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Digital Economy

Non-Price-Effects

In competition economics, quality and price play an equal role. Quality effects are more difficult to measure than price effects, but are an important part of consumer demand. Quality is a subjective concept that each person perceives differently.


Economic logic dictates that consumers are influenced by both price and quality considerations in their purchasing decisions. The perception of quality is the value or benefit that consumers derive from a product or service. Possible indicators for measuring quality are attributes associated with a specific product or service.

 

EE&MC uses qualitative and quantitative tools such as customer surveys to determine the effects of quality changes. How consumers attribute “quality” is particularly important for defining relevant product markets in the digital economy.

 

If you want more information on how we analyse quality in digital markets, please contact us.

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