Higher Prices As Quality Signals - Deepstash

Higher Prices As Quality Signals

Higher prices give the impression that an item is worth more, even if it’s made by the same manufacturer or the same materials.

This is a popular strategy that businesses use to signal that their items are luxury or designer pieces. Customers see an expensive price tag and assume the items are of the highest quality possible. Even if that is true, it doesn’t mean that the cost reflects what the items are actually worth. 

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karlabro

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