Price Quality Strategy Matrix

What is Price Quality Strategy Matrix? The below diagram explains Price Quality Strategy Matrix. This chart shows an important concept or a framework to help one run their business, improve company's strategy, internal processs, enhance project management, technology, and client experience.

The Pricing Strategy Matrix is a tool that’s used to determine the best price for a product or service. A pricing strategy refers to the method businesses use to decide the right price for their services or products.

As you can see in the price quality matrix, whether to keep your prices high or low can be decided on how the customer perceives the competition. If the competition is offering high value products, at a high price, then you can penetrate the market by having a lower price.

The aim is to help companies position their products or services relative to competitors as perceived by the market, and consider their pricing strategy accordingly. You can use the Price – Quality Strategy Model to review competitors’ products and services and review their strategies. Why do they charge more? Why do they charge less?

Price Quality Strategy Matrix