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Does a Low Price Mean Good Value or Bad Quality? | TIME
Nov 14, 2012· “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 study’s authors, explained via e-mail.
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High Quality, Low Price
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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. ... the unfamiliarity argument could only be used for a new product or a durable good whose sales depend mainly on first purchases. ... price-quality relationships exist. It is only ...Published in: ACR North American Advances · 1984Authors: Steven M Shugan
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