Posted in Marketing and Strategy Terms, Total Reads: 464
The basic meaning of the word Cheap is “A very low cost or expense”. So any product or service which has a low cost is cheap. Same cost can be perceived as high and low by people belonging to different income groups.
For Example – A toffee which costs INR 1 is considered to be cheap by nearly everyone. At the same time, A Ferrero Rocher chocolate costs INR 60 for 3 pieces, it can be cheap for some people and expensive for some people as per their income and wealth.
It is used in various connotations. A cheap product or service indicates to its low quality along with lower price. The counterfeit products are a good example of cheap. As they are relatively low in price and their quality is also substandard.
For Example – A Samsung Note 3 price is around INR 24000. We may get a china made product which will look similar to the original Note 3 but its price will be very less (around INR 10000) but its performance will be very different from the performance of an original Note 3 from Samsung. So it is apt to call it a CHEAP product as it has a very low cost and low performance as well.
Cheap is also used with money to give a different meaning. Any credit or loan which has a low interest rate or the setting up of low interest rates by any bank provides cheap money. A Cheap money is a very good option for borrowers as they pay a very low cost for holding money (interest paid for loan).At the same time it is a very bad scenario for investors, who will observe similar low interest rates on investments like fixed deposits, savings accounts, mutual funds etc. Cheap money can have detrimental economic consequences.
For Example -
-A credit card with a 0% introductory APR for 12 months