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| February
12, 2008
What's A Fair Price?
Interview
with Sarah Maxwell, author of The
Price is Wrong |
Mike
Carruthers:
Everything you buy has a price. But do you pay a fair price? What is a fair price?
Sarah Maxwell:
A fair price is one we think is acceptable
and it's also one that we think is socially just - and if it's not, we get annoyed.
Sarah Maxwell, author
of the book The
Price is Wrong… Victoria's
Secret, several years ago, sent out catalogs and they had lower prices for men
than they had for women - this makes people very angry. Charging
the lowest price for an item is not always the best strategy. It
can work against you because sometimes if people don't know an awful lot about
the product, they will judge the quality of the product by the price. They did
a study giving college students five different beers and the only difference was
the difference in price. And then when they asked them the quality, the students
all said the most expensive beer was the best quality. But they were actually
all the same beer. Sarah
says businesses put too much emphasis on charging low prices when often something
else is more important to consumers. This
is where I think trust comes in. That if people have been treated fairly in the
past then they do develop trust. And they've even found on the Internet that people,
when they look up what's the cheapest price, won't necessarily buy what's cheapest,
they'll go to the person that they trust.
At
somethingyoushouldknow.net I'm
Mike Carruthers and that's Something You Should Know.
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