This research includes knowing what you want to purchase, where to purchase it, what pricing techniques are being used, and what is the most reliable source of information about the product. Based on marketplace factors, you can create and evaluate a list of product attributes. Most purchasing situations have several acceptable alternatives. Each alternative should be evaluated on the basis of the factors you determined when you originally decided to make the purchase. A number of studies have shown a low relationship between price and quality, especially for expensive technical equipment like a computer.
Price analysis is critical.
However, price is only one factor in the purchasing decision. Other important factors are the quality of the product, the service contract that comes with the product, and the terms of the manufacturer's warranty. Sellers frequently offer different prices and services or promotional offers to create a competitive environment. A smart shopper will take advantage of those situations, but it can get complicated. To help simplify your analysis, consider using a consumer-buying matrix like the one shown on page 243 of your textbook.