Literature review

Price and product quality
Price and product quality are vital variables in marketing. Marketers using characteristics and price of product as significant decision variables affects evaluation of product, potential consumers’ buying behavior and current customers (Chang and Wildt, 1994). Rao and Monroe (1989) point out that it has a significant and positive effect between price and product quality and brand name and product quality. Besides, consumers prefer use price to indicate quality for considerably costly products (Olson cited by Rao and Monroe, 1989). However, price has both positive and negative influence, ‘price had a positive effect on perceived quality, but a negative effect on perceived value and willingness to buy. Favorable brand and store information positively influenced perceptions of quality and value, and subjects’ willingness to buy’ ( Dodds,Monroe and Grewal, 1991, p.307)

Service
It is important to understand that service is also a powerful variable in marketing. Gronroos (1984) suggests that comparing with traditional marketing activities, it may be an influential marketing function that managing a splendid interaction between consumers and marketers can generate more beneficial quality of service; besides, it is also vital for marketers to manage the perceived the quality of service .

Product variety
Different product varieties can attract different customers. Lancaster (1990) indicates that product could have different varieties and qualities because different consumers have distinct characteristics and preferences. In addition, product variety enhances marketing competitiveness, ‘The degree of product variety increase with the competitiveness of the market, in the sense that the variety is greater under monopolistic competition than under monopoly, and greater under monopoly threatened by potential entry than