PPT 4602

AGRIBUSINESS RESEARCH METHODS

LITERATURE REVIEW
PERCEIVED QUALITY

GROUP A MEMBERS : BAH ABUBACARR A.(150733) KAU PEI FANG(156833) NURSHAHIRAH BINTI WAHID MARICAN(157335) SHAHZUANDY BIN ZULKIFLI(158671) NORAZWA BINTI MOHAMED HARIRI(159332) WAN NUR SYAZNIN BT WAN ABDUL RAZAK(160219)

LECTURER NAME :

Dr. Juwaidah Binti Sharifuddin

DEFINITIONS OF PERCEIVED QUALITY Perceived Quality (PQ): Perceived quality is a critical element for consumer decision making; consequently, consumers will compare the quality of alternatives with regard to price within a category (Jin and Yong, 2005). According to Davis et al. (2003), perceived quality is directly related to the reputation of the firm that manufactures the product. However, National Quality Research Center or NQRC (1995) defined perceived quality as the degree to which a product or service provides key customer requirements (customization) and how reliably these requirements are delivered (reliability). Whereas Aaker (1991) and Zeithaml (1988a) said that perceived quality is not the actual quality of the brands or products, rather, it is the consumers judgment about an entitys or a services overall excellence or superiority. Consumers often judge the quality of a product or service on the basis of a variety of informational cues that they associate with the product. Some of these cues are intrinsic to the products, whereas others are extrinsic. According to Aaker and Joachimsthaler (2000), perceived quality is a special type of association, partly because it influences brand associations in many contexts and partly because it has been empirically shown to affect profitability. As Zeithaml (1988) said that perceived quality is the consumers judgment about a products overall excellence or superiority. Zeithaml (1988) emphasized that perceived quality is: (1) Different from objective or actual quality, (2) A higher level abstraction rather that a specific attribute of a product, (3) A global assessment that in some cases resembles attitude, and (4) A judgment usually made within a consumers evoked set.

Similarly, the definition of perceived quality by Aaker (1991) is the customers perception of the overall quality or superiority of the product or service with respect to its intended purpose, relative to alternatives. In fact, the perceived quality is different from actual or objective quality, product-based quality, and manufacturing quality (Aaker, 1991) such 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 defects" goal.

It can be viewed as the difference between overall quality and undetected quality. Furthermore, perceived quality may lead to consumer satisfaction, which is determined by perceived performance and expectation (Chaudhuri, 2002). Although there are a lot of definitions from many scholars, each of the definition has shared common meaning that is, perceived product quality is the consumers perception of overall components of product which both tangible and intangible characteristics. It may also include performance, features, reliability, conformance, durability, serviceability, and etc. Thus, it differs from several related concepts. Perceived quality is an intangible, overall feeling about a brand. However, it usually will be based on underlying dimensions which include characteristics of the products to which the brand is attached such as reliability and performance. To understand perceived quality, the identification and measurement of the underlying dimensions will be useful, but the perceived quality itself is a summary, global construct. NQR Perceived quality is defined as the consumers judgment about the superiority or excellence of a product (Zeithaml, 1988; Aaker and Jacobson, 1994) which is based on subjective perceptions. Perceived quality is an attitude that results from the comparison of consumer expectations with the actual performance (Parasuraman et al.,1985). Considering quality studies in ready-to-wear sector, it is observed that the consumers perception of clothing quality is multidimensional rather than unidimensional (Lennon and Fairhurst, 1994; Hines and ONeal, 1995; Stone-Romero et al., 1997; Swinker and Hines, 2006). Perceived quality in ready-to-wear can be classified into two dimensions as intrinsic and extrinsic product cues (McConnell, 1968; Jacoby et al., 1971; Olson and Jacoby, 1972; Szybillo and Jacoby, 1974; Zeithaml, 1988; Heisey, 1990; Fiore and Damhorst, 1992; Kirmani and Zeithalm, 1993; Richardson et al.,1994; Stone-Romero et al., 1997). Intrinsic cues are

product attributes which cannot be changed or experimentally manipulated without also changing the physical characteristics of the product itself such as nature of fiber (Olson and Jacoby, 1972). On the contrary, extrinsic cues, such as brand name and price, are not a part of the physical product and can experimentally be manipulated without changing the physical characteristics of the product (Olson and Jacoby, 1972). Swinker and Hines (2006) further classify perceived quality into four categories as intrinsic, extrinsic, appearance and performance for ready-to-wear. Intrinsic cues are construction, fabric, notions/findings; whereas brand, country of origin and cost are included under extrinsic cues. For appearance, color, design features, fashionorientation, feel of fabric and suitable style cues are used; and for performance, care, design features, fabric hold shape, fabric pill, wrinkle and durability cues are used. Considering the relationship between perceived quality and brand loyalty, several studies indicate a positive impact of perceived quality on purchase intention (Rogers and Lowell Lutz, 1990; Tsiotsou, 2006); and brand loyalty (Lee et al., 2010) exists. The relationship between price and product quality has received a substantial amount of attention by researcher, particularly since the mid-1980s. A conceptual model proposed by Monroe and Krishnan (1985) defined the influence of price on buyers perceptions of product quality, monetary sacrifice, perceived value, and willingness to buy. The model indicates that price has a positive affect on a consumers perception of sacrifice. In other words, the model suggest that as price increase, a consumers perception of both quality and sacrifice will increase. Therefore, as long as a consumers perception of quality is greater than the perception of sacrifice, the consumer will have a positive perceived value for product. The model also indicates that there is a positive relationship between the consumers perception of value and the consumer willingness to buy a product. In Grnroos' Perceived Service Quality model, expectations are a function of market communications, image, word of mouth, and consumer needs and learning, whereas experience is a product of a technical and functional quality, which is filtered through the image. Grnroos more clearly shows the existence of a perception gap, although there is no suggestion of "delighting" only of narrowing the gap. However the model has more practical application as it shows factors that contribute to each side of the gap. It demonstrates that the supplier can affect both sides of the gap most notably by managing customer expectations. In addition it illustrates that the customer experience is a product of the image of supplier

quality, not just the actuality. Clearly marketing as well as process and technical quality has an effect on the perception gap.

IMPACTS OF PERCEIVED PRODUCT QUALITY The perceived product quality has a powerful effect on various variables about business performances which can be described as follows: Profit margins Brand Power and Market Share Brand Equity o Efficiency and effectiveness of marketing programs o Brand loyalty o Prices/margins o Brand extensions o Trade leverage o Competitive advantages. Perceived Value
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 Perceived quality of a brand provides a pivotal reason-to-buy, influencing which brands are included and excluded from consideration, and the brand that is to be selected. Perceived product quality can be used as a positioning strategy of various products. Perceived product quality advantage provides the option of charging a premium price. Aids in gaining distribution Returns on Investment (ROI) and Profitability

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