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How Price and Quality Matter

Money JarDue to ever-increasing competition, customers have a huge choice when it comes to deciding the service they should go to. The competition in the market is fierce and customers are king . Here we look at some of the factors that guide customers towards your business and how you can leverage them to get the best for your brand.Go through this article to read about the two biggest factors influencing customer purchase decisions: price and quality.

Price

Price is one of the biggest factors influencing customer interest in a specific product or service. The price of a product can either lure customers towards you, or it can push them away before the purchase is finalised.

Setting the right price for a product/service is often a complex issue. Not only do you have to set the right price but you must be sure you have enough profit for you, but you also have to make sure that your price is in line with the competitors within the market. You cannot charge exuberant rates, only to see the demand shrinking.

So, finding the right price is often a complex task. However, if you are successful in finding the right price for your service, you should get more interest and of course sales.

Most brands often go for very competitive pricing when they are in the launch phase. This is a good strategy to attract customers to your new products or services and create the right impression in their minds. Setting your price below your competition to attract customers works when you are starting out but is really not good practice for sustainable growth. I know when I owned a very popular franchise Pizza delivery store. All the competitors undercut my offers, but I knew they couldn’t sustain this. Eventually they had to raise their prices just to survive . The same old Competing on price never really works. Something must give and usually cutting corners in service and product is what happens and as we all know you can damage your business long term with this practice.

Quality and Trust

Besides price, quality is the second biggest factor influencing customers towards a service. Customers want quality in the service they are buying, and they are on the lookout for brands that give them this desired quality.

Word can easily spread around the market, and if you are providing high-quality services, customers will eventually trust your business and have the confidence to buy from you knowing they are going to get the best service possible. Take John Lewis who sell on trust not price. In contrast, reviews highlighting poor quality of your service can also go around town, leading to a poor brand rapport.

Customer Service

The millennial customer is very picky when it comes to customer service. They want to be treated fairly and respected for their relationship with the brand. Brands need to make sure that all customer issues are addressed, and that the customer is satisfied.

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