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Sunday, September 24, 2017

Building Strong Brands
by David A. Aaker. New York: The Free Press, 1996.

"Perceived Quality Drives Financial Performance."

"Studies using the PIMS database (annual data measuring more than one hundred variables for over 3,000 business units) have shown that perceived quality is the single most important contributor to a company's return on investment (ROI), having more impact than market share, R&D, or marketing expenditures. Perceived quality contributes to profitability in part by enhancing prices and market share. The relationship holds for Kmart as well as Tiffany: Improve perceived quality, and ROI will improve." (page 17)