Response to Sarah Allen

Can high quality, expensive products and services be "good value"?

I agree with Sarah that customer value and customer satisfaction are interdependent. Her views are similar to mine in which we see that if a customer purchases a product or service and is satisfied with the quality, their customer value will be high.

However, it is the second half of her post that I do not entirely agree with. She states that “if a high quality product is only available at a high price, people will not perceive that as good value, nor will a low quality product selling for a low price.” I disagree with this to some extent. When looking at this from a technology perspective I can see how a customer would view a high quality, high priced laptop as a good value. In order to understand why exactly a product or service is as expensive as it is, you need to have knowledge of that product or service. As well as being an business management major, I am also majoring in computer science. I am able to understand what specifications would make a certain laptop be considered “high quality” and then because of that, I can also understand why that laptop is more expensive than others.

Looking at the quote from Sarah’s post, “…nor will a low quality product selling for a low price” makes me think of something that I know is a low quality product or service that is also at a low price. The first thing that comes to mind is the Dollar Tree. The Dollar Tree is a store that sells a variety of things all for $1 or less. Being a poor college student, I have shopped at the Dollar Tree for things like gift bags, wrapping paper, birthday cards, balloons, etc. I know that nothing is the Dollar Tree has spectacular quality and I never expect much when I purchase something, but in my head I think “well, it’s only a dollar!” Occasionally a gift bag will rip or the handles will tear through the paper. These are understandable mishaps. I do not see anything from the Dollar Tree as low value because I don’t have high expectations for the quality and the prices are extremely low.

What are other examples of expensive or inexpensive products/services that are perceived as "good value"?

Sarah's post can be found here.