Advertising, brand penetration and retailer service have been playing important roles in marketing for a long time. There are many studies which discuss about the effects of advertising on brand penetration, the effects of advertising on perceived quality, and the effects of brand penetration on perceived quality. However, the relationship among the advertising, brand penetration and perceived quality has rarely been studied. Furthermore, the studies about the effects of retailer service on perceived quality are much fewer. Thus, the main purpose of this study is to examine the effect of brand penetration and retailer service on perceived quality. The experiment with 2¡Ñ2¡Ñ2 factorial design is conducted to collect the empirical data. In the factorial design, we have 217 respondents in the 8 cells. The experiment variables have the effects of advertising, brand penetration and retailer service on perceived quality. The respondents are the more than the junior students of Sun Yat-sen University and National Taiwan University, and the product of this study is ¡§Notebook¡¨. This study applied structural equation model (SEM) to verify. The main results of this study are as follow: (1) Advertising positively influences perceived quality and that brand penetration partially mediates this influence. (2) Advertising positively influences perceived quality and that retailer service partially mediates this influence. The findings of this study can help the chief marketing officer to make strategic decision to increase the effect of advertising on perceived quality effectively.