Nowadays, there has been an increase in the number of people who pay attention to the issue of design and marketing of products. Arguments exist regarding whether newly lauched products have to prioritize their quality or if more thoughtful, a competitive price should be pursued. Both opinions are valid, and they will be elaborated in this essay.
One major reason why companies might cut down prices is for a higher revenue growth. Specifically, a relatively low price often makes the product more competitive in the market, causing significant increase in total revenue. For example, households tend to compare prices and to choose the cheaper substitudes to avoid excessive spending, so the goods with lower price will achive higher sales, which therefore leads to expansion of market share.
In terms of the benefit of well- qualified goods, a better brand image could be achieved due to their high durability. Consumers may become more likely to repurchase the products after finding that they outstands out from other goods in the same market. The users may, for instance, recommend the products to people around them. Hence, the products will build a reputation for high quality, strengthening brand loyalty.
In conclusion, although the quality of products is essential for having a larger customer base, consumers are always more sensitive to the price fluctuations. Thus, a cheaper price level is often more important, as it has a greater impact on sales and overal revenue.