Short answer

Prioritize tangible product quality and clearly articulate the value proposition to cultivate customer satisfaction and drive repeat business.

Field
Innovation & Markets
Source
Marketing and Business Strategy (2023)
Method
Quantitative explanatory research using Structural Equation Modeling (SEM).
Sample
104 participants
Evidence
Strong effect

Investments in superior product quality and a strong emphasis on customer-perceived value directly correlate with increased customer satisfaction and, consequently, a higher likelihood of repeat purchases. This innovation & markets research insight is drawn from a 2023 study published in Marketing and Business Strategy. Using Quantitative explanatory research using structural equation modeling (sem). with 104 participants, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Prioritize tangible product quality and clearly articulate the value proposition to cultivate customer satisfaction and drive repeat business.

Study
Innovation & MarketsRecentStrong effect

Enhancing Product Quality and Perceived Value Drives Customer Repurchase Intent

Investments in superior product quality and a strong emphasis on customer-perceived value directly correlate with increased customer satisfaction and, consequently, a higher likelihood of repeat purchases.

Marketing and Business Strategy · 2023

01

Key Findings

  • 01Product quality has a positive and significant effect on customer satisfaction.
  • 02Customer-perceived value has a positive and significant effect on customer satisfaction.
  • 03Customer satisfaction has a positive and significant effect on repurchase buying.
  • 04Customer-perceived value has a positive and significant effect on repurchase buying.
02

Application

Design takeaway

Prioritize tangible product quality and clearly articulate the value proposition to cultivate customer satisfaction and drive repeat business.

How to apply

When developing new products or refining existing ones, conduct thorough user research to understand not only functional requirements but also the perceived value drivers. Ensure that marketing collateral accurately reflects and amplifies these value points.

Project actions

  • 01When defining your product, consider both its functional aspects (quality) and how you will communicate its benefits to the target user (perceived value).
  • 02Think about how customer satisfaction can be measured and how it might influence future purchasing decisions in your design project.
03

Method & Evidence

AimTo investigate the direct and indirect relationships between product quality, customer-perceived value, customer satisfaction, and repurchase intent.
MethodQuantitative explanatory research using Structural Equation Modeling (SEM).
ProcedureA survey questionnaire was administered to consumers who had previously purchased products. The collected data was then analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the relationships between the variables.
Sample104 participants
ContextFast-food restaurant chain (KFC Cempaka Putih Branch).

Variables

IV["Product Quality","Customer Perceived Value"]
DV["Customer Satisfaction","Repurchase Buying"]
CV["Demographics of consumers","Specific product category (e.g., fast food)"]
04

Strengths & Limitations

Strengths

  • +Utilizes a robust quantitative method (PLS-SEM) to analyze complex relationships.
  • +Provides actionable insights for managerial practices in marketing and product development.

Limitations

The findings might not apply to products where price is the sole purchasing driver or where brand loyalty is exceptionally strong and overrides quality concerns.

Reliability & validity

The study's reliability would be enhanced by using validated scales for measuring product quality, perceived value, and satisfaction. Validity is supported by the use of SEM, which tests the proposed relationships between constructs.

Think critically

To what extent does brand reputation or emotional connection to a brand mediate the relationship between product quality, perceived value, and repurchase intent?

05

Design Principles

"Customer loyalty is built on a foundation of demonstrable product quality and a strong, communicated perceived value."

Understanding the drivers of customer loyalty is crucial for sustained business success. This research highlights that focusing on tangible product attributes and the subjective value customers assign to a product are key levers for fostering repeat business, rather than solely relying on transactional marketing efforts.

06

What This Means for Your Design

Making products really good (quality) and making sure customers feel they are getting a good deal for their money (perceived value) makes them happy and more likely to buy again.

How to use in your project

  • 1.Reference this study when discussing how product attributes (quality, value) influence user behavior and market success in your design project's analysis section.
07

Add to My Project

08

Quick Cite

Paragraph starter

Research by Noviana and Oktavia (2023) indicates that product quality and customer-perceived value are significant drivers of customer satisfaction, which in turn positively influences repurchase intent. This suggests that design decisions focusing on material integrity, functional excellence, and clear value communication are critical for fostering long-term customer relationships and market success.

09

Source

Marketing and Business Strategy

The Effect of Product Quality and Customer Perceived Value on Repurchases with Intervening Satisfaction

journal · 2023

View source

Questions About This Research

What does the research say about enhancing product quality and perceived value drives customer repurchase intent?
Prioritize tangible product quality and clearly articulate the value proposition to cultivate customer satisfaction and drive repeat business. Evidence: Marketing and Business Strategy (2023).
Why does "Enhancing Product Quality and Perceived Value Drives Customer Repurchase Intent" matter for design?
Understanding the drivers of customer loyalty is crucial for sustained business success. This research highlights that focusing on tangible product attributes and the subjective value customers assign to a product are key levers for fostering repeat business, rather than solely relying on transactional marketing efforts.
How can designers apply this research?
Prioritize tangible product quality and clearly articulate the value proposition to cultivate customer satisfaction and drive repeat business.
What were the main findings?
Product quality has a positive and significant effect on customer satisfaction.. Customer-perceived value has a positive and significant effect on customer satisfaction.. Customer satisfaction has a positive and significant effect on repurchase buying.. Customer-perceived value has a positive and significant effect on repurchase buying.
What research method was used?
Quantitative explanatory research using Structural Equation Modeling (SEM). with 104 participants.
How strong is the evidence?
Evidence strength is rated Strong effect, based on a 2023 journal from Marketing and Business Strategy.
What should I do differently in my next project?
When developing new products or refining existing ones, conduct thorough user research to understand not only functional requirements but also the perceived value drivers. Ensure that marketing collateral accurately reflects and amplifies these value points.
What are the limitations?
The study was conducted at a single branch of a fast-food chain, limiting generalizability to other contexts or industries. The reliance on self-reported data through questionnaires may introduce response bias.