In a past article, we discussed strategies that supermarkets often use to influence consumer purchases, such as aisle layout and product placement. For example, we often tend to focus on things at eye level, therefore, a supermarket may place higher-priced products there. Considering price further, this National Geographic video investigates the influence a product’s price (often relative to other products) has on our:
Broadly speaking, when the quality of a product is unknown, the formation of our pre-purchase expectations of its quality can be influenced by known external cues—its price (and brand reputation). Interestingly, its price can also influence our post-purchase experience/perception of its quality.
However, as highlighted in the video, when it comes to consumer purchases, a product’s price may not always be a fair determinant of its quality, especially relative to other products. Coming back to the supermarket example, when managing a budget, the product’s placed above and below eye level may still be good quality alternatives.