Is Quality only @ Premium Price?

Recently I had the chance to discuss with my marketing classmates about 'Is Premium Segment Marketing the only way to establish product quality'

The logic behind the point is that the consumer may raise the question that 'if it is a high quality product then why is it priced lower' because  the consumer has a perception that if it is low priced then it is a 'cheap product' & if it is costly then it must be good. Does that mean is it necessary to have premium products to justify that the brand has a higher quality? Not necessarily, companies might charge premium price for a similar  product by enriching the marketing offer with value added services.

Of course catering to the premium segment will help the brand to establish its product quality when it moves to the mass market. There are companies who have established quality in spite of their products priced lower.  For example,Dell came with the low price tag than HP or Sony for laptops of the same configuration. Of course there are differences in the product design,service etc,but Dell has earned its trust among consumers that it offers quality.Dell is now  tapping the premium segment with its  XPS series which has a price tag around Rs.1 Lakh.

It is necessary that brand of the product or the company should have a good reputation among consumers regarding quality & not as a "cheap brand"