While some would pounce on rock-bottom prices without hesitation, others are tentative concerning bargains and eye-popping 50 percent off deals. After all, doesn’t a cheap price equate to cheap quality? I mean, why is this product so cheap that no one else wants to buy it? It is really dependent on so many factors. Price and value are two different things. There is a whole lot of psychology that involves pricing products and you also need to understand some bit of economics to tell the difference. Some people insist that if something has a price of zero, it means that people don’t think it has any value. Price isn’t determined by value, it is determined by the intersection of supply and demand. If something is cheap it doesn’t necessarily mean it has low value. In the past few months and years, this discussion keeps coming up again and again — and it’s good to see folks pushing back and pointing out the difference between price and value. Perception has certainly had the better of most consumers. Brand names have a firm grip in this notion that high price means good value however knowledge of some bit of economics would prove the opposite. More demand and less supply means a high price, less demand and more supply means the cheaper the price.
Compare the pricing for this Samsung Virtual Reality Headset found on Amazon.
Now coming back to the issue of quality, there is an article from business insider that perfectly explains why you should drink cheap liquor. It is one of those compelling arguments to the theory of price vs quality. Participants have their eyes covered and are then made to taste different bottles of wine. They obviously have no clue how much most of these bottles of wine cost. The results are going to surprise you. We will go over them on our next post. This is the whole concept of our web space .