Impact of Product Price and Brand Name on Quality Perception Essay

In ordinary usage, price is the quantity of payment or compensation given by one party to another in return for goods or services. In modern economies, prices are generally expressed in units of some form of currency (For commodities, they are expressed as currency per unit weight of the commodity, e.g. Tshs per kilogram.) Although prices could be quoted as quantities of other goods or services this sort of barter exchange is rarely seen. Prices are sometimes quoted in terms of vouchers such as trading stamps and air miles. Brand is the â€Å"name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers.†Initially, Branding was adopted to differentiate one person’s cattle from another’s by means of a distinctive symbol burned into the animal’s skin with a hot iron stamp, and was subsequently used in business, marketing and advertising. A modern example of a brand is Coca Cola which belongs to the Coca-Cola Company. A brand is the most valuable fixed asset of a Corporation. In general, the product is defined as a â€Å"thing produced by labor or effort In marketing, a product is anything that can be offered to a market that might satisfy a want or need. 2.0 PROBLEM ANALYSIS 3.0 OBJECTIVES 3.1 general objectives name on customer’s quality perception of product To assess the effect of price and brand 3.2 specific objectives * To assess the effect of price on quality perception * To assess the effect of brand name on quality perception HYPOTHESES Null hypotheses * There is negative relationship between price and quality perception * There is negative relationship between brand name and quality perception Alternative hypotheses * There is positive relationship between price and quality perception * There is positive relationship between brand name and quality perception LITERATURE REVIEW The consumer quality perception has been a debatable topic for the past so many years around the world; previously many researchers have studied this topic and found exploratory findings in different contexts. The central purpose of the study is to investigate the impact of product price and brand name on consumer’s quality perception of the product. The marketer must inspect the consumer buying behavior by consumer psychological behavior and social concerns (Shabbir et.al 2012). According to Kurtulus et al. (2005) the influence of consumer psychographics on their tendency to purchase retailer brands, that must be valid and reliable so the consumers are more price conscious and prefer and purchase retailer brands. Most of the consumers need convenience and quality products that strongly motivate them to buy the same product more frequently in the future (Ahuja, Gupta, & Raman, 2003). Ahmad, & Vays, (2011) found that the pre-decision time of consumer purchasing behavior recognized solid link with the desire purchasing Behavior of the consumers. Product price The product price factor is always been an important factor in customer/consumer buying process in every context. They always examine price and brand name information differently when they are making judgments on the dimensions of quality: ease of use, usefulness, performance, durability, and status (Brucks, Zeithaml & Naylor, 2000). The marketing managers have to think broader to have a common on two factors such as capability control and strategic dynamic pricing policies (Moe & Fader, 2009). The customer must be facilitated with some packages in products. Bie & Chiao (2001) found that the marketing managers should highlight the service quality as well as but also price fairness in total consumer satisfaction program. According to Chang & Wildt (1998) the price has its significant influence on perceived quality when it is the only information indicated available. According the study of consumer prefers to have a price and quality rather than technical aspects in durable goods (Chui et al. 2006). Brand name Another benefit of branding , from the customer view point,is its ability to increase purchase confidence and enhance customer loyality (Aaker,1991 ; chaudhuri & holbrook ,2001).Brands work by facilitating the the customers buying decesions process.(Doyle,1990).In a competitive market customer face hundred of products and messages competing for attention.the buying decisions are reliant on their past experience and perception about a product and his habitual buying process is associated with brand loyalty