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What do we mean by quality?
A product or service is of good quality if it meets the needs and expectations of the customer
What are tangible measures of quality?
Reliability
Functions and features
Support levels and standards
Cost of ownership (e.g. repairs
What intangible measures of quality?
Brand image
Exclusiveness
Market reputation
Why is quality so important in business?
Markets are highly competitive:
customers are more
Knowledgeable and demanding
Prepared to complain about poor quality
Able to share information about poor quality (e.g via email or social networking)
If a business can develop a reputation for high quality, then it may be able to create an advantage over its competitors
What are the benefits of greater quality to a business?
Customer satisfaction
Repeat purchase
Customer recommendation
Lower marketing costs
Higher customer loyalty
What is quality and management?
Fewer businesses are competing solely on price
At a similar price, the higher-quality product is likely to win
Quality can enable a business to differentiate its product from the competition
What are examples of businesses using quality as a source of competitive advantage?
Apple
Starbucks
BMW
Disney
Waitrose
What can quality refer to?
Buying process
Product reliability
Cost of Ownership
After-sales service
What businesses compete in both low price and high quality?
Premier Inn
Ikea
Aldi
Nando’s
Kia
