TY - JOUR
AU - Golder, Peter N.
AB - We examine the relationship between objective and perceived quality for 241 products in 46 product categories over a period of 12 years. On average, we find that the effect of a change in objective quality is not fully reflected in customer perceptions of quality until after about six years. In the first year after a quality change, only about 20 of the total effect over time is realized. These effects are significantly larger and quicker for a decrease in quality relative to an equivalent increase. Interestingly, we also find that brand reputation has a double advantage. High-reputation brands are rewarded three years quicker for an increase in quality and punished one year slower for a decrease in quality compared to low-reputation brands. These differences in response time are a meaningful measure of brand equity. Finally, we examine the differences in quality effects across several product- and category-specific variables and discuss the implications of our findings.
TI - How Does Objective Quality Affect Perceived Quality? Short-Term Effects, Long-Term Effects, and Asymmetries
JF - Marketing Science
DO - 10.1287/mksc.1050.0175
DA - 2006-05-07
UR - https://www.deepdyve.com/lp/informs/how-does-objective-quality-affect-perceived-quality-short-term-effects-RorkIZQ26h
SP - 230
EP - 247
VL - 25
IS - 3
DP - DeepDyve
ER -