Evidence suggests that 80% of the value consumers perceive in any given brand is generated through product or service quality perceptions. There is little doubt that a significant part of these perceptions is produced by the effects of tangible or perceived product or service attributes consumers experience during usage. Taste, texture, sound, look, smell, along with a solid performance that can be perceived or measured, form the basis for the quality perception we associate with certain products and services. The evaluation of any brand and its performance is rarely objective. The perceptions people experience when using a brand may be formed and influenced not only by intrinsic brand factors, such as product attributes or features, but also by extrinsic ones such as color codes, images or symbols, and messaging. Consumers rarely possess enough knowledge or pertinent information to evaluate a product or service objectively. This chapter explores the relationship of perception versus reality in branding, using references from several studies that have specifically researched this subject.