Price as a measure of quality?

First perspective: – Reality
If it is more expensive is it better?
Not always, it’s easy to find products that are similar and have different prices, like commodities as bleach. Bleach is basically the same; however you find different brands with different prices.

But, it’s common knowledge that usually better products and better services tend to cost more in production and providing (better materials or better human resources tend to cost more).

Second perspective: – Perception
Customers make associations and define the brand positioning according to different factors, and one of those is the Price.

Usually, customers have limited knowledge about the service and product they intend to buy, even if the information is available, most customers don’t expend must time researching for more information about products like soap, toothpaste or others.

So, most customers tend to make a mental shortcut to optimize their time, and associate Price with quality, assuming that if it is more expensive, it’s better.