Effect of Demarketing on Consumer Perception of Product Quality

Abstract:

The study examined the effect of demarketing on consumer perception of product quality. In this survey, we find out the extent to which demarketing Strategy decreases demand and affect consumer perception of product quality; examine the effect of decrease in product demand on consumer perception of product quality; investigate the extent to which increase in product price affect consumer perception of product quality; investigate the extent to which limited product distribution affects consumer perception of product quality and determine the effect of narrow advertisement on consumer perception of product quality. Data for this study was collected using structured questionnaire containing 25 questions. Out of 350 questionnaires that were distributed, 323 were returned while 312 (89%) were usable. Data analysis was done using Cronbach’s Alpha, frequency analysis, descriptive analysis, Pearson correlation matrix and one sample t-test. The t-test was used to accept/reject the hypotheses, through testing the average means of single sample based in the value of the scale midpoint. The Pearson correlation coefficient test results show that there is a significant positive relationship between the variables. It was recommended among others that Producers of essential goods/ services can improve their product perception in the minds of consumers by increasing product price as higher prices indicate product quality, decreasing offer which is reflected by having the product unavailable in the market, which will indicate the rarity of the product thus leading to the increase in its value and quality. In addition to limited distribution, which means rendering the product unavailable on the wide scale, and narrow advertising which reduces the incidence of the customer remembering the product; all these factors lead to increasing product value in the customer’s perception.