Perceived quality in terms of products and services enables retailing companies to enjoy economies of scale since more customers would purchase homogenous product retailers that offer a high-quality product with competitive services at a much cheaper price than other retailers of homogenous products could offer. According to Moilanen and Rainisto (2009, p. 12), perceived quality could increase customers’ satisfaction. Since perceived quality is one factor that consumers consider when deciding to purchase a product, the ability of marketing managers to increase perceived quality increases the ability of the retailers to compete within the national retailing industry. As explained by McLoughlin and Aaker (2010, p.
179), “ brand association is anything that is directly or indirectly linked in the consumers’ memory to a brand” . It means that each time a consumer creates a positive perception with a product, the buyer also creates a strong association with the brand. Even before consumers establish the brand association, target consumers should be introduced to a brand. By continuously promoting a brand, marketing managers contribute to an increase in brand awareness (McLoughlin and Aaker 2010, p.
176). As soon as consumers could develop a strong brand association, consumers can become loyal to the brand. Since satisfied customers can promote a brand through word-of-mouth, retail companies could enjoy the benefit of long-term profits (McLoughlin and Aaker 2010, p. 103; Wiegandt, 2009, p. 98). A structural framework was designed to summarize how the primary research study will be conducted. Based on the assumption, the marketing mix (4P’ s) contributes to the increase in perceived quality in Starbucks coffee, brand association, brand awareness, and brand loyalty. In relation to the marketing mix, exogenous variables includes: the level of pricing, images of stores, product distribution, money spent on advertisements, and price promotion whereas endogenous variable(s) that contributes to higher brand equity includes: perceived quality, association with the brand, creation of brand awareness, and brand loyalty.
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