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Problem

Bradley Gale, managing director of The Strategic Planning Institute, says: “People systematically knock out income statements and balance sheets, but they often don’t monitor the nonfinancial factors that ultimately drive their financial performance. These nonfinancial factors include ‘relative customer-perceived quality’: how customers view the marketer’s offering versus how they perceive competitive offerings.” Explain.

Step-by-step solution

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Step 1/2

Perceived quality is intangible. It is a feeling of consumers towards a particular brand. The consumers generally have a perception towards a particular product based on the product’s features, performance, reliability and durability.

A product must include benefits and services to satisfy and to provide more value to customers. The main aim of a business marketer is to provide superior market perceived quality products as compared to competitors. More stress has to be given to total quality management and to customer satisfaction. The products should be made keeping in mind the requirements and needs of consumers.

Step 2/2

The marketer must make his product offerings on the basis of the customers’ requirements. The perception of the customers towards the product impacts the purchase decision of the product. The customers should be provided with superior quality service that adds value to the product physical attributes. Providing value added services acts as a competitive strategy to the companies.