Perceived Quality

What is Perceived Quality?

customers perception of the overall quality or superiority
first, is a perception by customers.
It differs from several related concepts as:
Actual or objective quality:
the extent to which the product or service delivers superior service.

Product-based quality:
the nature and quantity of ingredients, features, or services included.

Manufacturing quality:
conformance to specification, the zero defect goal.

Perceived Quality

An Intangible, Overall Feeling about a Brand

a summary, global construct, usually based on underlying
dimensions

Cannot Necessarily be Objectively Determined

as consumers perception & judgments are involved.

Defined Relative. to Intended Purpose/Alternatives

depending on the purpose, use a different set of criteria.

5 Ways Perceived Quality Generates Value

1. Reason-To-Buy (RTB)
influence which brands are to be considered;
lack motivation, info, ability or resources to process.
RTB is linked to purchase decision & can make market programme effective.

2. Differentiate/Position
a principal positioning characteristic/dimension of a brand:
super premium, premium, value, or economy entry.

3. A Price Premium
increase profits, and/or provide resources for reinvestment;
reinforce the perceived quality:You get what you pay for.

4. Channel Member Interest

the image of a channel member is affected by the products or services included
in its line.

5. Brand Extensions
exploit perceived quality to enter new product categories.
3

Perceived Quality-Performance relationship

Perceived Quality & Business Performance

reputation for high quality
is the most-mentioned sustainable competitive advantage in all across
business groups:
high-tech, service, and manufacturing.

Perceived Quality & Profitability Relationship

Jacobson and Aaker (1987) found that perceived quality:
1. Affects market share;
2. Affects price;
3. Has a direct impact on profitability;
4. Does not affect cost negatively.

Perceived Quality
DIMENSIONS OF PERCEIVED QUALITY IN THE PRODUCT CONTEXT

- 1. Performance
primary operating characteristics of the product.
2. Features
secondary elements of the product.
3. Conformance with Specifications
traditional, manufacturing-oriented view of quality.
4. Reliability
the consistency of performance and the up time.
5. Durability
reflects the economic life of the product.
6. Serviceability
the ability to service the product.
7. Fit and Finish: (appearance & feel of quality)
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Signals for High Quality

Achieving high quality is not enough;

actual quality must be translated into perceived quality.
Visible dimension can be affect perceptions about more important
dimensions that are hard to judge:
Stereo speakers:
Detergent:
Tomato ketchup:
Cleaners:
Supermarket:
Cars:

Intrinsic cues: a brands product features;

Extrinsic cues: other associations
i.e., amount of advertising, brand name, or price.

Price as a Cue

The relevance of price as a cue depends on:

other cues available, individual, and product involved.
Relevance is high when other cues are not available:
if intrinsic/extrinsic cues available, rely less on price.
Individual Differences:
depends on ability/motivation to evaluate the quality;
their value of quality.
Category in which quality is difficult to evaluate rely on price:
wine, perfume, and durables.
Relevance low in product classes with small price difference.

Mapping Perceptions

Position - located in the mind of the consumer

how people perceive products in a competitive situation can be
mapped.

Perceptual Map
map product locations within consumers mental space.

also useful for repositioning products whose position is unfocused or

inappropriate:
can show the differences between the products current and
desired positions.

Perceptual Mapping

Differentiation (What you do to an offering): creating tangible or

intangible differences on one or more attributes between competitive
offerings.

Positioning (What you do to the minds of customers): strategies to

differentiate a firms offering in the minds of target customers; distinct,
important, & sustainable image.

Mapping: techniques to develop differentiation and positioning strategies

by visualizing the competitive market structure as perceived by
customers.

Perceptual Mapping investigates in the following areas ...

attribute
perceptions

perceptions of
similarities

preferences

measures of
behavioral
responses

of existing products
(and new concepts)

Perceptual Mapping ratings and and dispersion

Ratings of nine brands of notebook computers on several attributes

Attractive
Light
Unreliable
Plain
Battery life
Screen
Keyboard
Roomy
Easy service
Expandability
Setup
Common
Value
Preference

B1

B2

B3

B3

B4

B5

B6

B7

B8

New

5.1
6.0
3.4
1.5
3.3
3.5
2.6
5.5
4.5
5.5
5.6
4.1
3.5
7.4

3.6
3.5
4.1
4.1
4.9
5.3
3.5
4.3
4.9
4.3
3.5
3.5
4.8
3.4

3.5
5.0
4.5
2.9
4.3
3.4
2.5
5.4
3.3
5.4
5.6
3.3
4.4
4.8

5.4
3.9
2.1
2.3
4.1
6.4
3.4
3.1
5.0
3.1
5.4
2.9
3.6
6.6

3.9
3.3
4.5
4.5
3.9
5.4
3.8
3.4
4.4
3.4
2.5
4.0
3.6
4.4

4.8
5.3
2.7
2.7
3.0
5.2
3.3
3.3
4.5
3.3
4.2
4.3
2.7
7.4

5.2
5.0
4.5
3.5
3.5
3.3
2.8
4.7
3.3
4.7
5.2
2.2
3.2
7.1

4.0
2.5
3.7
4.3
6.2
6.0
5.0
3.5
4.7
3.5
3.3
4.2
4.7
3.8

5.2
5.5
2.5
2.2
3.5
3.3
4.3
4.3
3.8
4.3
5.8
3.3
3.5
6.9

4.0
2.5
3.8
5.2
4.0
4.8
4.7
4.2
4.5
4.2
2.5
4.2
4.0
3.3

Perceptual Mapping spread of brands

Illustrative

Implementing positioning through the elements

Leverage strategically advantaged resources:

Product characteristics

Features, performance, durability, reliability, style, etc.

Service attributes

Delivery, installation, consultation, training, repair, etc.

Personnel

Competency, credibility, courtesy, responsiveness, etc.

Brand image

Symbols, emotion, personality, etc.

End of Deck