Monday, December 12, 2016
Building a Reputation of Quality
When given an option people are willing to spend a little more on a product that has higher quality than one that doesn't. Of course that is dependent on the purpose and use of the product. While someone wouldn't spend much on a screwdriver they are going to use once they will spend more on one they plan on using for a long-time.
"Big ticket" items like cars, appliances, and houses should be of high quality because they can last many years. These "big ticket" items have price flexibility and can work quality in their value proposition. However, when items continually adapt every other year then product life-cycle might be a better approach ensuring the product lasts as long as its intended relevance.
Quality builds a reputation. People who perceive a product as having high quality will find more value in it and this turns into increased sales. More specifically it turns into a value proposition that leads to word of mouth marketing and repeat sales. When the product builds wide market reputation based on quality it increases its overall sales potential.