Perceived Quality

Posted in Marketing and Strategy Terms, Total Reads: 9397

Definition: Perceived Quality

Before understanding the logic of perceived quality, let us understand what perception is. “Perception is a psychological behaviour through which a person identifies, organizes and evaluates the various stimuli into a meaningful and comprehensible layout.”

Perceived quality can be defined as the customer's opinion about the overall quality or image of the product or service or the brand itself with respect to its purpose of use as against its alternatives. It might not be linked to the actual product but is more skewed towards the brand image, customer experience with the brand and its other products, peer opinions, etc. thus perceived quality differs from objective quality, product-based quality and manufacturing quality.

Perceived quality is intangible. It cannot be measured on quantitative grounds, preferably because judgements about what is important to the customers varies widely across different personalities, needs and preferences. If it’s a product, the customers consider the following seven features for evaluation: performance, features, conformity with specifications, reliability, durability, serviceability, fit and finish.

Whereas if it’s a service, customer decision is based on the following five features: tangibles, reliability, competence, responsiveness and empathy. The basic concept of perceived quality takes into account both the extrinsic and intrinsic features of the product. Customers’ knowledge about the product or the brand and his past experiences with it are important decision variables.

If the customers’ expectations are just met, then he is satisfied. If they are not, the customer is unhappy. If the product/service/brand exceed the customers’ expectations, then he is delighted. This further drives his perception about the product/service/brand.


For example: - If we consider a product say, washing machine, then following are the seven dimensions on which the customer would think and judge.

1. Performance: how good the washing machine washes the clothes?

2. Features: Does it have an eco-mode of washing clothes?

3. Conformance with specifications: how frequently the defects happen?

4. Reliability: will its performance vary after 2-3 years of continuous use?

5. Durability: what is its average life span?

6. Serviceability: Is the service system efficient, competent, and convenient?

7. Fit and finish: is the product stylish and has a smart look?


Next, if we consider a service, like banking, then the following five dimensions would drive the customers’ perception about the bank:

1. Tangibles: Do the physical facilities, equipment, and appearance of personnel reflect quality standards?

2. Reliability: Will the accounting work performed would be trustworthy and accurate?

3. Competence: Does the bank have the right skilled personnel employed? Does the convey trust and confidence through the services offered?

4. Responsiveness: Is the sales staff willing to help customers and provide prompt and reliable services?

5. Empathy: Does the bank provide caring and individually focused attention to its customers’?


Hence, this concludes the definition of Perceived Quality along with its overview.


Browse the definition and meaning of more terms similar to Perceived Quality. The Management Dictionary covers over 7000 business concepts from 6 categories.

Search & Explore : Management Dictionary

Share this Page on:
Facebook ShareTweetShare on G+Share on Linkedin