To some degree, it's true that you get what you pay for with digital cameras. Inexpensive digital cameras generally come equipped with few features, a low-megapixel image sensor, and no optical zoom lens. They produce fair to good but not excellent images. At the high end of the spectrum, relatively expensive digital cameras usually offer a long list of features, and image quality tends to be very good or excellent. The trick is to match your needs and expectations with your pocketbook. For example, there's no sense buying a stripped-down, bargain basement camera if you have your heart set on a 4-megapixel model with manual settings. Likewise, forking out big bucks for an everything-but-the-kitchen-sink digital camera when you're really just a point-and-shoot user doesn't pay. Here's a quick primer on the types of digital cameras out there, what they offer, and how much you should expect to pay.

Beginners ($39 to $99).

These are such simple, limited, point-and-shoot devices that some people erroneously think of them as toys. Most have a fixed lens (no focus, zoom, close-up, or macro capability), a simple optical viewfinder (no LCD viewfinder), no flash, and only built-in memory (no removable memory card). Resolution is somewhere in the range of 640-by-480 (VGA) to 1,024-by-768 (XGA), and most of these cameras use less expensive CMOS rather than CCD image sensors. What distinguishes them is size: most are tiny devices that dangle from a key chain or fit in the palm of your hand.

Look for a digital camera in this price range if you want the least expensive, easiest-to-use unit that's also easy to take anywhere, and you aren't particularly concerned about getting only poor-to-fair image quality.

Economy ($100 to $199).

Though they don't have many frills or features, these cameras often come with an LCD viewfinder, removable memory, and a 1- to 2-megapixel image sensor. They offer point-and-shoot simplicity, image quality is generally good to very good, and most feature digital zoom (which isn't as good as an optical zoom lens).

Look for a digital camera in this price range if you are on a limited budget, don't need an optical zoom lens, and dislike setting f-stops and shutter speeds manually, or if you're not entirely comfortable with new technology.

Consumer ($200 to $499).

The number of features, usability, and pixel count of these units have improved significantly over the past year, and probably represent the best bang for the buck. Although they generally remain relatively simple to use, most are between 2 and 4 megapixel devices, have auto-focus zoom lenses with macro capability, and include such basic features as built-in flashes, LCD viewfinders, and slots for removable memory cards. Additional features often include exposure compensation, manual f-stops and shutter speeds, white-balance controls, burst mode capability, video out jacks, the ability to capture short video clips, and program modes for photographing at night, making portraits, shooting black-and-white or sepia photos, and capturing landscapes.

Look for a digital camera in this price range if you want an optical zoom lens, film-like image quality, larger prints, limited manual control, and some special features, such as support for movies and panoramic shots.

Advanced consumer ($500 to $900).

Expect a long list of features, great picture quality, and a 3- to 5-megapixel image sensor. Most units have excellent auto-focus zoom lenses; several program modes; manual f-stop and shutter speed settings; and aperture and shutter priority modes. They also have faster burst modes than lower-level cameras, can do auto-bracketing, and incorporate image enhancement capabilities like flash-intensity adjustments and color, contrast, and brightness controls. You may even find special features like wireless remotes, time-lapse photo controls, manual focus, and the ability to display histograms and extensive metadata.

Look for a digital camera in this price range if you need certain image effects or improvements and are willing to attempt manual settings, you want photo-quality enlargements, or you desire a full range of features and functions.

Prosumer ($950 to $1,500).
Designed primarily for serious hobbyists and budget-minded professional photographers, prosumer cameras offer an array of features and advantages like faster performance, 4- to 5-megapixel image sensors, precise control, and superior image quality. Most models offer optical or electronic eye-level, through-the-lens viewfinders, but prosumer lenses are not interchangeable, and the image sensors are not as large or sophisticated as those in pro models. That means that image quality, while excellent, is not quite as good as with pro cameras.

Look for a digital camera in this price range if you want a camera with the look and feel of a pro model, an excellent zoom lens, relatively fast performance, the ability to produce large, pro-quality images, and extensive manual control (basically, most things that pro models can do, but at a far lower cost).

Professional ($2,000 to $8,000).
Professional digital cameras are more systems than cameras because they accommodate interchangeable lenses and a variety of accessories. Their sophisticated 4- to 6-megapixel image sensors produce large, top-quality photographs that are indistinguishable (or even better) than those produced by film cameras. Although prices have tumbled considerably, pro cameras remain very expensive, especially because they are sold as bodies only. You must purchase lenses and accessories separately. These cameras have a wide variety of controls that let you manipulate nearly everything that affects a photograph.

Look for a digital camera in this price range if you want a camera system that gives you lens interchangeability, true film-camera-like performance and image quality, total manual control, the ability to work faster, and ruggedness and reliability—if price is not an issue.