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Does a higher perceived product quality need less advertisement to be sold?

Title: Does a higher perceived product quality need less advertisement to be sold?

Scientific Study , 2009 , 20 Pages

Autor:in: Lisa Hamann (Author)

Business economics - Trade and Distribution
Excerpt & Details   Look inside the ebook
Summary Excerpt Details


In this scientific paper, it is about to prove that higher perceived product quality needs
less advertisement to be sold.
The reader will find theoretical sources as well as an own empirical finding. In this the
effect of "Stiftung Warentest" on the customers purchase decision will be proved. At
the end, it comes out that customer's decision for or against a product is also depends on
seals of quality even if they never heard about this product before.
That means if a product reaches good test results (e.g. in a product test about sun lotions
by Stiftung Warentest), sales should increase while displaying that seal of quality on the
package true to the motto: good products sell themselves.

Excerpt


Table of Contents

1. Introduction

2. Quality

2.1 Definition

2.2 Importance

2.3 Cost of producing quality

3. Seal of quality

3.1 Origin

3.2 Function

3.3 “Stiftung Warentest”

3.3.1 History

3.3.2 Facts, Figures and Financing

3.3.3 Example “Sun lotions”

3.4 ICRT (International Consumer Research and Testing Ltd.)

4. Brands, Quality & Advertisement

5. Own empirical finding – Experiment

5.1. Presentation of products

5.2 Data interpretation

6. Conclusion

7. Bibliographie

Objectives and Research Themes

The primary objective of this study is to investigate the hypothesis that higher perceived product quality reduces the necessity for extensive advertising. The research examines how independent quality seals influence consumer purchasing behavior and whether such endorsements can serve as an effective substitute for traditional promotional efforts.

  • The theoretical conceptualization of product quality and its market significance.
  • The operational role and impact of the German consumer protection organization "Stiftung Warentest".
  • The relationship between brand perception, advertising, and independent quality indicators.
  • An empirical analysis of how companies perceive and utilize "Stiftung Warentest" test results in their own marketing strategies.

Excerpt from the Book

3.3.3 Example “Sun lotions”

Mentioned on their website, Stiftung Warentest tested 21 sun lotions on 25th of June 2009. They checked body milk with sun blocker, body lotion with sun blocker, sun crème and sun spray. All of those products have the SPF (sun protection factor) 30 and are available in different price ranges.

The result is surprising. The expensive branded products made by Lancôme and Shiseido were not waterproof and the general protective effect is clearly reduced. Other brands like L'Oreal and Vichy are insufficient. The winners in this test were private brands of Aldi “Ombra” and Rossmann “Sun Ozon”. These low-costs products reached the best results and were displayed with the quality valuation “good” (1.8).

These examinations are very helpful for the public. If a consumer wants to buy a certain product, he can ease the decision while orientate oneself on seals of quality. Consumers could safe lots of money on one hand, on the other they really can trust the quality valuation (due to facts mentioned above).

Summary of Chapters

1. Introduction: Outlines the research problem regarding consumer choice and introduces the hypothesis that product quality seals may diminish the need for advertising.

2. Quality: Defines the concept of quality from various perspectives and discusses its importance and production costs in a competitive market.

3. Seal of quality: Explores the origins and functions of quality marks, with a deep dive into the historical and practical operations of "Stiftung Warentest" and the ICRT.

4. Brands, Quality & Advertisement: Analyzes the interplay between high-class brand positioning and the role of advertising in influencing customer perception.

5. Own empirical finding – Experiment: Presents original research involving an inquiry sent to companies to assess their reactions to being tested by "Stiftung Warentest".

6. Conclusion: Summarizes the study's findings, noting that while quality seals build consumer trust, the impact on sales and marketing strategy remains complex and context-dependent.

7. Bibliographie: Lists the academic and online resources used throughout the scientific paper.

Keywords

Quality, Stiftung Warentest, Consumer Protection, Product Quality, Quality Seal, Advertising, Market Behavior, Brand Strategy, Empirical Study, Test Results, Consumer Confidence, Product Testing, ICRT, Marketing Communication, Purchase Decision.

Frequently Asked Questions

What is the core focus of this research paper?

The paper examines the correlation between high perceived product quality and the necessity of advertising, specifically evaluating the role of independent quality seals in consumer decision-making.

What are the primary thematic areas covered?

Key areas include the definition of product quality, the influence of brand advertising, and the institutional role of consumer protection organizations like Stiftung Warentest.

What is the main hypothesis of the study?

The central hypothesis posits that the higher a product's quality is perceived by a customer, the less advertising is required to facilitate its sale.

Which scientific methodology is employed?

The study combines a review of theoretical literature with an empirical experiment, consisting of a structured inquiry sent to 20 companies to assess their responses to external quality testing.

What topics are discussed in the main body?

The main body covers the definitions of quality, the function and origin of quality seals, detailed analysis of Stiftung Warentest, and an empirical assessment of how market players react to test results.

Which keywords best characterize this work?

Keywords include product quality, Stiftung Warentest, consumer protection, advertising effectiveness, and brand strategy.

Why did the author choose to send an inquiry to companies?

The author sought to gather primary data on how companies experience and react to being featured in comparative product tests, as this information was not readily available in existing literature.

How does the author evaluate the "Sun lotions" example?

The author uses this case study to demonstrate that expensive branded products do not always guarantee superior quality and that consumers can often find highly-rated, cost-effective alternatives through independent testing.

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Details

Title
Does a higher perceived product quality need less advertisement to be sold?
Author
Lisa Hamann (Author)
Publication Year
2009
Pages
20
Catalog Number
V144980
ISBN (eBook)
9783640730766
ISBN (Book)
9783640731046
Language
English
Tags
Does
Product Safety
GRIN Publishing GmbH
Quote paper
Lisa Hamann (Author), 2009, Does a higher perceived product quality need less advertisement to be sold?, Munich, GRIN Verlag, https://www.grin.com/document/144980
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