When considering product sales, the relationship between product quality and price is often a leading factor in the direction of a sale. In the beginning, you may get support and receive business from your friends and family who simply want to help you as an entrepreneur. For those who don’t know you, how do you vet them as future consumers? Analyzing the relationship between your product quality, price point, and marketing content is essential in finding ways to improve sales within your viable market.
Many marketers have researched the effective relationship with a product’s quality and it’s price. Journal of Marketing collected research on this in a dated 1988 article with still relevant information. It is mentioned there that “... perceived quality requires that the company view quality the way that the consumer does” (Zaithmal, p16.) That makes sense, right? Outsiders aren’t privy to the cost of everything it took to create your product or service but they do develop expectations based off of product comparison, and a major factor in that is price. Consumers aren't plagued with how you came to a product cost, but more so why that is the cost? Using content to offer more information will convince them of the price and product value.
A.) Fresh Croissant- $1.00
B.) Warm, Buttery, and Flaky Croissant- $1.75
C.) Croissant- $.75
My guess is you chose option B. Why? The descriptive content offered an image and triggered sensory memory of touch and taste. They could be the same croissant, but the content used probably convinced you the $1.75 was the better quality product. Not just because of the description, but also the higher price made you believe it was somehow better. It is important to match your product pricing with valuable content (and a worthy product.)
The higher the cost, the greater the perceived value.
The better the content, the greater the perceived value.
The better the perceived value, the greater chance of a sale.
So, take into account the importance of your content when you are listing pricing and descriptions of your product or services. Are you using captivating copy or does it need a little sprucing up? Be honest with yourself. If you need the help, invest in hiring someone to create content based off your vision for your product's message. This is your story, your way so give it your best!
Along with honesty about your content, what is the true caliber of your product? Is it worth what you're selling it for? The relationship between content, quality, and price is delicate. That relationship ultimately affects the trust a consumer has with your product. If the content catches a consumers eye, and the price convinces them to buy, you better be certain you are offering a quality product. You can, in fact, have the content and price on point but if your product doesn't level up, you may lose trust in your marketing and product. Do not mislead your viable market! Don't lost that good reputation of being a fair, honest business person pushing your product; not just seeking profit.
In all work, these factors each play an important role. The science behind their relationship is tricky but still studied to this day by marketers. Use this information to better guide your journey on marketing your business and becoming a profitable entrepreneur. We can't wait to see how you flourish!
Zeithaml, Valarie A. “Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence.” Journal of Marketing, vol. 52, no. 3, 1988, pp. 2–22. www.jstor.org/stable/1251446.