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Uwe Ellinghaus's avatar

"Prices signal value, but they do not guarantee it." You put this nicely. For most buyers, price is an indicator of quality. Whilst it is not necessarily true, it makes purchase decisions easier and avoids cognitive dissonance. If it has been expensive, it must be good. And you are right, a "returning customer" is not an indicator for the quality he bought. It is only an indicator that he was satisfied. Satisfaction is by definition the balance between the expectations somebody had versus the results he got. Not just related to purchase decisions. This easily explains why in customer satisfaction rankings, premium brands seldom succeed. Discounters are often winning. Not by offering quality, but by beating the low expectations their buyers had, given the affordable price, by offering products with an acceptable quality.

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Holm Braeuer's avatar

I really liked what you said at the beginning, that your interest shifted from the "quality" of products to the "quality" of processes. How you do things, and how you "organize" you life seems to be much more influencial for living a satisfactory life than the things you "consume" in one way or other ...

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