This article by Businessnewsdaily and it’s research with the University of Chicago Booth School of Business touches on the very controversial topic of why consumers should not equate cost with quality.

Summary of significant points found in article:

1.) Since consumers think that because at low prices, the quality is consistently low they make the assumption that high priced goods are of high quality. This being the first mistake.

2.) Assume automatically that low priced goods indicate a worst quality, which may not necessarily be true.

3.) Learn this by experiencing price and quality relationship one at a time over a period of time and having access to information about products and their prices simultaneously.

My opinion: The relationship between both price and the quality that’s attached with said price is very hard to perfect, if possible. I think that people should not automatically assume that due to a lower cost, the product will not be at par with a similar product of a higher cost. This assumption often leads consumers to over pay for a certain type of product. I think the data that was received from surveying multiple groups of consumers, can be used to theadvantage of both parties: consumers and businesses.

Take Away: Consumers should buy with experience and businesses should price their products at a reasonable price, referring back to quality of production.