A comparison of apparel quality: Outlet stores versus department stores

Past research (Forsythe 1991) has shown that consumers believe there is a strong relationship between price and quality; they also believe there is a strong relationship between brand and quality. Therefore, when comparing similar pieces of apparel, items with a designer brand or a higher price are perceived, by most customers, to be of higher quality. The purpose of this study was to compare the pricing and quality of identical designer merchandise sold in department stores and manufacturers' outlet stores. The researchers found no significant differences in the quality of apparel sold in the two retail formats; however, there was a significant difference in the price. The department store merchandise was 31 per cent higher in price than the outlet store merchandise.