My answer is: everything is based on price, not value. Business purchase materials, products, services and employees based on price not value. The old saying "you get what you pay for" still holds true, however most business figure it's just the cost of doing business.
Example, if a 1 pound box of brand (A) widgets cost "X" and a 1 pound box of brand (B) widgets cost "X+ 1/4" for this example let us assume that brand (B) widgets are of better quality and longer lasting thus providing a better value at a small cost increase.
Most business will purchase brand (A) widgets based on cost alone. Never mind you get a better VALUE with brand (B) widgets.
I believe someone sold GEICO a inferior product with the whole "Cave Man" advertising
campaign, it's dumb! It's not cute, it's not funny, it makes no sense and it insults my sensibilities.
GEICO may have made their advertising decisions based on price rather than value, I don't know, but I say they made a bad decision.
What do you think?
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