Effect of perceived brand quality on performance of medium-sized restaurants in Kisumu City, Kenya

Abstract

Perceived quality is how a customer evaluates the overall excellence or superiority of a product. Many companies nowadays place a high value on perceived brand quality, and actions taken to increase brand equity may be impacted by it. The majority of the reviewed studies did not look at non-financial performance aspects like customer satisfaction, acquisition, retention, sales growth, and effective and efficient marketing programs. Moreover, even the studies that looked at perceived brand quality, did not consider it in the context of restaurant industry. However, most of the reviewed studies demonstrated that perceived brand quality, has a considerable effect on organizational performance. The current study was anchored on Aaker brand equity theory. The correlation study design and the quantitative paradigm research philosophy helped the researcher in testing hypothesis. The study obtained a sample of 52 respondents, which comprises owners/managers of selected restaurants from a population of 60 registered restaurants using a saturated sampling technique. Results revealed that perceived brand quality (β=.114, p=0.000) has statistically and significant positive effect on non-financial performance of restaurant enterprises in Kisumu city. The study concluded that perceived brand quality, significant predictors of non-financial performance of restaurants; =0.672; F (2, 49) =20.170, p<0.000. The study recommended that firms should consistently improve perceived brand quality among restaurants customers to bring passionate attachment and lasting brand feelings among prospective customers. The academic community, businesses, government authorities, and the general public will find the study's findings useful.