Perceived quality refers to a customer's perception of how well a product or service meets its intended purpose compared to alternatives. It differs from actual quality which is how well the product delivers and manufacturing quality which is conforming to specifications. Perceived quality is influenced by word of mouth, personal needs, and past experience. It is assessed using service quality dimensions like reliability, responsiveness, assurance, empathy, and tangibles. Customers judge perceived quality as expectations exceeded, met, or not met based on a comparison of expected service and perceived service.