Explain the influence of globalisation on the interaction of price and quality. - HSC - SSCE Business Studies - Question 27 - 2018 - Paper 1

Global marketing strategies, such as global branding and standardisation, play a crucial role in how price and quality interact. Companies often pursue a global marketing approach to maintain brand consistency and attract international customers, which can lead to a perceived increase in quality.

With globalisation, firms can engage in competitive pricing due to broader market access. This results in lower prices for consumers as companies can source cheaper materials and labour, enhancing the affordability of products without significantly compromising quality.

Consumers may perceive quality differently based on globalisation. Global brands often command higher price points due to associations with better quality, leading customers to expect higher standards. Conversely, new entrants into the market can disrupt this by offering quality products at lower prices.

For instance, examining a case study of companies like Apple and Nike demonstrates how globalisation enables these brands to maintain high prices while ensuring quality, leveraging their global supply chains, and branding strategies to reinforce perceived value.