University of Twente Student Theses


More Quality - Higher Price ?

Zich, Christopher (2017) More Quality - Higher Price ?

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Abstract:A relation between price and quality and vice versa is generally widely believed. In theory the relationship had been studied a lot and still there are different notions. Thus this study investigates is a relationship between quality and price exists and what direction it has. Current works provide contrasting evidence on the direction of this relationship based on different; micro economics and marketing´s cost-plus pricing technique assumes a positive relation; total cost of ownership and information asymmetry can either assume a negative relationship or a non existent relationship. Within this study an empirical test of a dataset of 400 tenders retrieved from an online system for electronic tenders is used. In contrast to former researches the tenders represent the whole market instead of only one industry, company or product group. An initial analysis provides slopes close to zero with low significance on correlation. Theory suggests dividing the data into four different homogenous groups: service and products, industries, product groups, amount of bids, tenders by themselves. Each segment supports the initial analysis of no measurable relation with having an almost null coefficient and no significant correlation in most of the cases.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
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