Analysis on the effect of physical characteristic and price toward quality perception: implication for Jusco's retail store

This research attempt to analyze the role of cues in forming quality impression. Both price and the physical cues can have an effect on quality perception. Perception is one of the essential determination of customer behavior and it influence the opportunities open to retailers. The issues that researcher would like to highlight in this study is regard whether physical characteristic (intrinsic element) have a stronger effects than prices (extrinsic element) on consumer perceive quality. Researcher also would like to analyze the extend to which customer are able to discriminate among different level of quality for particular product line. Beside that, researcher would like to determine the effect of perceived quality toward the performance of Jusco's retail store. The data of this research are gathered from both primary and secondary data. Hundred respondents has been selected at random in order to get data from different group of people. Questionnaire are largely use in gathering data. Using questionnaire data are collected by doing face to face interview and also ask customer to fill up the questionnaire themselves. While the secondary data was simply collected from books, journals, Jusco's Annual report, Company's Prospectus and articles. The research finding described that the respondents responses toward the question directed to them showed that most of the consumer does not equate price with quality. It has been identified from the previous research that price have a stronger effect toward consumer perceived quality when physical characteristic are not available that is when the evaluation of intrinsic cues requires more effort and time also when consumer has no experience in using the product. However, a further research need to be carry on because consumer behavior keep changing over time. Base on the result of this study some recommendation has been proposed to retailer which hopefully can help them to improve their business performance in the future.