Question

Do you base any purchasing decisions on the qualities of the company producing the product (as compared to just the qualities of the product itself)? If yes, what do you look for in a company when deciding whether to buy that company’s product?

Answer 1

The quality or brand image of a company matters when selecting a product. This is more significant when:

1) The product which is to be bought is of high cost. In this case, suppose two products are offering same specifications and are priced similarly. However, a customer is likely to go for the company which has higher brand value or reputation.

2) When a branded company launches a new product in the market. In this case customers are likely to try out the new product since, the company has already established itself in the market and there is a trust among customers that the new product offered will be of good quality.

Things to look for in a company when deciding whether to buy that company’s product :

• Quality of other products in the company's portfolio
• Service quality and honor of warranty and returns claims in case of defective products
• Value offered by the company's product vis-a-vis other company products. Value here is defined as Total benefits offered / Total cost of acquiring the product