Quote Originally Posted by tony
Why? In the automotive industry I would tend to think price goes a lot further than service. Toyota for example, in your reasoning Lexus would be more lucrative than Toyota itself when that is not the case.

It does depend on the market you are in but Quality and Service doesn't pay big dividends in a highly competitive market. Imagine if a company came along and decided they wanted to sell ultra expensive televisions, people would laugh at their products because there is so much to choose from.

I could explain further but I'm kind of tired, I'll get into it tomorrow if people respond.
Actually, your television example shows exactly how it depends on what kind of business you are in.

If I were buying a plasma or lcd for my living room for example, I would not mind paying more for the higher end model, which will give me a better picture resolution and rock solid built, and long life (Quality), a solid manufacturer warranty AND support if i need to call in (Service), rather than buying a no-name LCD from Cheapomart just for the price, and risking it die on me one day over the 90 days warranty