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This study investigates two moderators of the effects of manufacturers' recovery efforts following a product defect on customers' perceptions of product quality: the severity of the product defect and whether the recovery efforts were covered under warranty or not.

A total of 478 USA customers who purchased a new car from a cooperating manufacturer participated in a survey. Customers reported the most important product defect (if any) the customers had experienced with the customers' vehicle during the past year. Three linear regressions (OLS) were used to test the proposed hypotheses.

Defect severity moderates the effects of recovery efforts on quality perceptions. The well-known recovery effect occurs only for product defects of minor severity. Experiencing a severe product defect damages the customers' perceptions of product quality even if the product defect is completely fixed. Double deviations (failed recovery of a product defect) do not damage quality perceptions for defects of minor severity. Finally, warranty coverage of repairs can attenuate the adverse effects of a failed recovery of severe defects on customers' quality perceptions. Additionally, only non-complainers who have experienced a severe product defect correspond to the prevailing conceptualization of an at-risk customer group.

Despite the pervasiveness of product defects, research on the effects of experiencing product defects on customers' product quality perceptions is scarce. Furthermore, the authors' findings reconcile inconsistent results and provide a more nuanced understanding of the well-known recovery and double-deviation effects. Finally, the role of warranty coverage in the recovery process as a buffer for customers' perceptions of product quality is novel.

This paper provides a comprehensive review of the literature regarding the effect of country of origin on consumer perceptions of products and services. Results reveal that consumer perceptions differ significantly on the basis of product/service and country of origin. The country of origin may be an important element in the perceptions consumers have of products and services especially where little other information is known. However, the question of how much influence the country of origin provides in product and service evaluations remains unanswered and a number of other major issues have yet to be resolved. Directions for future research are developed.

The paper aims to study market dynamics in the backdrop of information symmetry and quality perception. The position of high quality products (HQPs) in the market is a focus of this analysis. Also, an attempt is made to unfold the prevailing parametric relationships in the market of developed and developing nations.

Related literature is reviewed and investigation is attempted into market dynamics. System dynamics is used for preliminary modelling and analysis. Simulation runs are carried out to assess the impact of company reputation and advertising on market parameters.

Behaviours of market parameters are unraveled. From using correlation analysis and analytic hierarchy approach, the policy measures to improve the HQP position in the market are revealed.

The study of some aspects of market dynamics is attempted. Further, study and modelling are required to completely understand the market behaviour.

The model has a practical relevance to implement quality perception enhancement by deciding on the policy mix.

This is a start for systems analysis of the market, which may offer a long‐term foundation to market dynamics.

This paper aims to study how price and sales level information influence consumer product perceptions and choices in online settings. It, in particular, tests whether displaying sales level information increases consumer price sensitivity, which is a potential strategic risk to retailers.

Study 1 uses eBay data to investigate whether the interaction effects between price and sales level can be observed in an existing market. Study 2 involves online experiments across three product categories. Participants choose from product pairs that are shown with either the same or different prices and with no, the same or different sales levels.

Study 1 shows strong effects of a product’s displayed sales and price level on its daily sales but finds no interaction effect. Study 2 shows strong effects of price and sales levels on product choice but similarly finds no evidence that sales level information influences consumer price sensitivity, although it reveals an effect on quality perceptions. The results show how perceptions of quality, sacrifice and popularity mediate the effects of price and sales level information on product choice.

Study 1 has limited control over prices and sales levels. Study 2 involves only hypothetical choices.

These findings indicate that businesses can use sales level information to manage consumer product quality perceptions and choices without having to be concerned that this will make consumers more price-sensitive.

To the best of the authors’ knowledge, this paper is the first to investigate how sales level information affects consumer responses to price differences in online contexts.

Co-branding is popular with partnerships between well-known and new brands. In a laboratory study, this paper aims to examine the effects of a single ally and multiple allies on quality perception of a brand. The results suggest that the quality perception of the new brand depends on the co-branding strategy.

For dual-brand alliances, a single-factor design was used, with secondary brand quality level (high, medium and low) as the independent variable. Three advertisements were created by manipulating quality levels of the single partner. For multiple-brand alliances, a 2 × 3 between-subjects factorial design was used in the experiment. The two factors were diversification (homogeneous vs heterogeneous) and quality levels of the alliance (high-end, mixed and low-end).

The results suggest that the number of brand partners significantly affected the perceived quality of the primary brand. For both dual- and multi-brand alliances, the quality level of the secondary brand positively influenced the perceived quality of the primary brand. For multiple-brand alliances, even though the highest quality perceptions of the primary brand are in the heterogeneous conditions, the heterogeneity of partners (partners across different product categories) did not affect the quality perception of the primary brand.

One limitation of the current study is that it only addresses one type of brand alliance: co-promotion. The generalization of these findings to other forms of brand alliances (e.g. ingredient branding: Intel with IBM, Dell and HP) merits further investigation. Also, in this study, respondents processed the information in a relatively low-involvement condition (note that the target ad was presented along with filler ads). They were more likely to use brand names as heuristic cues to form their judgments. Because an alliance partner also assumes risks, future research should consider the effect of the alliances on the secondary brand.

Understanding brand alliances (especially multiple-brand alliances) is critical for new product managers and marketers. Introducing a new brand has higher risk and failure rates. Companies may lower these risks by co-branding with established brands. However, they should carefully consider the diversification and quality level of the partners. If brand managers position their product as “high quality (luxury)” or “low quality (budget)”, they should choose high- (or low-) quality partners from different product categories (heterogeneous high-end or low-end alliances) because diversification strengthens the primary brand. For a single-partner alliance, the secondary brand should be of high quality.

This paper extends the brand alliance literature beyond single-partner to multiple-partner alliances. With multiple partners, one can explore several critical aspects of an alliance, e.g. quality variance and product class diversity across the partners.

Assesses how branded ingredients affect consumer product quality perceptions, confidence in product quality perceptions, product evaluations, taste perceptions, purchase likelihoods, and reservation prices of host brands of varying quality. In two experiments, we find that branded ingredients consistently and positively affected moderate‐quality host brands, but only occasionally positively affected higher‐quality host brands. Suggests that managers of both moderate and higher‐quality host brands consider implementing branded ingredient strategies, albeit for different reasons. While moderate‐quality host brands can improve their competitive position by using branded ingredients, higher‐quality host brands generally do not. However, higher‐quality host brands may benefit most by securing the most desirable branded ingredients for their own use, thereby blocking moderate‐quality host brands from using a branded ingredient strategy to improve their competitive position.

The purpose of this study is to evaluate whether the perceptions of cleanliness and organization of the point of sale, hygiene and training of those who serve the public (service) and healthiness of the products, constitute a base for the perception of the quality of food sold in the street. Studies about development of street food trade have gained relevance in academic debate because of its social and economic significance. Usually, aspects related to sanitary issues are presented, and the factors that influence consumer perception regarding quality of food consumed are less explored. This was the focus of this work. The relationships among possible predecessors – attendance, cleanliness, organization and healthiness – were tested, all acting together, influencing the variable perception of product quality. Competitive models were tested because of theoretical divergences regarding the relationship between quality and healthiness, not yet totally clear in the literature.

A quantitative survey was carried out in the city of Diadema (SP, Brazil), getting 603 respondents, with data and theoretical models analyzed by structural equation modeling.

Results indicated that organization variable is not significant regarding perception of product quality, while attendance and healthiness directly affect this perception. On the other hand, cleanliness influences perceived healthiness and this, in turn, reinforces perception of product quality.

The focus of street food traders should be on clerk cleanliness and politeness (characteristics related to the service) that end up influencing the perception that the consumer develops regarding healthiness (characteristic related to product quality).

Usually research studies on this theme include only aspects related to sanitary and safety issues, and those which focus on consumer perception of food quality cover conventional outlets such as bars and restaurants. There are few ones performed as in this study that analyze street food consumer behavior regarding his/her perception of quality, cleanliness, care received, among others.

The purpose of this paper is to explore female fashion shoppers’ perception and response to the mall environment. Specific objectives include a conceptual model of female fashion shoppers’ experience in a mall environment incorporating fashion orientation, store personality, shopping mall perception, shopping value, and patronage intentions.

Empirical testing is done with a latent path structural equation model. Data collection was carried out in a firmly controlled mall intercept survey which produced 312 usable questionnaires.

Results show that shoppers’ fashion orientation hypothesized to be a personality trait is not an antecedent to the perception of the mall environment. Instead, fashion orientation moderates the perception of product and service quality, hedonic shoppers’ response, and patronage intentions. The perceived mall personality has a focussed impact on the perception of product and service quality. The mall’s sophistication image influences the perception of product quality. On the other hand, the mall’s enthusiasm image atmosphere affects the perception of service quality. Perceptions of product and service quality are correlated and trigger positive hedonic and utilitarian shopping benefits.

Because findings from this study cannot be generalized to other situations, the research should be replicated to a variety of mall formats and shopper segments. Furthermore, other fashion-orientation factors (fashion leadership, fashion interest, and anti-fashion attitude) should be considered. However, along with model complexities, increased sample sizes are also required. Future studies may also include male shoppers to investigate differences in fashion motivation and mall shopping experience.

It is concluded that the person-place congruency theory is confirmed and that the shoppers’ fashion orientation should be included in the set of segmentation variables. Shopping malls cannot be everything to everyone without risking diluting their image. Downtown urban malls have the opportunity to adopt a well-defined positioning in order to differentiate themselves. Large suburban malls should partition themselves to remove image ambiguities. Mall managers must primarily work on the “meaning” of the mall atmosphere rather “mood.” Fashion shoppers are task oriented. Mall managers should design malls to facilitate the shopping experience with highly functional designs, simple layout, and clear signage in support of wayfinding.

Although fashion consumers have been studied from diverse perspectives, there is limited research on the experience of fashion shoppers in a mall setting. This study partly fills this gap in the literature by investigating how female fashion shoppers respond to the shopping center environment and commit to mall patronage.

Prevailing information asymmetry in business processes alters the market dynamics. Quality uncertainty ensues from this phenomenon. Philosophy of information economics is implemented to correlate total quality management (TQM) practices in industry with quality perceived by customers. Quality perception, a newly coined term, is discussed at length, along with causal factors. This paper aims to provide a system dynamics framework for quality perception and to investigate the role of the changing level of market‐side enablers on quality perception.

System dynamics is used for modeling and analysis. To realize the impact of information asymmetry on quality perception, simulation runs are carried out for an Indian case.

Enablers, such as advertising, word‐of‐mouth, rebate, warranty and guarantee, mitigate the effect of information asymmetry on quality perception, and commensurately translate TQM to market value.

The study of some aspects of information asymmetry and quality perception is attempted. Further study is required to understand repercussions of information asymmetry on the complete supply chain processes.

The model has a practical relevance to implement quality perception enhancement by deciding upon the policy mix.

With quality perception defined and modeled, the paper attempts market orientation to quality paradigm.