Spend More for Quality or Buy Cheap to Save Money: The Preference of SHS Students in
Respond to COVID-19 Pandemic
Independent: Pros and Cons of spending for quality and buying cheap to save money
Product Quality
Product quality is the characteristic of a product or service that bear on its ability to satisfy
customer needs. Aaker (1994), quoted Ehsani (2015), that "the quality of product is the
customer's perception of the overall quality or superiority of the product or service, with respect
to its intended purpose, relative to alternatives". It is usually seen from the customer’s
perspective. If the perceived product quality is in line with the expectation, then the customer
will perceive the product quality as a good quality and also feel satisfied. Conversely, if the
perceived product quality is not as expected, then the quality of the product as the customer
perceived is qualified as a bad product quality. Thus, the qualification of both bad and good
product depends on the ability of the company to meet the customer expectations.
In relation to the study the researches aim to conduct, this add up to the knowledge and answers
the question, “How much money and how frequent do the participants spend when: (a) Spending
for Quality?” Given the factors and satisfaction the quality of the product gives to customers, is it
enough reason to consider that spending more quality is preferred by students over buying cheap,
just to save money.
Razak I., Nirwanto N., Triatmanto B. (2016). The impact of product quality and price on
customer satisfaction with the mediator of customer value. Journal of Marketing and
Consumer Research. Retrieved from [Link]
Cheap
"Cheap" is usually considered an offensive term, but could frugality be the best thing for your
finances (Simth, 2014)? Frugality is the quality of being economical with money or food, easily
say, thriftiness. Being cheap can save money because of course, people would rather not buy
things. This applies to anything people are going to spend money on. For instance, by borrowing
books, music and movies from the library, people don't have to buy them. In addition, being
cheap can make people more creative. It enables people to seek for alternatives that would make
fit their budget and product or output expectation.
These days, people have a greater chance to purchase various products at cheaper prices.
However, there are downsides of purchasing various products at cheaper prices. The first reason
would be that these cheap products can be made from unsafe chemicals and low-quality
ingredients. Since manufacturers aim to reduce the production cost in order to provide lower sale
price, they need to cut down on the producing costs. Using those goods, in return, can negatively
affect the consumer's health. Also cheap prices usually associated with low quality and short-
term durability. As a result and relation to the study the researcher aim to address, cheap
products do not enable people to save money. Instead, they have to spend more budget on
repairing, or before long, they are forced to buy a new one.
Smith A. (2014, Sept. 13). 7 benefits of being cheap. Retrieved from abcNews.
[Link] cheap/story?id=25430578
Spending on Quality Can Save Your Company Money
In business perspective, saving money is very crucial for success. A lot of manufacturers
nowadays prefer to purchase cheap materials or offshore their labor where labor costs are low.
Custom Wire Baskets, American Manufacturing (2015), identified that it is better to spend a little
extra for higher quality now and save money in the long run. Spending on quality can actually
save your company’s money later on for it’ll lower the replacement costs. It is important to look
at the total cost of ownership over time, not just the initial cost. This is the advantage of spending
high money for a good quality; it ensures the durability of the product and reduces the possibility
of spending over again. Second reason is that, it saves the production time. Having to
continuously rework or remake parts that are damaged by a low-quality product can really add
up over time and waste too much money.
In relation to the study aim to conduct by the researchers, these add up to the knowledge of why
most of people prefer spending high money for a good quality. Spending money on high quality
product lowers replacement cost and let them avoid on spending too much replacing a specific
product. Also, it’ll enable them to save money and production time, which is both an important
factor for students who don’t have work yet.
Custom Wire Baskets, American Manufacturing (2015, May 19). Why spending on quality can
save your company money. Marlin Steel. Retrieved from
[Link] spending-on-quality-can-save-your-
company-money
Buying Cheap Is Expensive
Buying cheap can be expensive. It is more often than not means low quality. Less initial spend
can lead to greater spending down the line — whether it's for maintenance and upkeep, or
replacement costs when you have to buy the same cheap product or service over and over again.
If you really want to save money, increase productivity and safety(Fawkes, 2018). There are
situations when it makes sense to spend more money for quality, so you don't run into the
ongoing costs.
In the Business News Daily Editor (2020), it was revealed that although researchers found that
consumers see low prices as good deals, they suggest that low prices can backfire for retailers
because consumers sometimes see low prices as a sign of a low-quality product. "The bottom
line of our research is that people can hold two opposing beliefs about a product," said Steve
Posavac, the E. Bronson Ingram professor in marketing at Vanderbilt University's Owen
Graduate School of Management and a co-author of the study. "In the case of price, most people
simultaneously believe that low prices mean good value and that low prices mean low quality.”
Business News Daily Editor (2020, March 12). Why Low Prices Can Scare Off Customers.
Business News Daily. Retrieved from [Link]
[Link]
Spending Now to Save Later
It's about locating the right product or service that will provide the greatest long-term benefit
(Fawkes, 2018). This often represents a higher up-front cost but will provide a greater saving
through the lack of maintenance and replacement that is required. Higher performing and higher
quality parts, products and services provide greater safety, productivity and economic outcomes.
Certified and compliant products are designed and tested for performance; this bares a greater
cost but will save money and injury in the long run.
This knowledge contributes in giving factors as to what influence the students to spend more for
quality. Do they consider higher performing products before purchasing, even if it requires them
to spend more money? Moreover the researchers would like to seek as well to these factors and
how did the COVID-19 pandemic affected each.
Fawkes A. (2018, June 1). Why cheap is almost always more expensive. LinkedIn. Retrieved
from [Link]
andrew-fawkes
Save on Cheap Items and Little to Save on Expensive Items: Experimental Results and
Implications for Business Strategy
The theory of rational choice assumes that people have well-defined preferences and they
maximize utility by making the best choices given these preferences and their resources (Azar
2009).
Dependent: Buying Preference
Consumer Preference
Consumer preference is described as an individual's subjective tastes as assessed by their
pleasure with things after purchase. Understanding customer choice will provide an indicator of
consumer demand because it dictates what things consumers will purchase within their budget.
This information will assist in determining the price for a product and ensuring that enough
product to meet demand (Weedmark, 2018). Consumers would be able to recognize and consider
product satisfaction in relation to their budget if they were better at managing their money. The
goal of the study is to learn about people's purchasing preferences and the categories or
qualifications that they consider.
As to Weedmark (2018), costumer’s preferences are influenced by many factors. In accordance
to the study, the researchers would like to know what purchasing preference students of UNO-R
are utilizing given the current pandemic we are experiencing. The researchers would like to seek
if there is there any significant relationship between the participants’ allowance during the
pandemic and their preferred buying choice and how did it influence the preference of between
spending more for quality or buying cheap to save money.
RefWeedmark, D. (2018, June 11). Definition of Customer Preference. Market Research.
Retrieved from [Link]
[Link]
Consumers' Preference and Their Buying Choice
The economy was growing in tandem with technological advancements that might be adopted
and influenced by consumers' purchasing preferences. There are a few tactics that can aid in
consumer preference and choice, as well as product purchase.
Today's consumers are too astute to purchase their requirements in a variety of ways. However,
before purchasing their requirements, people research product performance and price on various
web sites and social media platforms. While surfing this information, customers will be able to
assess its true value and cost advantages, as internet businesses do not have to pay for a
showroom or personnel. Consumers do not need to go from store to store to examine the
product's performance and price (Ramachandran et al., 2020).
Ramachandran S., & Basariya R. (2020).Consumers' Preference and Their Buying Choice.
Retrieved from
[Link]
Their_Buying_Choice
Consumer Behaviour and COVID-19
Due to the pandemic, various alterations were considered by the buyer before purchasing. When
it comes to buying or purchasing items, consumers are more pragmatic. External causes like as
the COVID-19 epidemic, the effects of political and legislative actions and the economic
condition are all influencing the current scenario in global markets. It is possible to assume that
customers will modify their shopping habits in the long run as a result of this (Svajdova, 2021).
Consumers' lifestyles and buying patterns are disrupted by pandemics like COVID-19, and the
global economy suffers as a result. Consumer purchases of a country's own brand and products
made in that country contribute significantly to the country's GDP and aid in the recovery of the
economy (Verma et al., 2021).The goal of this study was to determine the influence of Covid-19
on the economy as well as changes in consumer purchasing behavior and patterns. Identifying
the factors that influence a customer's purchasing behavior and about the consumers’
willingness.
Svajdova L. (2021, June 2). Consumer behaviour and COVID-19. Journal of Internatioal
Business research and Marketing. Retrieved from
[Link]
Verma M. & Naveen B. R., 2021. COVID-19 impact on buying behaviour. Vikalpa: The
Journal for Decision Makers. Retrieved from
[Link]
Understanding the COVID-19 Effect on Online Shopping Behavior.
Because of its constant and rapid spread, the Covid-19 pandemic poses a threat to everyone.
People have limited options and choose to stay at home to prevent social interaction and the
spread of disease. People's purchasing preferences have changed as a result, and they are more
likely to utilize an online shopping app rather than going outdoors to buy things (Meyer S.)
Covid-19 has an impact on consumer preferences and gives us an advantage over internet sellers.
Online purchasing has drawbacks, but it also has benefits, particularly in these time of epidemic.
The World Health Organization also addressed the issue, stating that receiving parcels from
regions where COVID-19 cases have been reported is safe. “The danger of an infected person
contaminating commercial items is low, as is the possibility of contracting the virus that causes
COVID-19 from a shipment that has been transported, travelled, and exposed to various
conditions and temperatures,” according to their website.
Susan Meyer. Understanding the COVID-19 Effect on Online Shopping Behavior. Retrieved
from [Link]
All changed: how COVID-19 is transforming consumer behaviour
Changes in behavior and habits are also linked to the amount of time spent in new situations.
According to studies, it can take anything from 18 to 254 days to acquire a new habit; on
average, it takes 66 days. 2 People are more likely to embrace habits that do not dramatically
alter their current routine. In reaction to the various waves of this epidemic, consumers are
settling into new patterns of behavior for extended periods of time. This is an ideal environment
for the creation of new habits (Avramakis et. al., 2020).People are starting to adjust and change
their new habits and behaviors, including their purchasing preferences, as a result of the current
crisis, which is the covid-19 pandemic. This research demonstrates that the covid-19 is a
significant component that influences customer purchasing preferences.
Avramakis E.,& et. al. (2020). All change: how COVID-19 is transforming consumer behaviour.
Retrieved from [Link]
dialogues/health-and-longevity/[Link]
Looking is buying. How visual attention and choice are affected by consumer preferences
and properties of the supermarket shelf
In the supermarket isle, there is a war raging between what the customer wants and what the
store and others want her to see and, as a result, buy. A variety of features and attributes are
included on product packages and displays in order to attract buyers' attention. A consumer, on
the other hand, takes with her a set of goals and interests that are tied to the items and their
features. Brand preferences, pricing sensitivity, and dietary habits are all crucial internal
considerations. Consumers' product choices were influenced by both external and internal
influences, with a substantial positive relationship between visual saliency and consumer
preferences. Consumers appear to be taking advantage of the situation (Gidlöf et. al.,
2017).There are several circumstances and opportunities that must be considered. There are
several factors and objectives that impact consumer preferences depending on their criteria and
qualifications for the goods, which might be considered an advantage.
Gidlöf K. & et. al. (2017). Looking is buying. How visual attention and choice are affected by
consumer preferences and properties of the supermarket shelf. Retrieved from
[Link]
uying+pre#d=gs_qabs&u=%23p%3DSmx_3SRTZMAJ
Factors Affecting Consumer Preference of International Brands over Local Brands.
However, "consumer tastes and preferences in different countries are beginning to converge on
some global standard" for some products and services (Holt 2002). Consumer attitudes to the
prevalence of global brands, on the other hand, appear to vary depending on the customer. On
the one hand, customers appear to value and adore multinational brands, viewing them as status
symbols. Global companies, on the other hand, are frequently chastised for endangering local
peculiarities and imposing Western cultures on our society, resulting in a loss of cultural identity.
(Ismail, 2012).The industry placed a high value on the preferences of its customers. People have
their own methods and qualifications that are based on their preferences, but the majority of
consumers prefer international brands to local brands.
Ismail Z., & et. al.(2012).Factors Affecting Consumer Preference of International Brands over
Local Brands. Retrieved from [Link]
Impact of “High Quality, Low Price” Appeal on Consumer Evaluations
Marketers employ various kinds of strategies to make products appear more attractive for
consumers. Costumers on the other hand consider a lot of things before deciding whether to buy
the product or look for another option (Shirai, 2015). One of the appeals frequently utilized in
retail advertisement is a wording appeal, “high quality, low price” (HQLP appeal). Meaning,
stores and other businesses tries to give their costumers a higher quality of product at a lower
price. This study, Impact of “High Quality, Low Price” Appeal on Consumer Evaluations,
investigates consumers' responses to the contextual HQLP appeal. The appeal is intriguing
because it contains two cues: high quality and low price. As consumers usually prefer to obtain
high quality products at lower costs, this appeal seems to contradict each other because a theory
essentially implies that high quality equals to high price.
The results of study shows that the effects of the HQLP appeal vary depending on the level of
product prices. Costumers seem to value more on the “high quality” cue in the case of low price
while they seem to value more on the “low price” cue in the case of high price. In relation to the
study, this research contributes answer to the question, ‘Which buying choice do the participants
prefer?’ In the case of low price, the costumers consider the quality, and demand for a H-Q
product. However, in the case of high-price, costumers, on the other hand, consider availing
lower-priced.
Shirai, M. (2015). Impact of “high quality, low price” appeal on consumer evaluations. Journal
of Promotion Management.
[Link]
Product Quality Influences Customer Satisfaction Most When the Price Was Discounted:
A Case Study in Kuching Sarawak
The study is about customer satisfaction towards the product quality. The main purpose of the
researchers is to classify whether the eight dimension of product quality after price discounting
satisfy customer. The respondent of the research was chosen through sampling method by using
the non-probability sampling. The results infer that that the customer’s satisfaction towards the
discounted product quality is based on the three attributes most namely perceived quality,
performance and reliability. There is significant in the components or attributes of product
quality for a discounted product to customer satisfaction. There is also interaction of difference
with customer satisfactory and gender with customer satisfactory of discounted product qualities.
Which females are more relatively critical in analyzing product quality and they are ones who
are highly satisfied with the discounted product quality.
From the practical point of view and to relate I researcher’s aim to conduct, this findings make
several important contributions. Firstly, in measuring the satisfaction level of the discounted
product quality shows that, product of all kinds on sales or discount are not in consumers mind
set of relating low price are relatively low quality product. The possibility is there, but from this
study, product on discount has kept a level of standard that could satisfy the consumer on their
purchase of the product. Hence, discounted products are not low in quality, but the probability of
the same level of quality product before any alteration of price. Secondly, the finding shows that
the product does have disadvantage. Thus, it held that not all products which are discounted are
at the tipped-top condition but although it happens, the product does still satisfy consumers.
Given this finding, I conclude that people chose to pay a discounted price (lower than the
original), than ensuring the quality of the product as it gives them satisfaction. This only tells that
in this research conducted by Jakpar et al. (2012), price matters most than products quality.
Jakpar S., Goh Sze Na A., Johari A., Myint K. T. (2012). Examining the product quality
attributes that influences customer satisfaction most when the price was discounted: a
case study in Kuching Sarawak. ResearchGate.
[Link]
