Great quality, best prices; what does consumers want?

Good shirt or cheap price, what do you really what?” I overheard the saleslady at a boutique asked with a rather curious disposition, a seemingly unyielding customer, as they haggled over a particular shirt. “Both” answered the customer, a stout gentleman, compellingly like he perhaps does in other shops to get good bargains. In her reply apparently in frustration, the saleslady said, “not here, if you want that kind of shirts you are asking for at that price, please go to ‘Yaba’   (Yaba is a suburb of Lagos in Nigeria, notorious amongst other things, for the sale of second-hand clothing, mostly smuggled into the country). I guess they have been on that bargain long enough to instigate the weird response from the lady. There’s no justification for that response though; the lady failed in customer service there-that is another day’s discussion.

However, the encounter above brings to fore the common knowledge that an average customer wants to get the best value of any goods and/or services at all times, at the lowest price that he or she is willing to pay for.

That was exactly the case of the gentle man above.  But unfortunately for him, he met a saleslady who perhaps has equally been engulfed with the age-long perception that the “the more the price, the greater the quality value”.  Or how would you explain her derision that the gentleman should go to our famous “Yaba?” From her disposition, she may never believe that the gentleman can get that same quality of shirt at his preferred price.

Nevertheless, the issue of quality and price in relation to what the customer is willing to pay has always put businesses in quandary to the point that some have got to reduce the quality of their products/services to get customers’ patronage. Someone shared with me an experience recently of how she walked into a company’s premises “unchallenged”, and there were security men at the gate. According to her, “I was taken aback considering that I carried a big bag filled with my wares to sell’. She continued, “Because I needed the right direction to the particular office I was going to, I went back to the security men at the gate for direction. It was then one of the officers pointed the direction to me in a floppy manner”. Disturbed by her experience, when she eventually got to her destination, she inquired the reason for the negligent security; she was told by the company’s HR head that “security service company gave them what they (the company she visited) could afford”.  What? Another eye opener, if you like. “Security sub-standardization” to meet customer’s needs? I am still musing!

Anyway, this perception that “the more the price, the greater the quality value” is perhaps why customers would jump at, without much consideration, an admired product or offer promo at rock-bottom price.  Still, you find some people that are reticent and withdrawn at such offers that would consider it “too low a price to produce anything of good value”.  In this category is a pool of customers that would never look the way of any product or service that they consider “cheap”. Nevertheless, smart businesses have designed means to attend to the needs of this group of people, by creating a niche market for them. Call them luxury customers if you like; they are those that can pay premium on any product or service.

However, more and more people are getting to change the perception that expensive products translate to quality. Of my many respondents to my question on “what consumers really want? Bimpe’s response was interesting; the banker insists that premium does not really mean quality. According to her “I have gotten products that are of better quality than the so called premium products, at cheaper prices.” She added “Premium is a phrase used by brand owners to justify a higher markup”.

But Charles Eloka, a tourism practitioner, disagreed completely; “there is no way you can compare low-price products with high-price products. The difference is clear. A whole lot went into the production of the later unlike the former” he said

Indeed, looking at the huge investment brands make in research and development, and other overheads associated with marketing costs, one would be tempted to agree with Mr. Eloka. But does that really translate to quality value?

It is an understandable fact that heavy investment in product research and development does not translate to quality products. Though it sure affects product price.

However, it would be safe to say that just as consumer’s perception of quality is relative, so also is its perception of product price. What is considered a great quality to one may not be to the other. So also what is considered the best price for consumer A, may not be to consumer B.

One thing is nevertheless clear; there’s no need denying the fact that consumers crave for value more than ever, even beyond price. This value is simply satisfaction.

Therefore, businesses should be deliberate in looking into customers’ satisfaction, by giving them quality products and services at best prices. This is more so as customer is the key to your business.

Arinze Okamelu