Consumer Attitude Towards Cost Cutting And Studies Case Study Based On Market Share Analysis And Customer Ratings Essay

967 WordsDec 3, 20164 Pages
Abstract: Majority people are of the opinion that companies which offer products or services at a cheaper rate than their competitors, compromise on quality of the product or service and in turn fail to fulfill customer needs in comparison to their competitors who claim to offer more services for the higher prices they charge. This paper proposes to analyze the aforementioned hypothesis and check whether it holds true under all circumstances. In order to accomplish this, the paper explores consumer attitude towards cost cutting and studies case studies based on market share analysis and customer ratings. Introduction It is common practice to implement a low pricing strategy in order to gain a competitive advantage. Companies like Samsung and Xiaomi, both smartphone manufacturers, offer similar features in their smartphones but the prices of their products vary significantly. Most consumers might opt for the Samsung smartphone over Xiaomi due to the brand value. Higher brand value usually equates to higher cost of the product. Being a frequent Samsung user, I myself would prefer buying their phone with the assumption that even though it costs more, it offers better specifications. Like me there could be many more with the same mindset and they might believe that if Xiaomi claims to offer the same specifications at a cheaper rate, then there has to be some catch and the company is definitely compromising on something in order to fulfill customer requirements and still save

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