Price determines the growth of any business in any industry. The phrase “Cheap product has low quality or expensive products has higher quality” remains intact in customers mind set. Lately the global price hike in petrol has resulted for most organizations to increase their products and services prices.
My wife always grabs the opportunity whenever new restaurants are launched. She likes to try new food for whatever price as long it provides the required satisfaction. Recently she decided to try an Indian restaurant but was taken back with charges. She felt being vindicated because the food she consumed was charged double the amount compared to any normal restaurant. She felt the product quality was below par, poorly served and lacked the right valuation. She voiced those comments to the restaurant proprietor but she was snubbed claiming that the petrol hike means they have to increase all the prices. Most Indian restaurants in Johor have charged higher prices but failed to address on the quality measurements of their products.
Another example was based on a regular cafeteria in where I and my colleagues would hangout for their famous Hainan Tea. Immediately after petrol price hike, the next day the cafeteria has new designed menu card with ‘new’ price for their products. For the next few days we noticed a big comparison in the cafeteria, the product quantity has reduced and the quality of the product has plunged. The content of product does not have many ingredients as before which could be termed as cost cutting measures. Even the price of Hainan Tea has increased but the flavour is missing the previous golden taste. The question remains “Has the quality being compromised despite hiking the product or service price?” Does the restaurant or cafeteria proprietor feels that customers shall buy for whatever prices even if the quality is degraded?
Most organizations still maintain that products are priced accordingly and quality is not neglected. However as customers we can see the vast differences in the quality of the offered products whenever they increase the price. Majority of the organizations should emphasize that customers purchase their products with intent of deserved valuation or worth the money. Setting high price is acceptable but if the quality slackens, the word of mouth shall smear any organization in the bad books of customers.
My wife always grabs the opportunity whenever new restaurants are launched. She likes to try new food for whatever price as long it provides the required satisfaction. Recently she decided to try an Indian restaurant but was taken back with charges. She felt being vindicated because the food she consumed was charged double the amount compared to any normal restaurant. She felt the product quality was below par, poorly served and lacked the right valuation. She voiced those comments to the restaurant proprietor but she was snubbed claiming that the petrol hike means they have to increase all the prices. Most Indian restaurants in Johor have charged higher prices but failed to address on the quality measurements of their products.
Another example was based on a regular cafeteria in where I and my colleagues would hangout for their famous Hainan Tea. Immediately after petrol price hike, the next day the cafeteria has new designed menu card with ‘new’ price for their products. For the next few days we noticed a big comparison in the cafeteria, the product quantity has reduced and the quality of the product has plunged. The content of product does not have many ingredients as before which could be termed as cost cutting measures. Even the price of Hainan Tea has increased but the flavour is missing the previous golden taste. The question remains “Has the quality being compromised despite hiking the product or service price?” Does the restaurant or cafeteria proprietor feels that customers shall buy for whatever prices even if the quality is degraded?
Most organizations still maintain that products are priced accordingly and quality is not neglected. However as customers we can see the vast differences in the quality of the offered products whenever they increase the price. Majority of the organizations should emphasize that customers purchase their products with intent of deserved valuation or worth the money. Setting high price is acceptable but if the quality slackens, the word of mouth shall smear any organization in the bad books of customers.
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