consumer we are almost every time attracted to the product because of its price. However, is the choice of price over quality a good choice? The answer depends on 2 things – a ) Why is the cost low? – the company may have a very good cost management system and hence is able to pass the benefits to the consumer in the form of low prices, in such a case the quality of the product will be good. However, there is other force at play – Low price could actually mean poor quality and hence will cost you, as a consumer, less lifetime of a product or future expenses, and as an organization it will cost you customer satisfaction, and brand image dilution.

3. Quality over price: it is said that quality over price is always a sustainable choice, because it saves future costs for the consumer, and costs of replacement and waste cost for the manufacturing company. If as a consumer I am preferring quality over price, my choice is bound to get me a good product that will last long and will require less maintenance. As a manufacturer, if I invest in quality I will save costs by doing process optimization, and reducing waste. And by doing so will be able to mitigate many a problems or costs associated with environment impact, customer satisfaction, and economic losses. Quality is a long term strategy, whereas price is a short term strategy. Price may help me enter a market but quality will always help me sustain in that market.