Abstract
This paper presents a quantitative study investigating the effect of perceived price on product quality and product assortment and the resultant impact on customer satisfaction. A crosssectional data was collected from a convenience sample of shoppers in food retail stores in Johannesburg, South Africa using a self-administered structured questionnaire. A total of 280 questionnaires was returned, yielding an 89.2% response rate which is suitable for multivariate data analysis techniques. The results show a strong effect of product quality on customer satisfaction; customers’ perceptions of price has a strong effect on their evaluation of product assortment. The South African food retailers’ product quality, perceived price and product assortment meet customer needs, with perceived price influencing customers’ evaluation of product assortment by helping customers to find the products they want. This paper contributes to the customer satisfaction literature through investigation of store image attributes which are useful in improving customer satisfaction.