Dissertation 2015

“An exploratory study into consumer perception of product quality: Case
study of the Irish D.I.Y industry.”
David Nolan
Submitted in partial fulfilment of requirements for the
Bachelor of Business (Honours) in Supply Chain Management
Institute of Technology, Carlow

Index
Page No.
Chapter 1: Introduction 1
Chapter 2: Industry Review 4
2.1 – Market Definition 4
2.2 – Company Review 5
2.3 – PESTEL Analysis 7
2.3.1 – Political 7
2.3.2 – Economic 7
2.3.3 – Social 8
2.3.4 – Technological 8
2.3.5 – Environmental 9
2.3.6 – Legal 9
2.3.7 – Key Drivers 9
2.4 – Porters Five Forces 10
2.4.1 – Threat of Entry 10
2.4.2 – Substitutes 11
2.4.3 – Bargaining power of Buyers 11
2.4.4 – Bargaining power of Suppliers 11
2.4.5 – Rivalry 12
2.5 – Conclusion 12
Chapter 3: Literature Review 13
3.1 – Introduction to literature review 13
3.2 – Defining product quality 14
3.3 – Dimensions of quality 17
3.4 – Perceived quality 20
3.5 – Perceptions and expectations 22

Page No.
Chapter 4: Methodology 26
4.1 – Research objectives 26
4.2 – Rationale for approach taken 27
4.3 – Instruments used 29
4.4 – Rationale for data collection methods 32
4.5 – Subject sample and sources of data 34
4.5.1 – Interview 34
4.5.2 – Target population 34
4.5.3 – Sampling frame 34
4.5.4 – Sampling type 34
4.5.5 – Sampling method 35
4.5.6 – Sample size 35
4.6 – Limitations of the study 36
4.6.1 – Reflection 37
4.7 – Programs used to analyse data 37
Chapter 5: Research Findings 38
5.1 – Introduction to research findings 38
5.2 – Interview findings 38
5.3 – Findings from surveys 41
Chapter 6: Analysis
6.1 – Introduction to analysis 60
6.2 – Objective number one 60
6.3 – Objective number two 62
6.4 – Objective number three 64
6.5 – Objective number four 67

Chapter 7: Conclusions and Recommendations
7.1 – Introduction 69
7.2 – Research objective one 69
7.2.1 – Conclusion for objective one 69
7.3 – Research objective two 70
7.3.1 – Conclusion for objective two 70
7.4 – Research objective three 71
7.4.1 – Conclusion for objective three 71
7.5 – Research objective four 72
7.5.1 – Conclusion for objective four 72
7.6 – Recommendation one 74
7.7 – Recommendation two 75
7.8 – Recommendation three 76
7.9 – Recommendation four 77
Bibliography 78
Appendix 1: Research proposal 81
Appendix 2: Confirmation letter 89
Appendix 3: Interview questions 90
Appendix 4: Questionnaire 92

1
Chapter One
Introduction
This study is an exploratory investigation in consumer perception of product
quality within the Irish D.I.Y market. The firm involved in the study is “ARC
building products”, based in Gorey Co. Wexford.
1.1 Rationale
The purpose of this dissertation is to discover how consumer’s perceptions of
product quality are formed, how they can be influenced and how quality
perceptions influence buying behaviour.
1.2 Research questions
In order for the author to proceed in the study it was necessary to identify
certain research objectives, which assisted in framing the scope of the study.
The overall study will be focussed within the parameters of the research
objectives stated below:
 How are perceptions of quality formed?
 Are intrinsic or extrinsic cues more important in
signalling quality to the consumer?
 Which key intrinsic and extrinsic product attributes do
consumers use to signal quality?
 What intrinsic and extrinsic attributes does the firm
involved in the study focus on?

2
1.3 Structure of dissertation
The dissertation will consist of seven chapters and each will aid in developing
a framework for identifying and answering the main research objectives.
1.3.1 Chapter one
Chapter one is simply an overview of the study where the author outlines the
main objectives of the study and what is involved in each of the subsequent
chapters.
1.3.2 Industry review
In chapter two the author gives a brief history of the firm involved in the
study and carries out a PESTLE and five forces analysis of the D.I.Y industry.
1.3.3 Literature review
This is the in-depth secondary research that the author found relevant in
relation to perception of product quality. The author used academic journals,
books, articles and internet databases that related to the study and identified
key themes and existing theories.
1.3.4 Methodology
In this chapter the author identifies the research objectives, goals and
questions. The author outlines the research design for the study and how
mixed method research was used under an interpretive epistemology. The
author details the data collection methods and outlines the rationale for the
methods.

3
1.3.5 Research findings
In this chapter the author reports on the results of the in-depth interview
with the managing director of ARC and the results of the surveys are
displayed in graph format. Through the primary research the author identifies
the key product attributes that influence consumer’s perceptions of quality.
1.3.6 Analysis
This is the chapter where the author links the findings from the primary
research to the key themes identified in the literature review. The research
findings are analysed within the framework of the research objectives. The
author found a strong correlation exists between the literature and the
primary research findings.
1.3.7 Conclusions and Recommendations
In this final chapter the author comes to a conclusion based on the research
objectives and makes four strong recommendations. The author concludes
that consumer perceptions are formed through the interplay of intrinsic and
extrinsic cues. The author recommends that ARC focus on the key extrinsic
cues that influence perceptions. The author also makes strategic
recommendations on how to increase brand awareness and permeate
existing markets.

4
Chapter 2
Industry Review
2.1. Market Definition.
The Irish D.I.Y retail market provides a range of products for the
improvement, modernisation, remodelling or repair of a residence.
Competition is concentrated locally within towns and cities throughout
Ireland and has three distinct buying segments:
 The Grafton Group PLC, comprising a portfolio of Woodies, Heaton’s
and Chadwick’s, with a 2013 revenue of €352.9 million from the Irish
D.I.Y retail and the Irish merchanting segments combined, (Grafton,
2013).
 D.I.Y Superstores: Dairygold Co-op, Aurivo, Homebase, B+Q and
Country Life trading as Glanbia.
 Six primary buying groups representing their members:
Amalgamated Hardware - Trading as “Topline” (150)
National Hardware – Trading as “Arro” (100)
Associated Hardware – Trading as “Homevalue” (52)
Mc Mahon’s (20)
Allied Merchants (20) and Dublin Providers (15), who increase the
buying power of their members by utilising a centralised purchasing
structure.

5
The Irish Hardware Association have no figures for the overall annual
value of the Irish D.I.Y market.
Source: Copeland,J., (2015).
2.2 Company Review.
“ARC Building Products” is an Irish company involved in the development,
manufacturing and distribution of D.I.Y products in the Irish market, based in
Gorey Co. Wexford, and has been in operation since 2009. They supply
products to approximately 535 D.I.Y retail outlets nationwide. ARC is a small
company with 15 employees and compete in the sealants and adhesives
segment which is estimated by the managing director to have an overall
market value of €40 million per annum, they are currently the second largest
supplier by volume into this segment.
Grafton Group
108
Superstores
109Buying Groups
355
Market Size=572 Stores
Grafton Group Superstores Buying Groups

6
Product research and development is all centralised in Gorey and they
currently manufacture 60% of their products in house with the rest of their
product portfolio being imported. ARC hold a 15% market share and have
four main competitors as illustrated below:
Source: Martin Nolan,ManagingDirector, Arc BuildingProducts,2015
Bostik
55%
ARC
15%
Everbuild
12%
Larsens
10%
Dycon
8%
Market Share
Bostik ARC Everbuild Larsens Dycon

7
2.3 PESTEL Analysis.
To carry out a macro analysis of the industry the PESTEL model will be used,
which examines political factors, economic factors, social factors,
technological factors, environmental factors and legal factors.
2.3.1 Political
Irelands exit from the EU-IMF bailout program has boosted the spirits of the
population and serves to increase consumer confidence. Tensions within the
ruling coalition and between opposition parties will test the governments’
stability and could hinder effective policy making, (Marketline, 2013)
In 2013 government increased revenue to €60,837 from €56,653 million in
2009, which was driven by increased tax and social contribution revenues,
GDP is currently €174,791 million (CSO, 2014).
In 2013 the government launched a home renovation initiative which
provides home owners with a grant or tax relief in relation to carrying out
home maintenance.
2.3.2 Economic
Demand in the D.I.Y market is affected by weak growth in disposable income
with households continuing to repay debts, (Marketline, 2013)
Consumer confidence is increasing following a deep recession, however
consumers remain relatively cautious about their personal finances. With the
recent recession came negative equity which leads to householders seeking
to improve their homes rather than move, (Marketline, 2013).

8
According to CSO figures there are 1,658,243 households in Ireland, with a
population of 4,609,600. There are 3,007,400 people in the 18-64 age
bracket, which is the industries target market. Average weekly earnings range
from a high of €1,002 to a low of €316, (CSO, 2014).
2.3.3 Social
With current pressures on household expenditure being high the tendency
towards D.I.Y repairs and maintenance increases, where previously a
tradesperson would be hired to carry out such tasks. With disposable income
being reduced due to economic factors there is an emerging social trend for
homeowners to research and develop the skills needed to carry out small
D.I.Y jobs themselves.
2.3.4 Technological
According to the CSO, 8 out of 10 households in Ireland have internet access
(CSO, 2014). The information and advice needed on how to carry out D.I.Y
projects is therefore readily available and easy to access, increasing
consumer confidence in taking on projects.
Consumers are able to compare product prices and performance reviews
from peers much easier and incumbents in the industry are aiming to capture
this trend by improving the appearance and accessibility of their websites.

9
2.3.5 Environmental
With awareness of environmental issues being high in Ireland the industry
needs to adapt to this as currently there is very little emphasis placed on the
environmental impact of products.
2.3.6 Legal
European regulations impact on this industry through the CE marking system
which regulates all products available for sale within the industry. Each
product line must be independently tested at a cost of €2,500 per line,
increasing the cost base significantly. There are strict health and safety
regulations laid down by the department of agriculture in relation to the
handling and manufacturing of biocides and chemicals that are used in D.I.Y
products.
2.3.7 Key Drivers
The key drivers for the D.I.Y industry are Economic and Technological factors.
As the economic climate improves consumers will see an upturn in their
disposable income and look to improve or make repairs to their homes. Any
downturn in the national economy would further weaken consumer spending
power and greatly affect the industry.

10
With the ease of access to information through technology consumers have a
wide range of information about the performance and quality of D.I.Y
products available to them. Incumbents in the industry must have a presence
online in order to satisfy consumer’s needs for D.I.Y advice, product
specifications and assurance of quality.
2.4 Porters Five Forces
To carry out a micro analysis of the industry the Five Forces model will be
used to determine the relative attractiveness of the industry.
2.4.1 Threat of Entry
Large incumbents in the industry utilize their scale and buying power to
source goods at more competitive prices than smaller players. Existing
knowledge within the industry from a product development perspective
would act as a barrier to entry.
With the raw materials needed for production being readily available and
distribution networks easy to access this would not serve to deter new
entrants. Margins in the industry remain tight and production costs are
increasing due to CE marking regulations making retaliation on pricing from
incumbents difficult. There is low levels of product differentiation within the
industry and the threat of entry is seen as moderate.

11
2.4.2 Substitutes
The substitute for the industry is known as “Do it for me” or DIFM, where
tradespeople are hired to carry out small maintenance jobs. This benefit of
“DIFM” is the quality of work will be superior, it will however be more
expensive. Substitution will vary depending on economic drivers and is
currently seen as a low threat.
2.4.3 Bargaining power of Buyers
Direct buyers in the industry are the retail outlets which are concentrated
through buying groups and have high power. The final retail consumers are
highly fragmented with a lack of financial strength, they do however have
very low switching costs and are numerous which increases their overall
power. Buyer power is assessed as being high due to low switching costs and
buyer concentration.
2.4.4 Bargaining power of Suppliers
Suppliers are not concentrated and are vast in number with low switching
costs for manufacturers between suppliers. Suppliers tend not to integrate
forwards and manufacturers can integrate backwards into their supply chain
to control costs. Supplier power is assessed as low.

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2.4.5 Rivalry
The industry growth rate is slow and highly price sensitive with the industry
life cycle seen to be mature. There are relatively high fixed costs in relation to
the capital equipment required for large scale manufacturing. Exit barriers
would be high as the equipment used is industry specific and difficult to sell
to competitors who are already overproducing. Low product differentiation,
high exit barriers and slow growth in the industry lead to rivalry being
assessed as high.
2.5 Conclusion
The industry is assessed as only moderately attractive due to high rivalry,
buyer’s high power and low switching costs. Product differentiation through
strong branding and clever marketing is how firms in this industry will
increase their profit making ability.
With the key macro environmental drivers being economic and technological,
ARC need to capture emerging market trends by becoming more customer
focused and utilise technology to drive product differentiation and create
brand awareness that is currently lacking. The aim should be to negate buyer
power through strong product differentiation and using social media to
communicate effectively with consumers, provide product information and
offer advice on D.I.Y projects. To create a loyal customer base ARC should
break the industry norm and develop a programme for in store product
demonstrations and product sampling, giving them a point of difference from
competitors.

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Chapter Three
Literature Review
3.1 Introduction
The following literature review represents the existing literature that is highly
relevant to the research study. In this chapter the author will examine
existing literature pertaining to perception of quality.
The author will review how quality is defined and how key authors in the area
have developed theories and models to use the dimensions of quality as a
strategic weapon.
The author will then review literature discussing the measurement of the
dimensions of quality and how the relationship between quality, price and
value are measured and evaluated.
Finally the author will review existing theories on the intrinsic and extrinsic
characteristics of a product that influence customer’s perceptions.

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3.2 Defining product quality
Juran (1951) defined quality in his “Quality control handbook” as “fitness for
use” where according to Garvin (1984) quality is in the eye of the beholder.
Juran (1951) identifies that quality can be understood in terms of avoidable
and unavoidable costs throughout the production process. He advocated
investment in quality improvement to reduce these costs.
Feigenbaum’s (1961) “Total quality control” book built on Juran’s (1951)
ideas by introducing the concept of a total systemapproach to quality and
outlines his quality principles in forty steps. Feigenbaum (1961) argues that
quality developments should be integrated throughout the organisation with
management and employees focussed and committed to quality
improvements. Feigenbaum’s (1961) philosophy of integration and
interdepartmental cooperation was adapted by the Japanese and termed
“company-wide quality control”.
Crosby (1979) in his book “Quality is free” takes a similar view to Juran (1951)
and focusses on the costs of quality and defines quality as “conformance to
requirements” where product quality is synonymous with meeting
specifications.
Tuchman (1980) focuses on the enduring characteristics of a high quality
product regardless of changing consumer tastes by describing quality as
“innate excellence”.

15
Deming (1986) draws on his years of experience working with Japanese
companies to write his book “Out of the Crisis” in 1986, which focusses on a
concept of statistical analysis and worker cooperation to achieve product
quality and reliability. Despite this statistical approach, Deming (1986) argues
that quality is a relative term that can only truly be defined by the customer.
Deming (1986) is cautious when defining what quality actually means as it
involves “translating future needs of the user into measurable
characteristics” (Deming, W.E., 1986).
Garvin (1984) argues that the traditional views of quality held by Juran
(1951), Feigenbaum (1961), Crosby (1979) and Tuchman (1980) are
restrictive, overly reliant on statistics and internally focussed. He synthesises
these traditional views and proposes a careful separation of the elements of
product quality to take into account the customer’s perspective and
developed a framework based on “eight dimensions of product quality”
(Garvin, D.A., 1984) as illustrated below:

16
The shift in focus onto the customer is emphasised by Tribus (1990) who
states that quality is “what makes it possible for a customer to have a love
affair with your product”.
The author has identified that the importance of customer’s perceptions of
quality is a common theme evolving throughout the literature. The “eight
dimensions of product quality” proposed by Garvin (1984) highlight the
importance of perceived quality and literature encompassing this concept
will now be reviewed.

17
3.3 Dimensions of quality
Garvin (1984) devised the concept of competing on the “eight dimensions of
quality” in response to customer surveys that found a lack of consumer
confidence in the ability of U.S industries to deliver reliable quality products.
It was the foundation of an aggressive strategic plan for industries to
implement in order to “gain and hold markets, with high quality as a
competitive linchpin” (Garvin, D.A., 1984).
The aim of the concept was for U.S industries to focus on quality as a
strategic weapon rather than relying on high production volumes and low
costs. Garvin (1984) moves away from the traditional statistical and cost
controlling views of quality and states that “high quality means pleasing
customers, not just protecting them from annoyances”. This view further
highlights the importance of customer’s perceptions when assessing overall
product quality. Garvin (1984) argues that the customers total costs
throughout the products life cycle, including maintenance and servicing,
influence whether the consumer views the product to be of high quality.
The “eight dimensions of quality” were developed as a framework for
organisations to strategically analysis their product offering. Garvin argues
that the interplay between the dimensions presents managers with the
challenge of selecting which dimensions to compete in.

18
It is not necessary to compete in all eight as some are mutually reinforcing
and others are not. Garvin (1984) recommends that in order to be a quality
leader in the market it is important to find a niche in which to excel and
“select a small number of dimensions on which to compete” (Garvin, D.A.,
1984).
Bergman (1994) agrees with Garvin (1984) in his concept that product quality
has many dimensions but introduces three new dimensions for
consideration. These combined eleven dimensions of quality include a
customer perspective and a products characteristics:
1. Performance (Garvin & Bergman) 2. Reliability (Garvin & Bergman)
3. Durability (Garvin & Bergman) 4. Aesthetics (Garvin & Bergman)
5. Serviceability (Garvin & Bergman) 6. Features (Garvin)
7. Conformance (Garvin) 8. Perceived Quality (Garvin)
9. Safety (Bergman) 10. Faultless (Bergman)
11. Environmental Kindness (Bergman)
Within the eight dimensions proposed by Garvin (1984) there are four
intrinsic measurable dimensions and four extrinsic and subjective dimensions
(Adcock, D., 2000). According to Adcock (2000) the intrinsic dimensions are
Performance, Reliability, Conformance and Durability and the extrinsic
dimensions are Serviceability, Features, Aesthetics and Perceived Quality.

19
Garvin’s Eight Dimensions:
Performance (Intrinsic) - refers to a products primary operating
characteristics.
Reliability (Intrinsic) - reflects the probability of a product failing
within a specified time period.
Conformance (Intrinsic) - implies how well a products design and
functions meet with established standards, drawing on the traditional
approach of Juran (1951)
Durability (Intrinsic) - refers to the measure of a products life before it
deteriorates. This dimension is closely linked to reliability.
Serviceability (Extrinsic) – this implies the speed, courtesy,
competence and ease of repair of the product and refers to an after
sales service provided.
Features (Extrinsic) – these characteristics of a product supplement
their basic functioning and enable customisation and flexibility of
choice.
Aesthetics (Extrinsic) – is a reflection of individual preference and
refers to how a product looks, feels, sounds tastes or smells.
Perceived quality (Extrinsic) – is based upon inferences about quality
rather than the reality itself and various tangible and intangible
aspects of the product are judged. Reputation plays a huge part in this
dimension.

20
3.4 Perceived Quality
Customer’s perceived quality of a product is extrinsic and highly subjective
and according to Davis et al (2003) is directly related to the reputation of the
firm that manufactures the product.
Aaker (1991) and Zeithaml (1998) argue that perceived quality is not the
actual quality of the brands or products that is important, rather it is the
consumer’s judgement and expectation about the overall excellence or
superiority delivered by an entity that is important.
Zeithaml (1988) adapts a model first introduced by Dodds and Monroe (1985)
to investigate the relationships between price, perceived value and perceived
quality. The concept of perceived quality is pivotal in this model and is
highlighted as being a different concept to objective or actual quality.
Zeithaml (1988) is in agreement with several researchers (Dodds and
Monroe, 1985; Garvin, 1983; Holbrock, 1985) who have all emphasized the
difference between actual quality and perceived quality. The perspective on
quality taken by Zeithaml (1988) is similar to the user based approach taken
by Garvin (1983).
The intrinsic attributes that feed into the concept of perceived quality in the
model are described by Zeithaml (1988) as being “the physical composition of
the product” that are inherent and unchangeable.

21
The author is concerned with the extrinsic cues in the model that are
influencing perception of quality. Zeithaml (1988) proposes these cues as
being perceived value, price, brand name, level of advertising, reputation and
aesthetics.
Zeithaml (1988) investigates the interplay between extrinsic and intrinsic
cues at the point of purchase and across the products natural life cycle,
similar to the model proposed by Crosby (2003).
The purpose of the model, illustrated below, is to view quality through the
eyes of the consumer, develop an understanding into which cues are the
most important in a market and how consumers form impressions and
expectations of product quality (Zeithaml, V.A., 1988)
“The Perceived Quality Component”
Source: Zeithaml,V.A.,(1988).

22
The intrinsic and extrinsic cues that are available to a customer at the time of
purchase, as highlighted by Garvin (1984) and Zeithaml (1998) determine the
motivation for purchase and influence their expectations. Perceived quality
has a direct impact on customer purchase decision and brand loyalty (Aaker,
1991; Armstrong and Kotler, 2003).
Adcock (2000) argues that although perceived quality is a qualitative measure
“relying on personal opinions” (Adcock, D., 2000) relating to customer
specifications, these perceptions can be measured, influenced and satisfied.
According to Adcock (2000) satisfaction occurs when expectations are either
met or exceeded, the critical question is whether a customer’s perception of
what was received actually met his or her expectations (Adcock, D., 2000).
3.5 Perceptions and Expectations
The author has identified the emerging strategic importance of quality within
the existing literature and how customer’s expectations and satisfaction are
linked and influenced by their perceptions. The customer has now become
the ultimate judge of product quality and according to Adcock (2000) the
“evaluation of both expectations and what was received is personal to every
individual” (Adcock, D., 2000).
There is very rarely a company that provides a product without any service
involved and “the ability to deliver what you promise” (Zeithaml, 1990)
becomes a measure and dimension of overall quality.

23
Zeithaml et al (1990) investigated the delivery of quality service and
developed the “SERVQUAL” model to measure the five attributes of quality
service – reliability, empathy, assurance, responsiveness and tangibles. This
model focusses on the measurement of service quality in isolation and
received support from Carman (1990) and Fick and Ritchie (1991). Crosby and
LeMay (1998) argued that for the model to be relevant and accurate,
elements of the products characteristics should be included.
Crosby et al (2003) developed an amalgamated model to meet customer’s
expectations by including the elements of service quality from the
“SERVQUAL” model proposed by Zeithaml et al (1990) and the dimensions of
product quality proposed by Garvin (1984). Crosby et al (2003) propose that
measurement of the dimensions must be done over time which is similar to
taking the products life cycle into account as proposed by Garvin (1984).
The author feels that this concept proposed by Crosby et al (2003) epitomizes
the inclusion of the extrinsic dimensions of quality and the products intrinsic
characteristics. By using the model an organisation can maintain control over
certain dimensions through after sales service making it “possible to manage
the customer’s perceptions of quality and satisfaction” (Crosby, L.B et al,
2003).

24
Source: Crosby,L.B, DeVito,R.andPearson,J.M. (2003).
CUSTOMERS PERCEPTION OF QUALITY DIMENSIONS OVER TIME
Quality Dimensions Information Available to
Customer at Transaction
Point
Perceived value of Quality
Dimension over the Life of
Transaction Cycle
1. Performance Availablefrom providerand
external sources
Becoming less important
2. Features Availablefrom providerand
observation
 Key features stable
 Secondary features
becoming less
important
3. Conformance Availableon inspection Stable
4. Serviceability Availablefrom providerand
external sources
Increasing over useful life of
product
5. Aesthetics Availableuponobservation Decreasing over usefullifeof
product
6. Perceived Quality Availablefrom externalsources Increasing or decreasing basedon
experiences
7. Reliability Availablefrom providerand
external sources
Increasing or decreasing basedon
experiences
8. Durability Availablefrom providerand
external sources
Increasing or decreasing basedon
experiences
9. Tangibles Availablethrough observation and
inspection
Gradually decreasing
10. Responsiveness Availablefrom providerand
customers ofprovider
product
11. Assurance Availablefrom externalsources
and customers ofprovider
 Criticalbefore
transaction
 Decreasing after
transaction
12. Empathy Availableuponobservationand
from customers ofprovider
product

25
3.6 Conclusion
Throughout the literature the author has identified similar themes emerging
regarding the importance of the consumer’s judgement when evaluating
product quality. The author has reviewed literature encompassing several
models by key authors in the area of quality that were developed to
emphasis its strategic importance.
The author has observed that existing literature has struggled to define and
measure the intricate concept of perceived quality and its importance at the
point of purchase has been emphasised by numerous key authors.
The evolution of quality from a statistical, manufacturing basis to a consumer
based view has been tracked throughout the literature.
The separation of intrinsic measurable quality from subjective extrinsic
quality has been the focus of many key authors throughout the literature.
The literature surrounding perceived quality has been critically reviewed and
the concepts for measuring and managing consumer’s perception of quality
have formed the primary research questions for the author:
1. How are perceptions of quality formed?
2. Are intrinsic or extrinsic cues more important in signalling quality
to the consumer?
3. Which key intrinsic and extrinsic product attributes do consumers
use to signal quality?
4. What intrinsic and extrinsic attributes does the firm focus on?

26
Chapter Four
Methodology
4.1 Research objectives/goals/questions.
The author identified in the literature reviewed that consumer’s perception
of quality and motivation for purchase is influenced by numerous intrinsic
and extrinsic factors and that quality has various connotations for different
consumers.
The objective of the research is to investigate how perceptions of product
quality are formed and how they influence consumer buying behaviour
across the Irish D.I.Y market.
The research also investigates whether “ARC” understands what indicators of
product quality have the most influence on consumer’s perceptions and by
extension identifies if “ARC” are focussing on the right dimensions of quality.
The primary questions identified by the author are:
How are consumers perceptions of quality formed?
Are intrinsic or extrinsic cues more important in signalling quality to the
consumer?
Which key intrinsic and extrinsic product attributes do consumers use to
signal quality?
What intrinsic and extrinsic product attributes does the firm focus on?

27
4.2 Rationale for approach taken.
The research design established by the author for the study was systematic
and provided the framework for the collection and analysis of the data. The
design represented a structure that guided the execution of the research
methods for the author.
Research Design.
Interpretivism philosophy → Inductive approach → Case study strategy →
Mixed methods → Cross–sectional time horizon → Data collection and
analysis.
The theoretical framework for the research is based on secondary research
carried out by the author, where existing theories relating to perceived
quality were investigated. The author researched several models that have
been developed by key authors to measure the influence of intrinsic and
extrinsic cues on consumer’s perception of product quality.
The research is concerned with consumer’s perception of quality and the
premise for the primary research was founded on the model developed by
Zeithaml (1988). The literature discusses how the model is used to develop
an understanding of the intrinsic and extrinsic cues that customers use to
form impressions and expectations of the quality of a product.

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The author was looking to obtain phenomenological insight into consumer
behaviour and interpretivism was the most appropriate epistemology to
“understand how social reality is created” (Morgan and Smirich, 1980).
In the interpretive study mixed methods were used and a mixed model
approach was taken as the author was looking for a mix of detailed, insightful
qualitative data from the firm involved and quantitative data from consumers
in the market.
The author used an in-depth interview, to gather qualitative data with an
“emphasis on the quality and the depth of the data collected” (Collis and
Hussey, 2009).
Quantitative data was then collected through a consumer survey to enable
triangulation. Drawing on the mixed method approach the author used a case
study approach with a cross-sectional time horizon.
The research carried out by the author is inductive with the generation of
theory resulting from the correlation of primary and secondary research and
is exploratory in nature, looking for trends, patterns, insights and hypothesis.
The rationale for a mixed method approach is that the author was looking to
compare and contrast beliefs held by the organisation, with the reality of
customer’s behaviour and perceptions.

29
4.3 Instruments used for primary and secondary data.
The author reviewed a wide and diverse range of literature from key authors,
encompassing the area of perceived quality and the dimensions of quality to
collect secondary data.
The literature reviewed spanned sixty years of research in the area of quality.
The evolution of the definition and use of quality as a strategic weapon was a
common theme that permeated the literature. The author used traditional
books written by key authors discussing quality which then led to a focussed
search of academic internet databases, library databases and Emerald
journals. Through this method the author uncovered specific, relevant
articles and existing theories pertaining to perceived quality and dimensions
of quality.
Primary data was collected through an in-depth, semi structured interview
with the managing director of “ARC”, Mr. Martin Nolan on Friday the 27th of
February 2015. The author used voice recording technology in order to
analyse the data in detail after the interview.
The interview was probing by asking questions that required elaboration and
used to “gain a greater understanding of the issue under study” (Collis and
Hussey, 2009).

30
The theme of the interview conducted by the author was focussed on the
dimensions of quality that “ARC” perceive as being the most relevant in the
market. The author was collecting data relating to how much emphasis is
placed on brand promotion, pricing structure, advertising, reputation,
product placement, customer relationships, and aesthetics by “ARC”.
The author collected qualitative data throughout the interview and was
exploring understandings, opinions and attitudes. The interview was probing
by asking questions, illustrated below, that required elaboration and used to
“gain a greater understanding of the issue under study” (Collis and Hussey,
2009).
CHARACTERISTIC PROBE
Clarity  Can you give me anexample of this?
 What do you mean?
Relevance  How do you thinkthat relates to the
issue?
 Can you explainhow these factors
influence each other?
Depth  Can you explainthat in more detail?
 Can you give me examples?
Dimension  Is it possible to lookat thisanother
way?
 Do you thinkthat is a commonlyheld
opinion?
Significance  How much doesthis affect you?
 What do you thinkis the most
important?
Bias  Whydo you holdthisopinion?

31
In order to retain the integrity and improve the validity of the qualitative data
collected a detailed summary of the interview was sent to the interviewee for
feedback on the interpretation. This ensured the credibility, transferability,
dependability and confirm ability of the findings.
To further increase the integrity of the qualitative data it was contextualized
in relation to the time, location, social and economic influences of the study.
Drawing on the in-depth qualitative data collected through the interviews a
questionnaire survey method was used to collect quantitative data for the
research study and to enable triangulation of the data.
The questionnaire was designed within the framework of the research
objectives in order to collect data directly related to how consumer’s
perceptions of quality are formed. The structure of the questionnaire
focussed on the intrinsic and extrinsic product attributes that consumers use
to evaluate quality, how they influence buying decisions and aimed to
identify their rank of importance over perception of quality.
A series of dichotomous, multi response, rank order and Likert scaled
questions were used to gather quantitative data and enable statistical
analysis. A pilot questionnaire was given to ten people to ensure no mistake
or error occurred within the questionnaire and to test its functionality.
The survey was conducted between the 2nd and the 7th of March 2015. To
increase the validity of the research findings the sample included peak and
non-peak hours.

32
4.4 Rationale for data collection methods.
Desk research was carried out by the author to gain a foundation for the
study based on existing theories, literature and research in the area of
perceived quality.
The author had full access to the management of company involved in the
research study and this enabled the use of in-depth interview method to
collect qualitative data.
The author was looking for insights and detailed information from the
organisations perspective thus an interview method was deemed to be the
most appropriate. To ensure that all questions were correctly interpreted by
the respondent an interview method was best suited to the subjective topic
of perceived product quality.
The use of probing questions in the interview enabled the author to check
the accuracy of the responses that would not be possible through other
qualitative data collection techniques such as focus groups. The use of the
interview method enabled the interviewee to respond in their own words
and more detailed answers to questions were obtained.
The author decided that a customer questionnaire was the most relevant
method of collecting quantitative data for the exploratory research. The
study is concerned with consumer’s perception of quality and it was
important to establish facts, identify opinions and interpret behaviours in
order to quantify the attributes of quality that consumer’s value.

33
Focus groups were not used as they rely heavily on assisted discussion to
produce results and the author does not possess the skills to act as a
moderator. The author felt that the large volumes of qualitative data
collected through focus groups would be difficult to analyse and overly time
consuming.
Projective techniques were not deemed to be suitable by the author as they
require highly skilled interpreters to accurately interpret the qualitative data
and the author does not possess these analytical skills. The author felt this
technique would be too costly to justify.
The author decided not to use observation as a way of collecting qualitative
data as it is inherently time consuming and resource intensive. The author
felt that observations would be overly susceptible to observer bias and
undermine the reliability and hence the validity of the data collected.

34
4.5 Subject sample and sources of data.
4.5.1 Interview: The author chose the manager director of “ARC” for the in
depth interview as he could provide the author with the most in-depth and
relevant qualitative data required for the study. The interview with the
managing director was carried out on the 4th of March.
4.5.2 The target population: For this research study the author defined the
target population as male and female customers of Woodies D.I.Y retail
stores in Ireland, aged 18-64 and within the weekly time dimension of the 2nd
of March 2015 and the 7th of March 2015. Woodies weekly customer footfall
across 37 stores is estimated at 205,000.
Source of Woodies weekly customers: Rothco Marketing, 2015.
4.5.3 Sampling frame: An indirect frame was used and weekly customers of
Woodies in Wexford town, estimated by the author to be approximately
2,400, were including in the sampling frame.
Source of customer size: Deducted by author with data available from Rothco
marketing.
4.5.4 Sampling type: Due to the lack of a statistically reliable sampling frame
and the exploratory nature of the research non-probability sampling was
used.

35
4.5.5 Sampling method: Homogeneous judgement sampling was used as the
author wanted to focus on particular characteristics of the population that
enabled the research questions to be answered. Time and budgetary
constraints also influenced the decision to use judgement sampling.
The author decided judgement sampling would be effective due to the nature
of the research design and the objectives of the study. The participants were
purposively selected by the author based on similar predefined
characteristics that were of particular relevance to the study. The
questionnaires were administered using a face to face interview style outside
Woodies in Wexford town.
To reduce bias in the sampling the author based judgements on clear
predefined criteria and the theoretical framework of the study. To further
reduce bias in the sampling method the author consulted Jim Copeland the
head of member relations of the hardware association of Ireland, to gain an
insight into D.I.Y customer demographics.
The author accepts that judgement sampling suffers from low levels of
reliability and high levels of researcher bias.
4.5.6 Sample size: As the sampling type is non-probability the use of
statistical formulae is not needed. The author used intuition to determine the
sample size and judged that 200 participants of the estimated sample frame
would enable extrapolation of the research findings.

36
The author conducted 206 interview style surveys across the three days
involved.
4.6 Limitations of study.
The data collection methods used for the quantitative research may not
represent the true population of the target population. The author
recognises that no assurance can be given that each element in the
population had a chance of being included, making it difficult to estimate
sampling variability or to identify possible bias. The author identified this
limitation and attempted to address it through various strategies and by
reviewing previous research in the area.
Competitors of the firm involved in the study were not included in the
collection of qualitative data.
The lack of financial data available from the Irish Hardware Association
limited the author when calculating the value of the Irish D.I.Y market.
Time and budgetary constraints were an issue for the author when
undertaking this study.
Sample Frame
2,400
Sample Size 206
8%
Subject Sample
Sample Frame Sample Size

37
4.6.1 Reflection: Where budgetary and time constraints are not an issue the
author would recommend that probability sampling be used to increase the
reliability and the validity of the findings. Probability sampling would enable
the researcher to make generalisations from the sample being studied to the
population of interest.
The author would also recommend the inclusion of competitors in the
collection of qualitative data. This would enable the development of a deeper
understanding of the importance placed by the incumbents in the industry on
the intrinsic and extrinsic dimensions of quality.
4.7. Programs used to analyse data.
The author used IBM SPSS Statistic software to analyse and quantify the
primary data collected from the customer surveys.

38
Chapter 5
Research Findings
5.1 Introduction
This chapter will report on the qualitative findings from the interview with
the managing director of ARC, Mr. Martin Nolan. The author will then report
on the quantitative findings from the 206 customer surveys that were carried
out. The primary research was carried out within the framework of the
research objectives.
The surveys were analysed using IBM SPSS with a 95% confidence level and
6.5% confidence interval.
5.2 Main findings from interviews
Quality plays a huge role in ARC’s selling strategy to their direct buyers, who
are the nationwide D.I.Y retail outlets. When selling to direct buyers ARC
focusses on emphasising the performance of their products in relation to
conformance with industry standards across their competitors.
ARC feel they have built a reputation in the industry for supplying reliable,
quality brands at a cheaper cost price than their competitors. The reputation
of the company is an area that they focus on when dealing with retailers.

39
The managing director believes that product brand is the most influential
product attribute on consumer’s perception of quality. In the absence of a
recognisable brand he believes that consumers judge the quality of a product
based on specifications, reliability and functionality information on the
packaging. He feels that price is the third most influential product attribute
used to signal product quality. Advertising, the reputation of the company
and visually appealing packaging, he feels have less of an influence on how
perception of quality is formed.
ARC have limited control over the pricing of their products in the retail
market. They rely on retailers to decide on the margin they want to make on
the product, ranging from 40% to 50% mark up.
In relation to product branding they have a high level of influence and also
advertise their leading brands through T.V and newspapers. They are
currently developing a new advertising campaign to strengthen their
company brand name.
Product packaging is also an area that ARC focus on, aiming to visually
differentiate themselves from competitors. Product specifications and
functionality are heavily emphasised on their ARC branded products.
ARC feels that customers value a direct line of contact with the manufacturer
of the product and provide direct contact information on their packaging.
They feel that this availability of direct contact influences customers buying
decisions as it gives a level of quality assurance and reassurance of the
product functionality.

40
The managing director believe that customer’s perception of quality are
formed by the use of extrinsic and intrinsic cues. He believes that the
products position on shelf influences customer’s perceptions to a high
degree. They put a lot of effort into negotiating product positioning and
product placement within retail outlets.
When asked if he felt that the promotion of the company brand should
override product branding he answered that cross branding of company and
product was how they are aiming to build a strong company brand. They aim
to do this by emphasising their company brand on all products that they
supply.
They are striving to influence the perceptions that customers have of their
company by building a strong company brand through advertising campaigns.
They believe that through advertising they will influence customer’s
perceptions of their products and influence their buying decisions.

41
5.3 Main findings from surveys
Question 1.
From the
206
participants
151 were
male and 55
were
female.
Question 2.
The 31-39 age bracket was the largest participant group in the survey.

42
Question 3.
When asked which brands they recognised only 17% of participants
recognised ARC and 20.4% recognised Pro-Line, which is their leading brand
in the market.

43
Question 4.
When judging how important quality is when choosing D.I.Y products 56.8%
(+/- 6.5%) people rate quality as extremely important.

44
Question 5.1
This question looked at whether consumers only buy branded products that
they recognise. Only 46 out of 206 respondents agreed that they do.
Question 5.2
This question looked at whether consumers form their perceptions of quality
by reading product reviews. 52% stated that they do not read reviews and
38.3% replied that they read reviews before purchase.

45
Question 5.3
Does advertising signal to consumers that the products are of high quality?
47.6% of respondents agree and 2.9% strongly agree it does.

46
Question 6.1
This question looks at whether consumers rely on product reviews when
evaluating product quality. Only 16.5% of respondents almost always do.

47
Question 6.2
Do consumers consider who makes the product when evaluating quality? 28
out of the 55 female respondents and 21 of the 151 male respondents stated
that they almost always do.

48
Question 6.3
To evaluate product quality do consumers ask for advice in store? 45% of
male respondents and 42% of female respondents almost always do.

49
Question 6.4
Do consumers ask friends and family for advice when they are evaluating
product quality? 89 out of 151 male respondents hardly ever do and 47 of the
51 female respondents almost always do.

50
Question 6.5
When evaluating product quality do consumers rely on information on
packaging? The author found that 28.2% (+/-6.5%) of people almost always
do.

51
Question 6.6
This question is looking to find out whether consumers rely on price as an
indication of product quality and the author found that 48% (+/- 6.5%) of
people almost always do.

52
Summary of Question 6
The mean of each of the scaled responses was used in order to understand
which behaviour ranked highest when evaluating quality in the absence of a
recognisable brand. The mean indicates that consumers rely on information
on packaging and price more often than the other variables.

53
Question 7
This question asked participants to rank product attributes in the order that
they would use them to judge the quality of D.I.Y products, where 1 was the
most important and 5 was the least important.

54
Question 8
In the absence of a recognisable brand, this question asked participants to
rank extrinsic product attributes in order of influence over their buying
decisions, where 1 was the most influential and 5 was the least influential.

55
Question 9
The final question on the survey aims to discover whether consumers would
overlook brand power and base their buying decision on perceived product
performance. The author found that 86.4% (+/- 6.5%) of people would.

56
The author carried out cross tabulation analysis of age against certain criteria
to discover if perceptions differ across differing age groups. The following
graphs represent those results.

59
5.4 Conclusion
The findings from the surveys highlight the influence that extrinsic product
attributes have on consumer’s perception of quality. The findings also
highlight that consumers buying decisions are influenced by both intrinsic and
extrinsic factors.
The main findings from the interviews illustrate a contrasting view of how
ARC believe consumer’s perceptions of quality are formed to what the
findings from the surveys indicate.

60
Chapter 6
Analysis
6.1 Introduction
In this chapter the author will analyse the data identified in the previous
chapter. This data will be examined in relation to the literature review. The
author will analyse the research objectives, using the results of the surveys
and the in-depth interview conducted.
Of the 206 surveys analysed 73% were male and 27% were female.
6.2 Objective number one
How are consumers perceptions of quality formed?
To create a framework for this objective to be addressed the author first
identified, through question four on the survey, that 57% (+/- 6.5%) of people
view quality as extremely important when choosing D.I.Y products.
In this first research question the author intended to identify key influences
on consumer’s judgments of quality. Garvin (1984) argued that consumers
make quality judgements based on four intrinsic and four extrinsic product
dimensions.

61
The findings indicate that consumers judge the intrinsic product dimensions
at the point of purchase by relying on information on the packaging of the
product, however they only use this information in the absence of extrinsic
cues.
The findings from the interview were that ARC believe consumers
perceptions are formed by the interplay between brand, pricing and product
information on packaging. This view is similar to Garvin (1984) who argues
that firms can manage the interplay between dimensions and influence
consumer perceptions by choosing which dimensions to focus on. ARC
believe that the shelf position of a product and visually appealing packaging
influences consumer’s perceptions.
The author found that consumers use extrinsic cues more than intrinsic ones
when forming their perceptions of quality, similar to Zeithaml (1988) who
argued that at the point of purchase, consumers can only use extrinsic cues
to judge product quality.
The primary research found that consumers use both intrinsic and extrinsic
cues to varying degrees when forming their perceptions. The extent to which
they use one depends on the presence or absence of another.
The findings answer the first research question by indicating that perceptions
of quality are formed by reading product reviews, advertising levels, advice
from peers, brand recognition, product pricing and product description.

62
6.3 Objective number two
Are intrinsic or extrinsic cues more important in signalling quality to the
consumer?
The findings from the interview show that ARC understand that both are
important when signalling quality to consumers and they rank brand as the
most important, followed by product description, pricing and advertising .
The author found that consumers rank these attributes differently with 48%
(+/- 6.5%) using price almost always as an indication of product quality. When
participants were asked to rank in order of importance the attributes they
used when judging product quality the author cross tabulated the responses
and analysed the results using the mean. The most important attribute was
product price, followed by brand, product description, product packaging and
least important was advertising around the product.
Despite advertising being the least important attribute consumer’s rank
when judging product quality, 50% (+/- 6.5%) of people believe that heavy
advertisements around products signal high quality, but are more influenced
by other attributes at the point of purchase. This finding indicates that
consumers identify a brand through advertising and then subconsciously use
the brand to signal quality at the point of purchase.

63
Findings from the interview suggest that ARC believe consumers use the
reputation of the manufacturer to signal quality and by building a strong
company brand consumer’s quality judgments can be influenced. The survey
findings identify that 24% (+/- 6.5%) of people consider who makes the
product when considering product quality.
The author concluded that the findings concur with Zeithaml (1988) who
argued that consumers view extrinsic cues as more important as they are
based upon judgements and expectation of quality at the point of purchase.
The primary research satisfies the second objective and indicates that
extrinsic factors are more important in the D.I.Y industry in signalling quality
to the consumer.

64
6.4 Objective number three
Which key intrinsic and extrinsic product attributes do consumers use to
signal quality?
The author analysed what consumers use to evaluate product quality in the
absence of a recognisable brand using a series of Likert scaled statements in
question six. The responses were cross tabulated and analysed using the
means of each response. The results show that consumers rely on
information on packaging (intrinsic) and rely on price (extrinsic) as an
indication of quality to the same degree. Ranked third was advice in store
(extrinsic), closely followed by considering who makes the product (intrinsic).
These findings highlight the view taken by Garvin (1984) that consumers use
an interplay of attributes when evaluating quality.
The surveys show that 44% (+/- 6.5%) of people ask for advice in store and
34% (+/- 6.5%) ask friends or family for advice when they are unsure about
the quality of a product, highlighting that consumers perceptions are
influenced by peers.
Garvin (1984) highlights that consumer’s use a variety of intrinsic and
extrinsic cues when evaluating product quality and the author found this to
hold true throughout the primary research.
Research by Bergman (1994) identified that consumers use eleven product
attributes when judging product quality. Within the D.I.Y industry the findings
suggest that consumers generally only use five or six.

65
The survey findings indicate that the most important intrinsic factor that
consumers use to signal quality is the information on packaging, with 28%
stating that they almost always use this attribute when evaluating product
quality.
Aaker (1991) argued that the extrinsic product attributes have a direct impact
on customer purchase decision. In question eight the author used a ranking
scale to discover in what order they influence buying decisions. The author
previously concluded that product price and brand were judged to be the
most important attributes when judging product quality so these were
omitted from the question.
The analysis of this question identifies that advertising, product position on
shelf and visually appealing packaging have very little influence on consumers
buying decisions.
By using the mean of the ranked responses the author discovered that the
most influential factor over consumers buying decisions is expectation of
product quality. The questionnaire was designed in such a way that the
author was able to conclude that this expectation is based upon the price
paid for the product, brand recognition and the description of what the
product does.

66
In question nine the author wanted to discover if consumers would overlook
price and brand as indicators of product quality and base their buying
decision on product description. The analysis indicates that 86.4% (+/- 6.5%)
would, which highlights the view taken by Garvin (1984) that the interplay
between the intrinsic and extrinsic dimensions influence consumers
perceptions of quality.
The author concludes that the primary research satisfies the third objective
by identifying and ranking the product attributes that consumers use to
signal quality.

67
6.5 Objective Four
What intrinsic and extrinsic product attributes does ARC focus on?
Through the use of an in-depth interview the author identified the key
product dimensions that ARC focus on. The main attributes that they focus
on are:
1. Building brand awareness in the market through high levels of
advertising
2. Creating visually appealing packaging with product
specifications, performance and functionality heavily
emphasised
3. Product positioning on shelf
They have very little control over the price of their products in the market,
which as the survey findings and the literature suggest is the most important
extrinsic attribute that consumers use to judge product quality.
The literature and the survey findings indicate that advertising levels, product
brand and product description influence consumer perceptions to a high
degree and the interview highlighted that ARC focus on these key intrinsic
and extrinsic attributes.
ARC feel that consumer’s perceptions of quality are influenced by product
positioning on shelf and by visually appealing packaging, however as the
author identified in question eight these attributes have the least influence
on consumers.

68
6.6 Conclusion
The author is satisfied that the themes and research objectives identified in
the literature review have been fully addressed through the use of the
primary research methods. The author has identified within the D.I.Y industry
how consumer’s perceptions are formed , which attributes are the most
important ,to what extent they influence buying decisions and which key
attributes the firm involved in the study focus on.

69
Chapter 7
Conclusions and Recommendations
7.1 Introduction
The purpose of this chapter is to provide conclusions and recommendations
based on the authors research and primary data collected, based on
consumers perception of product quality in the Irish D.I.Y industry. The
author will outline the research objectives of the case study and come to a
conclusion for each one.
7.2 Research objective one
The objective of the first research question was to discover how consumer’s
perceptions of quality are formed within the Irish D.I.Y industry.
7.2.1 Conclusion for objective one
Through the analysis of the primary data the author agrees with the
literature on consumer perceptions and concludes that perceptions of quality
are formed by using both intrinsic and extrinsic product attributes, but to
varying degrees. In the absence of extrinsic cues such as brand recognition
and product advertising 28% of people almost always form their perceptions
of quality by relying on information on the packaging and 44% (+/- 6.5) ask
for advice in store.

70
The author concludes that when all intrinsic and extrinsic attributes are
available to consumers the most influential on perception of quality is
product price. This is followed closely by product brand and product
description, with product packaging and advertising levels being the least
influential on consumer’s perceptions.
7.3 Research objective two
This objective focussed on identifying whether intrinsic or extrinsic cues were
more important in signalling quality to the consumer.
7.3.1 Conclusion for objective two
The intrinsic cues that consumers use were identified in the literature as
being product performance, reliability, conformance and durability, the
extrinsic cues are product price, brand, advertising levels, advice from peers
and visually appealing packaging.
The primary research findings are in agreement with literature and the
author concludes that the intrinsic properties of a D.I.Y product cannot be
judged at the point of purchase. The findings highlight that the extrinsic cues
are more important in signalling product quality to consumers.

71
7.4 Research objective three
In this objective the author wanted to discover which intrinsic and extrinsic
attributes consumers use to signal quality to them.
7.4.1 Conclusion for objective three
The author concludes that consumers use five or six product attributes in the
D.I.Y industry to signal quality to them, which is contrary to the literature
which suggests that consumers use a combination of eight to eleven.
The intrinsic attributes that consumers use to signal quality at the point of
purchase are the technical information provided on packaging and the
reputation of the manufacturer of the product.
In the findings the author established that the extrinsic attributes used to
signal product quality are price, with 48% (+/- 6.5%) using price almost always
as an indication of product quality. This is followed by brand, visually
appealing packaging and advertising levels.
The author concludes that the most influential factor over consumers buying
behaviour is expectation of product quality which as the findings have
indicated is based upon the price paid for the product, brand power and the
description of the product.

72
7.5 Research objective four
Through the use of the in-depth interview the author wanted to identify
which intrinsic and extrinsic product attributes ARC focus on. By extension
the author wanted to identify if they are focussing on the attributes that
consumers value.
7.5.1 Conclusion for objective four
The author can conclude that the attributes they focus on are:
 Brand awareness through traditionally advertising
methods
 Creating visually appealing packaging
 Emphasising product performance and functionality on
packaging
 Product positioning on shelf
The author discovered that ARC maintain very little control of their pricing
structure in the market, with retailers ultimately deciding what to charge
consumers for their products. Through the findings the author identified that
pricing is the most influential attribute on consumer’s perceptions of quality.
The author concludes that by having little control of pricing in the retail
market ARC reduce the influence they can exert over consumer’s
perceptions.

73
The author found that ARC focus on the key areas that consumer’ value, such
as branding and product description and specifications. They do however
focus a lot of effort into attributes that consumers do not value and are not
influenced by, such as visually appealing packaging and product positioning
on shelf.

74
7.6 Recommendation one
The author recommends that ARC focus their attention on the extrinsic
attributes of their products, especially branding. The author recommends
ARC build a social media following through Facebook and Twitter to increase
“Likes” and provide helpful content such as D.I.Y tips and instructional videos
to encourage sharing/tagging, which will lead to higher brand recognition.
Through these mediums they can offer real time consumer advice on D.I.Y
projects and build a loyal customer base and build strong brand awareness.
This strong customer base will positively influence the perceptions of peers in
regard to the quality of ARC’s brands and as the findings show 34% (+/- 6.5%)
rely on advice from peers when judging product quality.
The author recommends to further strengthen their brand and online
presence they reach out to bloggers and D.I.Y YouTube channels requesting
reviews and recommendations.

75
7.7 Recommendation two
In order for ARC to successfully influence consumers perceptions and grow
their market share the author recommends that they focus on controlling the
price of their products in the market.
The author also recommends that they move towards direct online sales by
developing an eCommerce website and selling select products on Amazon in
order to directly control pricing structure and open up a new stream of sales.
ARC could offer free products to top reviewers in exchange for a review. The
author believes that through positive product reviews on Amazon,
consumer’s perceptions and buying behaviour can be influenced as the
findings show that 38% (+/- 6.5%) of people read customer reviews before
purchase.

76
7.8 Recommendation three
The author recommends that to complement their online selling Arc should
use “Google keyword planner” to gain insights into what D.I.Y products
consumers are researching and then use “Google AdWords” to create a
customer focussed marketing campaign. The campaign would emphasise the
quality of their brands at a lower price than leading brands and open up a
new online market.
The author recommends that the “AdWords” campaign should be extremely
focussed and centred on the ARC website and individual products. For
example ARC could have an “AdWords” ad targeting searches for “high
quality tile adhesive”, targeting males in Wexford and these ads would lead
the visitor directly to ARC’s tile adhesive website page and allow immediate
online purchase.
The product landing page on the website would have elements that take into
account that the product is a lesser known brand to encourage a sale, such as
customer testimonials, industry reviews and video presentations.
The author is confident that this strategy would be successful as the research
indicates that 86% (+/- 6.5%) of people are prepared to buy a cheaper
unknown brand with similar product functionality and specifications as
recognisable brands.

77
7.9 Recommendation four
Finally the author recommends that ARC develop a brand awareness
campaign within the retail outlets through in-store demonstrations and
interact directly with consumers, as currently only 20% of consumers
recognise their leading brand. The author also recommends that they
develop close relationships with key employees in large D.I.Y retail outlets, as
a high percentage of consumers perceptions are influenced by advice given in
store.

78
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pp 2-22.

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Research Proposal
Proposed Title:
“An exploratory study into consumer perception of product
quality and how it influences consumer buying behaviour: Case
study of the Irish D.I.Y industry.”

82
Client Organisation:
“ARC building products”: Developer, manufacturer and distributor of world
class building, construction and DIY products based in Gorey Co. Wexford.
Rationale for the study:
Quality has various meanings to different groups of people and the
perception of quality can be formed by extrinsic and intrinsic beliefs. The aim
of this study will be to investigate how consumer perceptions of quality are
formed within the Irish D.I.Y industry and what motivates consumers when
buying a particular item.
The author is interested in what product attributes consumers use to judge
product quality at the point of purchase and to what extent intrinsic and
extrinsic cues influence buying behaviour. The author aims to develop an
understanding into how the firm involved in the study can influence
perceptions because as Crosby (2003) states:
“In order to successfully compete in the unending race for a
customers’ business an organisation and its management must
develop a competitive edge by understanding how customers value a
given quality dimension”

83
Possible research objectives:
1. To investigate the factors that affect perception of quality.
2. How are perceptions of quality formed?
3. Are intrinsic or extrinsic cues more important in signalling quality to
the consumer?
4. Which key intrinsic and extrinsic product attributes do consumers use
to signal quality?
5. To identify emerging trends and niches in the industry.
6. To draw conclusions about the best strategic choice for ARC in order
to influence consumers perceptions.
7. Which product attributes does the firm involved in the study focus
on?
8. Do consumers use quality cues in differing order of importance?

84
Background and relevance:
ARC is an Irish developer, manufacturer and distributor of DIY products in the
Irish market and has been in operation since 2009. They are a small company
with 13 staff and 2 managing directors. They are the second largest supplier
into the Irish DIY retail market with products in over 450 stores nationwide.
There are numerous academic studies on perception of quality and the area
is of huge importance when identifying consumer behaviour and what
influences product choice. In order to identify consumer motivations the
factors that influence their perception must be uncovered. This idea is
illustrated by Zeithaml, (1987), who states:
“Perceived quality is an abstract evaluation or judgement of a product
that is formed from intrinsic attributes of the product and extrinsic
attributes that are not part of the actual physical product”
When permeating existing markets a firm needs to establish consumer
expectations and create a product offering and service that meets these
expectations and this study will aimto identify how a firm can best achieve
this. “Quality may be the most critical component in satisfying an
organisations customer”, (Crosby, L.B, 2003).

85
Proposed research questions:
What motivational factors influence customers’ perception of product
quality?
Does pricing and branding affect perception of quality?
Does advertising influence perceptions to a high degree?
Does visually appealing product packaging influence quality perceptions?
Do consumers use product specifications and functionality descriptions on
packaging to judge product quality?
What strategic approach should a firm take to influence customer
perceptions?

86
Proposed literature review:
The theoretical framework will be based around existing literature to uncover
existing theories about perceived quality and how these theories can be built
upon. The framework will also be based on literature concerning consumer
motivational factors.
1. Ansoff, H., (1988) Corporate strategy.
2. Crosby, L.B et al, (2003) Manage your customers perception of quality,
Review of business, Vol. 24, Issue I.
3. Cunningham, J. and Harney, B., (2012), Strategy and strategists.
4. Faulkner, R. (2007), Perspectives on supply chain management and
logistics: Creating competitive organisations in the 21st century.
5. International journal of market research, 2014, vol 56, issue 2, pp149-
166.
6. Kureemun, B. and Fantina, R. (2005), Your customers’ perception of
quality.
7. V. A. Zeithmal, (1988), Consumer Perceptions of Price, Quality, and
Value: A Means-end Model and Synthesis of Evidence, Journal of
marketing, vol. 52, July, pp. 2-22.
8. Wunker, S. (2011) Capturing new markets: How smart companies
create opportunities others don’t.

87
Intended methodology:
The existing literature will be reviewed to uncover a theoretical framework. A
mixed method approach will be taken with the use of in-depth interviews
with managing directors of the firm and the sales reps who are in direct
contact with customers, focus groups and surveys. Qualitative data collected
through the interviews and focus groups will be used to generate a
questionnaire for customers of a large D.I.Y retail outlet. This will enable
triangulation of the data.
An interpretive epistemology will underpin the qualitative methods being
used to gather detailed, insightful and in-depth data. The research will be
inductive with the generation of theory resulting from the correlation of
primary and existing research.
The study will be exploratory, looking for trends, patterns, insights and
uncovering motivational factors in the industry.
Expected outcomes:
The study will uncover the relationship between perception of quality,
pricing, branding, customer loyalty and how to best influence buying
behaviour. The findings will identify emerging trends and niche areas within
the industry and the client organisation will then be able to develop a
strategy to capture these markets and create a sustainable competitive
advantage.

88
Bibliography
Crosby, L.B et al (2003), Manage your customers perception of quality,
Review of business, Vol. 24, Issue I.
Faulkner, R. (2007), Perspectives on supply chain management and logistics:
Creating competitive organisations in the 21st century.
V. A. Zeithmal, (1988), Consumer Perceptions of Price, Quality, and Value: A
Means-end Model and Synthesis of Evidence, Journal of marketing, vol. 52,
July, pp. 2-22.

90
Interview Questions
Q1. Which dimensions of product quality to ARC compete in?
Performance, Reliability, Conformance, Features, Aesthetics or perceived
quality.
Q2. Do you feel that the reputation of ARC influences consumer buying
decisions/ direct buyers?
Q3. Which of the following cues does ARC feel they are best suited to
influence and manage?
Q4. Does ARC provide a direct line of customer contact with end users
through either traditional methods or on line?
Q5. How does ARC feel their customer’s perceptions of quality are formed?
Q6. Which product attributes do you feel consumers use to signal quality?
Q7. How much emphasis do ARC place on Brand promotion, pricing structure,
advertising, product placement and customer relationships?
Q8. Do ARC feel that the promotion of the company brand should override
product branding?
Q9. What is ARC’s best performing brand?
Q10. Does ARC think that consumers research products before purchase?

91
Probes used by author throughout interview
CHARACTERISTIC PROBE
Clarity  Can you give me an example
of this?
 What do you mean?
Relevance  How do you think that
relates to the issue?
 Can you explain how these
factors influence each other?
Depth  Can you explain that in more
detail?
 Can you give me examples?
Dimension  Is it possible to look at this
another way?
 Do you think that is a
commonly held opinion?
Significance  How much does this affect
you?
 What do you think is the
most important?
Bias  Why do you hold this
opinion?

92
Perception of Quality in the Irish D.I.Y Retail Industry
D.I.Y products in this survey refer to Sealants, Adhesives, Anti-Mould
Treatment, Fillers, etc. NOT TOOLS
Q 1. Gender
Male
Female
Q 2. Age group
18-24
25-30
31-39
40-54
55+
Q 3. Which of the following D.I.Y brands do you recognise? (Select all that
apply)
Everbuild
ARC
Durabond
Gorilla
Evo-Stik
Gripfill
Unibond
MouldX
Pro Line

93
Q 4. How important is quality to you when choosing D.I.Y products?
Extremely Important
Quite Important
Moderately Important
Slightly Important
Not at all Important
Q 5. Please indicate a response to the following statements
Strongly
Disagree
Disagree Neutral Agree Strongly Agree
"I only buy branded D.I.Y products that I
recognise"
"I read customer reviews of the D.I.Y product I
am looking to purchase"
"I pay attention to visually appealing packaging
of D.I.Y products"
"Heavily advertised D.I.Y brands signal to me
that the product is of high quality"

94
Q 6. When evaluating the quality of a D.I.Y product, which of the following do you do?
Hardly
Ever
Occasionally Sometimes
Almost
Always
Always
Rely on product reviews
Consider who makes the product
Ask for advice in store
Ask friends or family who have
used the product
Rely on information on packaging
Rely on price as an indication
Q 7. In what order would you use the following to judge the quality of a D.I.Y product?
Please rank from 1 (most important) to 5 (least important)
☐ Price of the product
☐ Advertising around product
☐ The packaging of the product
☐ The brand of product
☐ Description of what the product does well

95
Q 8. In what order do the following influence your buying decision?
Please rank from 1 (most influence) to 6 (least influence)
☐ Position of product on shelf
☐ Visually appealing packaging
☐ Expectation of product quality
☐ Advice from family and friends
☐ Value for money
☐ High level of advertising
Q 9. Would you buy a cheaperunknown brand that has the exact same product
Functionality and specifications as a recognisable brand?
Yes
No
Thank you very much for completing my Questionnaire
David Nolan

Dissertation 2015

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