Brand Positioning by Price and Quality

The price-quality product characteristic is so useful and pervasive that it is appropriate to consider it separately. In many product categories, there exist brands that deliberately attempt to offer more in terms of service, features, or performance. Manufacturers of such brands charge more, partly to cover higher costs and partly to help communicate the fact that they are of higher quality. Conversely, in the same product class there are usually other brands that appeal on the basis of price, although they might also try to be perceived as having comparable or at least adequate quality. In many product categories, the price-quality issue is so important that it needs to be considered in any positioning decision.

It is usually very difficult to compete successfully using both quality and price. There is always the risk that the quality message will blunt the basic “low-price” position or that people will infer that if the prices are low, the quality must be low, too.

It is usually very difficult to compete successfully using both quality and price. There is always the risk that the quality message will blunt the basic “low-price” position or that people will infer that if the prices are low, the quality must be low, too.