Perceived Quality: How Branding Makes All The Difference
What is perceived quality, and what is the psychology behind it?
The phrase "perceived quality" refers to how your customers judge the quality of your product or service according to their expectations and in comparison to how they judge the quality of similar products and services. For example, if you require a new smartphone and decide to purchase one, perceived quality is how good or excellent you feel that phone and even the brand that produced it is.
Perceived quality influences the degree to which a customer is devoted to and pleased with a product or service. A product's perceived quality is an intangible indicator of its overall quality that is entirely based on the consumer's perception (that it is the best in its market).
Many people think that when we talk about perceived quality, customers barely take factual or objective qualities like the raw materials used, the manufacturing process, the warranty, or even the after-sales service of the product into account. But this is not true. It is customers' actual knowledge of these factors that all build up and influence their perception of your product as a "high quality or low quality" product. Elements like the price of the product, sometimes how trendy it is, or marketing equally add up.
How we determine whether or not something is good is influenced by factors like how we feel, what we expect from it, our past experiences, and even what others say about it.
The role of perceived quality in marketing
In 2007, two days before the launch of the Apple iPhone, NPR, an American organization, released the publication "Seven Things to Consider Before Buying an iPhone". Before the Apple iPhone, Blackberry and Nokia were top of the competition at the time. But according to NPR's publication, Apple's iPhone wasn't even for sale yet, but already, consumers were lining up to purchase the gadget.
This poses the question "What was the difference between the iPhone and those that were in the market?
Looking at the above screenshot and as NPR wrote:
"The most eye-catching detail is, of course, the touchscreen interface. You use your fingertips to access all of the iPhone's features: the music player, Web browser, calendar, etc."
On the other hand, below is what the competition looked like at the time:
All these features and the marketing approach came together to create a perceived high quality among customers. In the end, Apple was able to sell 270,000 units of the first iPhone in its first two days at $499 each.
This shows the significance of perceived quality in marketing and how it influences purchase. But another question is, how did the iPhone influence the marketing and buying decisions of customers that they lined up to purchase even before it was up for sale?
For one, we see that the iPhone was touted by Apple as a "nothing that no one has ever seen" gadget that incorporated a phone, an iPod, and an internet communication device into a single, svelte compact. This creative design spurred a sense of high quality, innovation, and disruptive technology among the target audience. This also made customers willing to pay more for it.
Since Apple already succeeded in establishing itself as a brand that creates high-quality, beautifully designed products, it was easy for the target audience to prepare to pay a premium because of the brand view that owning an iPhone was a refinement and taste.
During the marketing of the iPhone, the features, appearance, and functionalities were the focus of Apple's marketing campaigns. This marketing repeatedly emphasized that this was a high-end product and illustrated how it might make some people's lives better.
The influence of perceived quality on marketing is profound. It makes customers believe that the product in view is of better quality compared to others. As a result, they're willing to pay for it. In many cases like that of Apple, the sense of excellence not only stimulates early sales but also encourages customers to be loyal and continue to buy from your company.
Why should you value perceived quality as a startup?
Perceived quality is important to startups for many reasons. These reasons include the following:
- It influences trust and credibility:
When you're a new player in the market, people don't know much (sometimes nothing) about you. But you can gain target customers' trust through perceived quality. Customers are more inclined to trust your startup's reputation if it consistently provides high-quality goods or services.
- Competitive advantage
As a startup, you get to compete with more established companies that have more stable finances and a large market share. For this reason, you need perceived quality as armor. Because it gives the target audience the reasons to want to try your company. You have a competitive advantage if you can persuade customers that your product or service is at least as good as that of larger companies.
- Customer attraction and retention
Startups usually need to swiftly draw in and retain customers. High-perceived quality not only attracts new customers but also keeps the ones you already have. Consider Netflix as an example. When they first launched their streaming service, they allowed users to stream their movies directly at home through the internet. This drew and maintained subscribers. And according to Britannica.com, Netflix streaming services became the biggest revenue generator with more than 200 million subscribers in 2021.
- Pricing advantage
If consumers think of your product as premium, you have additional pricing options. People are willing to pay more for quality, meaning you can raise your prices a little. A good example is the fashion business, where premium brands like Louis Vuitton and Gucci can fetch high prices due to their reputation for great quality.
- Attract Investors
Perceived quality is important for startups looking for investors or funding. Investors who see a startup's dedication to quality are more willing to back it because they think it will result in long-term success. This is one of the criteria investors at Shark Tank use to judge whether or not they should make investment decisions when entrepreneurs come to pitch their business ideas.
- It enhances scale and growth
Maintaining perceived quality is essential if you want to grow your startup. It makes sure that when you expand and serve more customers, you maintain the standard of excellence that initially drew them in. For instance, Amazon began as an online bookstore but has retained its reputation for quality and convenience as it grew into a major worldwide e-commerce player.
- It lowers marketing expenses
As a startup, if you succeed in establishing your company as a high-quality brand, customers will be more willing to spread the word about your product or service because they believe it to be of excellent quality. Even well-known brands like Apple profit from this. Everyone agrees that Apple is a high-quality product, and because of this, its marketing costs are significantly lower than those of competitors like Samsung.
What are the factors that influence perceived quality?
- Performance and features of the product
This is possibly the most obvious consideration. Based on how well a product fulfills its intended purpose, consumers evaluate its quality. Reviews of the iPhone said it was an internet Jojo, it was a smartphone, a music player, and more. It had a touchscreen and looked like a regular computer, which meant that users could access the internet as with regular computers, etc. All these added up to why consumers had to line up to buy the iPhone before it was even up for grabs. The perceived feature wasn't only listed but enhanced by the advertisement of the product, which presents the public with something absolutely exclusive.
- Brand Reputation and History
A brand's history and reputation have a significant impact on how its quality is regarded. Brands like Coca-Cola, Amazon, Apple, and Toyota, which have a long history of producing dependable and high-quality goods, profit from perceived quality.
- Price
Surprisingly, the perceived quality of anything can be influenced by its cost. Why? Because perceived quality is highly connected with psychology—how the human mind works. People frequently equate higher costs with higher quality. So long-established luxury brands like Rolex leverage it to communicate exclusivity and quality by charging more for their products.
- Design and aesthetics
A product's aesthetics and design have a significant impact on how its quality is perceived. Products that are sleek, and aesthetically beautiful are frequently thought to be of superior quality.
- Reviews/Ratings from previous customers
Reviews and ratings from previous customers are very important to consumers in this era. Positive ones increase perceived quality, while bad reviews will have the opposite effect. Products sometimes acquire a quality perception when they receive a large number of positive reviews.
- Advertising and marketing
The way a brand or product is portrayed in advertising and marketing campaigns is very important. Even though a product is similar to that of competitors, effective marketing can create the impression that it is of a higher quality.
- Packaging
A product's packaging can affect how people perceive its quality. An excellent first impression can be made through premium packaging, which also suggests an improved product.
- Durability
The durability factor stresses how long the product can last. A product's resistance and endurance are important factors that customers use to determine its perceived quality. Products that are made to last and withstand use and abuse are often thought to be of superior quality.
- Liability
Consumers take into account a product's safety and potential dangers. Products with a minimum chance of injury or safety issues are perceived to be of superior quality. For instance, to raise consumer perceptions of product quality, automakers extensively invest in safety features and crash tests. It's why people with a taste for luxury prefer Mercedes Benz, BMW, Lexus, and Audi over others like Kia or Nissan.
How can you improve your brand's perceived quality?
Every brand is capable of quickly changing consumers' perceptions of the quality of their products from red to green. Here are the strategies:
- Effective market
Remember that your target audience is not capable of knowing what you offer until you market it. Your marketing should be strategic and focused on the features of your product or offering (much like iPhone marketing campaigns). Spend time to highlight the advantages of your product without necessarily bringing down the reputation of other brands. Apple was able to buy a spot in the market for its iPhone even with brands like Blackberry and Nokia in the market at the time.
- Regular Quality Control
Make sure the quality requirements for your goods or services are continuously met or exceeded. Trust must be established through consistency.
- Successful branding
Branding is the first point of communication a company has with its target audience. It's you speaking to them and saying "Hey! Here's what I stand for or what I do". Branding comprises everything that makes you a company (your unique identity). It comprises your company's logo, name, products, etc. Make an investment in quality-driven branding like a qualified logo, attractive packaging, and a strong sense of brand identity.
- Apply customer-centered strategy
A customer-centered strategy emphasizes that you pay close attention to the tastes and wants of your customers. Make sure your goods and services are effective at satisfying these demands.
- Product Development
Maintain a competitive edge and show your dedication to quality by constantly innovating and improving your goods or services. You can even pivot where necessary. Successful companies like Netflix, Slack, and even Amazon leveraged pivoting when they had to.
- Focus on great customer service
Excellent customer service is required to improve your company's perceived quality. This involves making sure that you quickly respond to questions and effectively solve customers' problems. You can leverage AI tools to make this task faster and easier
- Warranty and Quality Guarantees
To reassure customers about the caliber and dependability of your goods or services, provide robust guarantees or warranties. Also, take time to list the components of your products if possible, especially if you're in food, drug, skin care, or other related industries. And do not forget to give directions for use where necessary to curb abuse or accidents.
- Reviews and testimonials from customers
Perceived quality is highly influenced by how trendy a product is and how many people refer to it. So request evaluations and testimonials from satisfied customers. Real customer testimonials that are favorable improve perceived quality.
- Premium Pricing Techniques
Price sometimes portrays quality. If it makes sense for your market, think about premium pricing to establish your brand as a premium option.
To sum it up
Perceived quality is motivated by individual experiences, expectations, and feelings. Brand loyalty and purchasing decisions are influenced by perceived quality. It has many advantages for startups, including building credibility, competitive advantage, customer attraction and retention, and investor appeal.
Performance, brand reputation, price, design, user reviews, advertising, packaging, durability, and safety are all factors that influence perceived quality. Businesses can use effective marketing, quality control, branding, customer-centric strategies, ongoing product development, exceptional customer service, warranties, reviews, and even premium pricing where necessary to improve perceived quality. Perceived quality is essential for long-term success in every industry.
Did you enjoy this article? Here's something else you may like: The Power of Brand Authenticity
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