“Does a Low Price Mean Good Value or Bad Quality?” This is a question that consumers often ask themselves.  Steve Posavac also points out that “most people simultaneously believe that low prices mean good value, and that low prices mean low quality.”

However, in terms of a specific good,  one of the conclusions above tends to dominate the person’s mind, based on certain external motivators. For example, during Black Friday’s sales season, most people believe that low price means higher value rather than poor quality even if it doesn’t . In order to distinguish between good value and low quality, Customers should try to minimize the effects caused by outside factors such as ads and make a rational decision, meaning that they can get the highest value of good at the lowest price. Assuming that the price of a product remains the same all the time, it might be better for one to buy the good in the future if he/she is not in urgent need because the future time value of a specific amount of money is higher than that of the present.

Reference:

http://business.time.com/2012/11/14/does-a-low-price-mean-good-value-or-bad-quality/#ixzz2CetcTMur