Dale (2007) argues that quality and service improvements lead to enhanced company revenues and higher margins. Discuss Dale’s argument.

Dale (2007) argues that quality and service improvements lead to enhanced company revenues and higher margins. Discuss Dale’s argument.

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Introduction

Many companies have benefited from improvements of quality and service both internal and external aspect in global market which performance in company revenues increasing, higher margins, cost reduction, reputation of the company enhancement and some other positive effects on social or public perception. However, quality is an item that has visible and invisible inherent characteristics which can satisfy customers’ requirements (Dale, 2003). Therefore, quality of product is fundamental to firms, customer satisfaction will affect the profit of companies directly and quality improvement strategy is an effective approach to get financial return. In addition, as another form of definition of quality to exist, service for customers also an important reason for firms’ financial benefits. Using quality service to make customers feel more satisfied or resolve their problems to change dissatisfied emotion usually increase their loyalty (Dale, 2003). As a result, the problem of product often can be made up by quality service even brings new customers. In others words, it can not only avoid the loss, but also get more benefits to some extent.

Although quality service improvements strategy is profitability, there also exist some failure cases that some companies assume the financial benefits of quality as a religion to believe in but go a wrong way so that fail to get outcomes of their quality efforts (Rust & Zahorik, 1995). This phenomenon indicate that ignore the effective approach and blind pursuit of financial benefit will lead to the consequences that fail to achieve the expectation even caused losses to companies. In this situation, it is necessary to firms that to make service quality improvement efforts financially...


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