Price comparison

[Silvestar4]

Quality, design and branding are clearly very important in determining price. It is true for trivial items such as sandwiches and it is also true for major purchases such as cars. For example, take two similar small hatchback cars, the Daewoo Lanos and the Audi A2 SE. The Daewoo costs pound 15620 and the Audi costs 75 percent more at pound 15,620. On the face of it these two these two hatchbacks are very similar.
So what do these examples tell us? If we assume that customers are not complete idiots which more money than sense, then from their point of view the Audio represents a far more attractive combination of raw materials than the Daewoo.