Quality Management

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