UNIT 4. PRICE AND QUALITY
Reading: Relationship Between Quality And Price
Video: Factors that Influence the Price of Wine
Career Skills: Making Yourself Clear
Dilemma: Making a Design Presentation
Price Sensitivity is the degree to which the price of a product affects consumers purchasing behaviors. The degree of price sensitivity varies from product to product and from consumer to consumer. In economics, price sensitivity is commonly measured using the price elasticity of demand.
1. Discuss the questions with a partner.
1. How do you understand the term “price sensitivity”?
2. What affects price sensitivity?
3. How would you measure price sensitivity?
2. According to Kimberly Chulis, founder of Core Analytics, LLC, consumers go through a five-step decision making process before buying. Match the decision step in column A with its characteristics in column B.
2. Read the article. Which of the following best describes the subject of the article?
1. Case In the British Department Store
2. Consumers Choose Quality Over Price
3. Quality And Price Relationship: It’s Complicated
3. Are these statements true or false?
1. Price is a decisive factor for buying a product.
2. The lower the price the higher the sales.
Sometimes a higher price can be preserved as a sign of better quality.
The quality and price relationship is often one of the first factors brand positioning consultants will consider when working to improve the marketability of a product. Studies have shown that the price tag is often one of the first things potential customers will look at when deciding whether to buy a product. However, it would be a mistake to assume that a lower price will always automatically lead to higher sales. For some products the opposite may well be the case.
There is a well-known brand positioning legend concerning a British department store, whose marketing department was perplexed when an umbrella, priced at a very reasonably £10, failed to sell. A management consultant solved this problem with the somewhat counterintuitive suggestion of raising the price to £20, after which sales immediately increased. Customers seemed to find the £20 price tag a reassuring confirmation of the product’s quality, whereas the much lower original price had been grounds for suspicion.
1. Answer the questions.
1. What is more important to you price or quality when you buy your food; clothes; technical devices, etc. Explain your point of view and give examples.
2. When you purchase something what other important characteristics do you pay attention to?
3. At what price would you begin to think product is too expensive to consider?
4. At what price would you begin to think product is so inexpensive that you would question the quality and not consider it?
5. At what price would you begin to think product is getting expensive, but you still might consider it?
6. At what price would you think product is a bargain – a great buy for the money?
Video: Factors that influence the price of wine
1. You are going to watch George Miliotes, describing how the terrain and soil of a vineyard can improve the quality and price of a wine.
2. Watch and say in what context these phrases were used:
- oak barrels;
- the vineyard on a slope;
- harvest by hand;
- flavorful and powerful.
3. Answer the questions.
1. What sphere of business is shown in the video?
2. What is special in the way the workers reap a harvest? Why don’t they use machines?
3. What factors can influence the price of the wine?
4. What is the most important one according to George Miliotes?
1. Work individually. Study the information below.
Conditionals are clauses introduced with IF.
The main types of conditionals are Type 0, Type 1, Type 2
and Type 3.
1. We can use were instead of was for all persons in the if-clause of conditionals 2:
If Andrew was/were taller, he
could be a basketball player.
2. In conditionals 2, 3 we can also use could/might/should instead of would:
If I lived out of town, I could
take up gardening.
3. In some conditionals 2, 3 we use mixed tenses. That is, a past simple in the if-clause and would + perfect bare infinitive in the main clause, or a past perfect in the if-clause and would + bare infinitive in the main clause:
If Bob wasn't so lazy (present),
he would have passed the exam easily (past).
2. Match the items on the right to the items on the left in order to make correct Type 0 conditionals sentences, as in the example.
e.g.: 1 – d. If you heat water to 100°C, it boils.
3. Complete the following sentences by putting the verb in brackets into the correct tense. The sentences are about the future.
1. If you (lend) _____ me a little money, I (give) _____ it back to you in a couple of days.
2. If they (get) _____ my message in time, they (be able) _____ to change their plans.
3. What you (do) _____, if the boss (cut) _____ your salaries?
4. If you (fail) _____ your exam, you (take) _____ it again?
5. I (be) _____ angry, if you (not come) _____ home in time.
6. I (cook) _____ a pie, if we (have) _____ guests tonight.
7. Unless the weather (be) _____ fine, we (not go) anywhere.
8. If you (be) _____ careful, you (not do) _____ any mistakes in you test.
9. The store (toss) _____ in a mouse, if you (buy) _____ the PC.
10. If I (not feel) _____ better, I (take) _____ the medicine.
11. My roommate (be) _____ furious, if you (touch) _____ his personal belongings.
12. If you (not tell) _____ me what’s the problem, I (not be able) _____ to help you.
13. Unless you (stop) _____ eating so much, you (become) _____ fat.
4. Write a conditional sentence for each of the following signs. The first one has been done for you.
If you buy food for $100 or more, you will get a bottle of champagne.
You will get______________________________________________
5. In pairs ask and answer questions about what you would do in each of the following situations, as in the example. Use your own ideas.
e.g.: S.A. What would you do if you saw someone committing a crime?
S.B. If I saw someone committing a crime I would call the police.
1. … you / see / someone committing a crime
2. … you / inherit / a lot of money
3. … you / have / a magic wand
4. … you / have / a bad cold
5. … you / witness / an accident
6. … you / invent / the time machine
7. … you / have / 36 extra hours of free time each week
6. Match column A with column B.
6. Circle the correct word or words in brackets.
1. If you knew the truth, (would / will) you tell me?
2. They wouldn’t invite you to their wedding, if they (don’t / didn’t) like you. So they apparently (will / do).
3. If you see Sarah, (will / would) you send her my regards?
4. If you visited me more often, I would be pleased. That’s a pity you (won’t / don’t).
5. If I have time, I (will / would) study French.
6. You would be very upset, if you lost the competition, (won’t / wouldn’t) you?
7. If we catch the next bus, we (will / would) get there on time.
8. If I knew how to help him, I would do it. I am sorry I (don’t / didn’t).
9. Unless they turn the music off, I (will / would) go mad.
10. If I (was / were) you, I would apologise to her.
11. If I (won’t be / weren’t ) so busy I would go to the party tonight.
8. Finish each of the sentences in such a way that it means exactly the same as the one printed before it.
1. I believe that you should go in for sports.
If I …
2. Without good practice, you could fail your driving test.
If you …
3. It would be a waste of everyone’s time to wait for her any further.
If we …
4. You won’t succeed in learning without working hard.
You … unless …
5. Thanks to the presence of a doctor the victim of the accident was give first aid.
6. I can’t see the concert because it’s sold out.
If the play ….
7. We didn’t go abroad last summer since we didn’t have enough money.
9. Rewrite the following as mixed conditional sentences.
a) PAST/PRESENT, PRESENT/PAST
E.g.: I want to become rich but unfortunately I didn’t win the lottery.
If I had won the lottery (Past), I would be rich (Present).
1. I didn’t take French in high school. Now I have less job opportunities.
2. I have to prepare for the exams. I didn’t go to the party last night.
3. She didn’t become a citizen of the United States. She needs a visa to work there.
4. You didn’t wake me up in time. Now I’m late for my classes.
5. I’m not currently rich. I didn’t buy that Porsche we saw yesterday.
b) PAST/FUTURE, FUTURE/PAST
E.g.: You are going to Las Vegas next week. I didn’t know about it in advance, therefore I can’t go with you.
If I had known that you are going to Las Vegas next week, I would go with you.
1. I didn’t save wisely enough. I won’t buy a new car this year.
2. My wife is going to make us a big dinner tonight, that’s why I didn't suggest that we go to that nice Chinese restaurant.
3. Mark didn’t get the job, so he isn’t going to move to Japan.
4. I didn’t go to the match with my friend. I will have to work this evening.
5. Eleanor didn’t go skiing with us this year. She is going to spend more time with her family.
c) PRESENT/FUTURE, FUTURE/PRESENT
E.g.: I have a lot of vocation time. I will go with you on the voyage next week.
If I didn't have a lot of vacation time, I wouldn't go with you on the voyage next week.
1. Sarah is not creative enough. The company won't send her to New York to work on the new project.
2. Jane is not worried about the conference. She is not giving a speech there.
3. If you had more time, I would go to the cinema with you.
4. I won't go to the cinema with you. I’m busy today.
5. I’m waiting for a phone call. I can’t go to bed now.
Career skills: Making yourself clear
There are many methods for quality improvement. One of them is Kansei Engineering that aims at the development or improvement of products and services by translating the customer's psychological feelings and needs into the domain of product design. Kansei Engineering parametrically links the customer's emotional responses to the properties and characteristics of a product or service. In consequence, products can be designed to bring forward the intended feeling and as a result be sold at higher price.
1. Make up a dialogue. You may use the word below as a hint.
You are a famous quality manager consultant. You are interviewed by a journalist. You should speak about the Kansei Engineering principles you follow in you work that brought you success. Give advice to those who want to work in this sphere.
You are a journalist. You take an interview from a famous quality manager consultant. Ask him/her about the principles he/she follows in work, personal traits, attitude towards his/her business that brought him/her success.
- The first thing that comes to my mind is...
- I'm of the opinion that...
- First look at the opposite point of view.
- It is only partly true that...
- Take for example...
- There can be no doubt that...
- It is for this reason that I believe that...
- My own view of the matter is...
Dilemma: Making a design presentation
Process Task: Suggest a design presentation of some manufactured goods. You can use the following project as an example.
LASER MOUSE PRODUCT LINE
Package Design Goals:
- Differentiate the laser product line from other Microsoft products and competitive items
- Successful form factor introduction across numerous worldwide retail channel partners
- Partnering with marketing to add "pizzazz" to the package
- Consistent with hardware product packaging as well as Microsoft corporate brand
- Continuity of red around the mouse to provide strong tie to rest of Microsoft hardwareproduct lineup
- Black with red precision "laser" graphics to communicate sophisticated technology
Key Design Challenges and Accomplishments:
- Shipping/transportation of a form factor that is basically a cube; potential for getting fewer on a pallet or in a container. Yet, the creative product orientation within the shipping carton resulted in even more product on a pallet and in a container; comparable to more traditional, less unique packaging
- Getting across the message that the new line offers the latest and greatest in technology
- Creating a sophisticated package that ultimately offers interesting positioning on shelf and is noticeable and striking in the mouse aisle, thus creating opportunities for exciting and creative displays in retail
The angular form factor and selective holographic print treatments for Microsoft's first line of laser mouse products create a high-end "wow" factor that is eye-catching yet sophisticated. The uniqueness of the package adds a sense of flair that engages the consumer to pick up the package, explore the product, and transact the sale.
Work in pairs and work out custom labels or such kinds of products as:
3. You are to write a slogan, contents and instructions. Provide sketches illustrating general idea of design. Exchange ideas with your group mates and choose a winner.