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Literature Review Of Branding

651 words - 3 pages

Literature review

Price and product quality
Price and product quality are vital variables in marketing. Marketers using characteristics and price of product as significant decision variables affects evaluation of product, potential consumers’ buying behavior and current customers (Chang and Wildt, 1994). Rao and Monroe (1989) point out that it has a significant and positive effect between price and product quality and brand name and product quality. Besides, consumers prefer use price to indicate quality for considerably costly products (Olson cited by Rao and Monroe, 1989). However, price has both positive and negative influence, ‘price had a positive effect on perceived quality, but a ...view middle of the document...

204).

Satisfaction
Satisfaction is very important for both customers and marketers. Churchill, JR. and Surprenant (1982, p.491) describe that ‘Satisfaction is a major outcome of marketing activity and serves to link processes culminating in purchase and consumption with postpurchase phenomena such as attitude change, repeat purchase, and brand loyalty ’. In addition, buyer’s sensation of satisfaction is a consequence of comparing the process between perceived consumption and expectation; besides, it shows that buyers are satisfied when buyers feeling the performance of product is match to their expectation ( Parasuraman, Zeithaml and Berry, 1988)

Promotion
Mela, Gupta and Lehmann (1997) suggest that abundant of consumers have changed into gradually more sensitive about the price and promotion of products; in addition, advertising decreases consumer’s sensation about the price and promotional activities enhance consumer’s sensation about the price and promotion.

References

Chang, T.Z. and Wildt, A.R. (1994) ‘Price, Product Information, and Purchase Intention: An Empirical Study’, Journal of the Academy of Marketing Science,...

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