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Why is the quality of a product important
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Customer-Driven Quality
Since each consumer has a unique taste, background, and beliefs, the value of a good or service will have a different meaning to various consumers. Only the party that receives the good or service can appraise the true value of the good or service.
Manufacturing
Maxx-Air Vent Corporation (MA) is a plastic vent manufacturer located in Tampa Florida. MA’s largest customer base is found in the recreational vehicles (RV) industry. MA manufacturers the air vents found atop of most RVs throughout the nation. MA is held to the highest quality standards by their RV customer base. The vents must meet critical visual and dimensional criteria in order to be accepted by RV. Domestic competition continually enforces the quality expected for the prices paid by RV. MA explored foreign manufacturers and suppliers but the quality would not meet RV’s expectations. MA experimented with foreign manufacturing in a cost cutting measure to manufacture foreign and add a mark up. The vents were sent back to MA and full refunds were expected because the products did not meet RV’s expectations. MA was forced to eat millions of dollars in bad product or else lose RV as a customer. MA moved all manufacturing operations back to Tampa and instituted a new quality standard. The new quality standard was devised by an outside firm and was expensive to introduce, however, MA was able to repair their relationship with RV and procure future sales opportunities because of their newly found quality standards. MA was able to repair poor quality and customer satisfaction issues with an enhanced and directed quality policy. MA took the necessary actions to meet RV’s customer satisfaction needs.
The definition of quality varies based upon the industry defining the quality. In manufacturing quality is the foundation upon which customers are kept and acquired. Quality in a manufacturing setting can be measure and monitored because the quality is physical. The quality of the product separates competing organizations in the industry. Manufacturing is different from the service industry because both provide a product/service. Customers pay for the product/service and expect quality. Non-profit organizations typically provide the best quality possible with funds and resources available. Manufacturing and non-profit quality standards are different because of the expectations. Government function is not concerned with quality because the expectation does not demand quality.
Protective packaging is sold to organizational customers through select distributor networks via personal selling. Sales commissions for AirCap are set at 2%. Often, manufacturers must have a regional presence to be successfu...
This is first and important step to any organization is maintaining good quality which meets the needs and expectations of consumers. A good service with an excellent quality is the critical factor and continuous monitory effort to a business successful.
Alan needed to figure out how to increase profitability, the goal he was hired to achieve, by restructuring and educating his employees in any way he saw fit. To exemplify the grandeur of his position, Alan Thompson reported regularly to the President of Texaco Canada. Having a background with Redpath Sugar, a major sugar manufacturer, Alan’s vision became clear soon after starting at Texaco Canada: Deliver the right product, for the right price, all the while understanding exactly what it was the customer desired out of their business transaction. Alan’s examination of the business concluded that Texaco had multiple product lines, some redundant, and the missing link was that customer’s needs were not being matched to the right product in Texaco’s line up. He exclaimed in our interview that in his industry, the 80/20 rule was prevalent. In other words, Alan found 80% of customers concerns when dealing with Texaco were driven by price of product, while only 20% of customers concerns were driven by purchasing the right product that would allow a lower compound cost when down time and cost of service were included. Alan’s strategy had to be, from an operational standpoint, to figure out ways to convince the 80% of customers that they needed to transfer their vision of cost to a more long term model. That is, in order to lower costs over the long term of operating a business, that a higher quality product being used in their vehicles, over time, would increase productivity of their vehicles, decrease the downtime associated with servicing vehicles, and increase profitiablity. By taking this customer first approach, Alan found that Texaco Canada could increase its’ sales of a broader scope of available products, and not just increase sales of their cheapest, lowest quality oils and
(2000) found that hedonic products have higher premiums when promoted by hedonic promotional campaigns. However, a study by Dhar and Wertenbrosch (2000) indicates that when faced with the choice to give up a product for pleasure or for use; products for pleasure are the ones to be given up first.
Quality is an important part of any business rather from a customer’s perspective or a producer’s perspective. Quality from a customer’s perspective is they “want value and quality has become a major factor in the value of products and service” (Russell & Taylor, 2013, pg. 53). “The customer is the most important part of the production line” (Russell & Taylor, 2013, pg. 53). This can be referred to as quality of design meaning “involves designing quality characteristics into a product or service” (Russell & Taylor, 2013, pg. 54). Now let’s look at the quality from a producer’s perspective. This can be referred to a quality of conformance meaning “making sure the product or service is produced according to design” (Russell & Taylor, 2013,
Sealed Air Corporation had set itself apart as the market leader in the 1970’s due to their focus in optimizing profit and supporting technological innovation. They were the first to develop closed-cell, lightweight cushioning material, as well as the first to introduce foam-in-place packaging system, and the first to engineer a complete solar heating system for swimming pools. Sealed Air planned to maintain that positioning into the next decade as their long-term goal. Acting on that goal, Sealed Air trademarked the name AirCap for its closed-cell, lightweight cushioning material and AirCap quickly became its most profitable product. This caused concern for Sealed Air because the unanticipated competition in the US developed
... of consumer behaviour, lays emphasis on the objectivity of science and the consumer as a reasonable and sensible decision maker. While, the interpretive point of view is in contrast to that of the positivist, in that it emphasises on the importance of the subjective meaning of the consumers individual experience, hence, it suggest that whichever behaviour a consumer performs is subject to diverse interpretations to a certain extent than just a single explanation to it.
Value is an integral part of marketing (Newman, 2015). If consumers are provided with goods and ideas of greater value by a business compared to its competitors, that have shown the businesses in depth market research taken in order to fulfill its consumer’s particular needs then it can create longer affiliations with the consumers due to the level of satisfaction and quality provided. Based on the concept of “Demand Chain Management” (Madhani, 2015).
Every company wants to understand why people decide to buy its products or others. Firstly, we have to understand why people buy certain kind of product. People buy products because they need them. A need is activated and felt when there is a sufficient discrepancy between a desired or preferred state of being and the actual state. (Engle£¬Blackwell and Miniard. 1995. p407 ) For example, when you feel hungry, what you needs is some food. It is very important for marketer to understand the needs of consumers. All the consumers may have the same needs, but the ways which they satisfy what they need are different. Here is a example, Chinese people would choose rice when they feel hungry, whilst British people may choose bread to satisfy their needs.
Quality is defined as a process that measures the requirements of the satisfaction pertaining to the end product, it can be measured as integrity, customer satisfaction and on a personal level of satisfaction, as well as identify if a process or procedure is working within its control limits. Quality, typically identified and perceived as a nonvalue added process simply because in a perfect world were all processes are built and constructed, the design already includes the quality within the process, solely the end customer is not willing to pay extra money for a quality issue, their expectations are when they purchase a product it is a quality product. So when the process is out of control we risk the chance of a high level of customer dissatisfaction
Nowadays, the quality standards play a very important role in the international business. The movement towards standardization began changing the whole concept of managing business. The importance of quality awareness is accepted by a great number of companies in Europe and in the United States. It is recognized as an essential criteria for the sale of products and services all over the world.
Value is perceived in different ways, by customers and organisations in relation to the product or service that is provided. The definition of value is what something is worth and the desirability. Also what is gained from the money aspect, and to whether the product or service actually fulfils its purpose.
Quality is a very important thing in an organization; therefore it is not possible to improve the quality of a product or service substantially without major changes in all aspects of the organization. Because quality is so important if changes aren’t made throughout the organization the output of the product will no be very successful. Everyone in the organization plays a major role in the out come of its products.
Customer behavior can be defined as the process used by organizations, individuals and groups, to select, buy or use particular products or services to satisfy their needs and the impact it has on the society (Wikipedia, consumer behavior). Every product in the market is given a different value by an individual user based on the need it satisfies and also the level of the want. For example a person may put choosing a car as just for a means of transport from point A to point B but for another individual a car is not only used as a mode of transport but also as a means of his lifestyle. Many marketers use these difference of needs in consumers to create different marketing campaigns to attract consumers that use their products.
Every consumer has a unique set of needs and resources, so no two consumers will place the same customer value on the same product or service.