Information symmetry, quality perception, and market dynamics

Purpose – The paper aims to study market dynamics in the backdrop of information symmetry and quality perception. The position of high quality products (HQPs) in the market is a focus of this analysis. Also, an attempt is made to unfold the prevailing parametric relationships in the market of developed and developing nations. Design/methodology/approach – Related literature is reviewed and investigation is attempted into market dynamics. System dynamics is used for preliminary modelling and analysis. Simulation runs are carried out to assess the impact of company reputation and advertising on market parameters. Findings – Behaviours of market parameters are unraveled. From using correlation analysis and analytic hierarchy approach, the policy measures to improve the HQP position in the market are revealed. Research limitations/implications – The study of some aspects of market dynamics is attempted. Further, study and modelling are required to completely understand the market behaviour. Practical implications – The model has a practical relevance to implement quality perception enhancement by deciding on the policy mix. Originality/value – This is a start for systems analysis of the market, which may offer a long‐term foundation to market dynamics.