PERCEIVED QUALITY AND PRICE: THE RISE OF PRIMARK IN UK

Perceived quality and price: The Rise of Primark in UK



Perceived quality and price: The Rise of Primark in UK

Introduction

The purchase process followed by customers involves carrying out five consecutive phases of behaviour. First, the customer perceives the product, thereby considering its availability, quality, price and the marketing activities. Subsequently, the customer estimates the perceived value of the product through a weighting of the expected benefits and the required sacrifices. Third, the customer compares the perceived values assigned to the available alternatives and then makes a decision. This decision leads to the action - purchasing or not purchasing the product - and finally, after the purchase action, the customer experiences a series of post-purchase behaviours, which are reflected by the level of satisfaction/dissatisfaction experienced.

Perceived quality and price: The Rise of Primark in UK

Primark, whose profits reached £111million for the first half of its financial year, has been the main beneficiary but rivals such as New Look, TK Maxx, George, Tesco, Zara, Matalan and H&M have also benefited. Primark's success is based on its ability to capture the latest catwalk trends and deliver cut-price versions within a matter of weeks. It has won fans from across the income brackets, from the poorest shoppers to celebrities and models, who have dubbed it Pradamark. According to former Tatler editor Jane Procter: "It's either Prada or Primark. I don't see the point of shopping anywhere in between." The surge came in a year when the opening of Primark's flagship store in London's Oxford Street triggered a near riot, despite offering the same range as the chain's other stores.

"Value clothing has become a lot more accessible and more importantly acceptable, especially with the growth of Primark and the supermarkets," said a spokesman for retail analysts Mintel. "For many the draw of the 'buy today, wear tonight, forget next week' outfit is just irresistible." In order for firms to reach their exchange objective, it is necessary for them to know the various aspects that influence this purchase process. To do so, they must assure that the perceived value of the products that they offer on the market is greater than the perceived value of the rest of the available alternatives. The importance of the perceived value of the product centres on the fact that it will determine the greater or lesser willingness shown by consumers to purchase the product, such that the greater the perceived value, the greater the purchase intent shown by consumers (Monroe, 1979; Monroe and Krishnan, 1985; Dodds and Monroe, 1985).

It is here where the output produced is identified with the customer satisfaction that the firm is capable of generating. Finally, the third stage follows consumption, where the firm has the task of developing and maintaining the value created in the previous stages. In this case, the third level of output would be identified with a certain index of loyalty towards the firm, which will provide the firm with future action guides that are ...