The Paradox of Lower Prices: Why Customers Question Quality

Richard A Meyer
3 min readFeb 26, 2024

Price often serves as a proxy for quality. It’s a deeply ingrained psychological association: the higher the price tag, the better the product. However, this simplistic equation doesn’t always hold, and the paradox of lower prices emerges-when faced with discounted goods, customers may question the quality they’re getting. Let’s delve into this intriguing phenomenon.

The Psychology Behind Price Perception

From luxury cars to designer handbags, premium pricing has long been associated with superior quality. This association is rooted in the psychology of perception. When customers see a high price, they automatically infer that the product must be worth it, assuming that quality, craftsmanship, and performance correlate positively with cost.

Conversely, lower prices trigger skepticism. Customers wonder, “What’s the catch?” They may perceive discounted products as inferior, suspecting quality, durability, or performance compromises. This skepticism arises from a cognitive bias known as the “price-quality heuristic,” where individuals use price as a cue to judge product quality, especially in the absence of other information.

The Perception-Reality Gap

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