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How to Build a High-Quality Brand with an Affordable Product

High-Quality but Affordable. Price has always been, and will always be, a significant indicator of quality, so making a high-quality product affordable and valuable is a fine line to walk. One way to do it well is to deliver the same product at a lower cost, and be very transparent about how you did it.

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Avoid having an investment process that starts with looking for cheap stocks. Instead, have one that starts with looking for high-quality businesses that benefit from established competitive advantages and business models that produce large and growing distributable cash flows.

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Examples of High and Low Pricing Strategies | Your Business

Some use high price points to emphasize the quality of their products. Others use low prices to attract larger customer bases of cost-conscious buyers. In the middle are value-oriented providers who stress their combination of price and benefits. For the high- and low-end providers, several common pricing strategies exist.

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The high quality firm stakes its profitability in maintaining separation in quality levels compared to low cost firms, Kouvelis said, However, in an environment where firms have the resources, the know-how and the willingness to produce higher and higher quality goods with low variable costs, the truly high quality firms get backed , low price with high quality large

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With time, it's hard for a company to resist raising prices, or letting quality settle a little lower due to cost cutting measures. t Just as consumers are demanding, wanting the very best of everything, companies can be equally irrational.

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A) cutting its price to levels significantly below the prices of rivals. B) either using its low-cost edge to underprice competitors and attract price sensitive buyers in large enough numbers to increase total profits or refraining from price-cutting and using the low-cost advantage to earn a bigger profit margin on each unit sold.

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A. cutting its price to levels significantly below the prices of rivals. B. using its low-cost edge to underprice competitors and attract price-sensitive buyers in large enough numbers to increase total profits or refraining from price cutting and using the low-cost advantage to earn a higher profit margin on each unit sold.

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A) cutting its price to levels significantly below the prices of rivals. B) either using its low-cost edge to underprice competitors and attract price sensitive buyers in large enough numbers to increase total profits or refraining from price-cutting and using the low-cost advantage to earn a bigger profit margin on each unit sold.

Does a Low Price Mean Good Value or Bad Quality? | TIME, low price with high quality large

Most people simultaneously believe that low prices mean good value, and that low prices mean low quality, Steve Posavac, a professor of marketing at Vanderbilt University and one of the studys authors, explained via e-mail. Yet the studys experiments show that consumers can often be coaxed into focusing more on value or quality.

Price-Quality Relationships by Steven M. Shugan

As we see from figure 1, the price-quality relationship is nonlinear. (This result is consistent with the empirical work of McConnell, 1968.) At low prices, small changes in price correspond to large changes in quality. At higher prices, small changes in price correspond to smaller changes in quality.

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