6.2.2

Measuring Quality

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Measuring Quality

How a business measures quality depends on the product or service that the business produces. Different products will have different things that are important to measure. For a car, a business may randomly test the engines to make sure they have the correct horsepower. To measure quality, businesses can use:

Customer feedback

Customer feedback

Getting reviews from customers is a common way that firms measure the quality of a product or service.
- For example, sites like Airbnb ask people who stay in properties listed on the website to rate them afterward.
- TripAdvisor collects reviews from customers and some restaurants now have hand-held technology to allow people to review their experience instantly.

Customer surveys

Customer surveys

Firms will sometimes do more detailed customer surveys, asking them about their experience with the good or service.
Using customer surveys, businesses can find out if there are quality problems in any of their products.

Identifying Quality

To measure and identify quality, businesses can:

Check quality in production process

Check quality in production process

Businesses can check the raw materials from the suppliers, take random samples of products that are in the middle of being produced (made) and take random samples of finished products.
It can be expensive to do this checking, but it means that defects are spotted before they reach customers. It also may stop a business bearing the costs involved in processing returns.

Customer service and complaints

Customer service and complaints

Customer service is a common way for businesses to identify problems that they have with their product.
Customer service is beneficial because it helps businesses to correct an issue that the business has not yet identified.
There are monetary costs and reputation costs from having dissatisfied customers.

1

Exploring Business

2

Marketing Campaigns

2.1

Marketing

2.1.1Setting Marketing Objectives 2.1.2Customer Needs 2.1.3The Market 2.1.4Competition & The Market 2.1.5Consumer Behaviour 2.1.6Market Research 2.1.7Forms of Market Research 2.1.8Market Segmentation 2.1.9Cultural & Social Factors in Marketing 2.1.10Promotional Decisions 3 2.1.11Pricing Strategies

2.2

Marketing Mix

2.2.1Marketing Mix 2.2.2Product Life Cycle 2.2.3Pricing Decisions & Price Skimming 2.2.4Pricing Decisions & Price Penetration 2.2.5Promotional Decisions 2.2.6Promotional Decisions 2 2.2.7Promotional Decisions 3 2.2.8Market Mapping

3

Business Finance

3.1

Sources of Finance

3.1.1Internal Finance 3.1.2External Finance 3.1.3External Finance 2 3.1.4Sources of Business Finance

3.2

Financial Planning

3.2.1Revenue 3.2.2Costs 3.2.3Cash & Cash Flow 3.2.4Cash & Cash Flow 2 3.2.5Break-Even Analysis 3.2.6Profits

3.3

Financial Statements

3.3.1Balance Sheets 3.3.2Income Statements 3.3.3Liquidity

4

International Business

4.1

Globalisation

4.1.1Growing Economies 4.1.2Specialisation & Trade

4.2

International Business

4.2.1Internationalisation 4.2.2International Trade 4.2.3MNCS 4.2.4Conditions that Prompt Trade 4.2.5Assessment of a Country

4.3

International Economic Environment

4.3.1Globalisation 4.3.2Factors Contributing to Globalisation 4.3.3Protectionism 4.3.4The EU & the WTO 4.3.5Trading Blocs

4.4

Factors Affecting International Business

4.4.1Global Competitiveness 4.4.2Ethics of Global Business 4.4.3Controlling MNCs 4.4.4Cultural & Social Factors in Marketing

5

Principles of Management

5.1

Management & Leadership

5.1.1Managers 5.1.2Management Theories 5.1.3Managing Organisational Culture 5.1.4Management Style

5.2

Theories of Motivation

5.2.1Motivating & Engaging Employees 5.2.2Taylor's Theory 5.2.3Mayo's Theory 5.2.4Maslow's Theory 5.2.5Herzberg's Theory

5.3

Managing Change

5.3.1Change 5.3.2Key Factors in Change 5.3.3Scenario Planning 5.3.4Managing Change 5.3.5Managing Strategic Implementation

6

Business Decision Making

6.1

Business Principles & Practices

6.1.1Influences in External Environments 6.1.2Product Decisions 6.1.3Competitive Environment 6.1.4Corporate Strategy 6.1.5Quantitative Sales Forecasting 6.1.6Legislation

6.2

Quality Management

6.2.1Importance of Quality 6.2.2Measuring Quality 6.2.3Total Quality Management 6.2.4Evaluating TQM

6.3

Human Resources

6.3.1Contracts 6.3.2Recruitment 6.3.3Training a Workforce

6.4

Documents & Business Decisions

6.4.1Sales Forecasts 6.4.2Managing Strategic Implementation 6.4.3Problems with Strategy

Jump to other topics

1

Exploring Business

2

Marketing Campaigns

2.1

Marketing

2.1.1Setting Marketing Objectives 2.1.2Customer Needs 2.1.3The Market 2.1.4Competition & The Market 2.1.5Consumer Behaviour 2.1.6Market Research 2.1.7Forms of Market Research 2.1.8Market Segmentation 2.1.9Cultural & Social Factors in Marketing 2.1.10Promotional Decisions 3 2.1.11Pricing Strategies

2.2

Marketing Mix

2.2.1Marketing Mix 2.2.2Product Life Cycle 2.2.3Pricing Decisions & Price Skimming 2.2.4Pricing Decisions & Price Penetration 2.2.5Promotional Decisions 2.2.6Promotional Decisions 2 2.2.7Promotional Decisions 3 2.2.8Market Mapping

3

Business Finance

3.1

Sources of Finance

3.1.1Internal Finance 3.1.2External Finance 3.1.3External Finance 2 3.1.4Sources of Business Finance

3.2

Financial Planning

3.2.1Revenue 3.2.2Costs 3.2.3Cash & Cash Flow 3.2.4Cash & Cash Flow 2 3.2.5Break-Even Analysis 3.2.6Profits

3.3

Financial Statements

3.3.1Balance Sheets 3.3.2Income Statements 3.3.3Liquidity

4

International Business

4.1

Globalisation

4.1.1Growing Economies 4.1.2Specialisation & Trade

4.2

International Business

4.2.1Internationalisation 4.2.2International Trade 4.2.3MNCS 4.2.4Conditions that Prompt Trade 4.2.5Assessment of a Country

4.3

International Economic Environment

4.3.1Globalisation 4.3.2Factors Contributing to Globalisation 4.3.3Protectionism 4.3.4The EU & the WTO 4.3.5Trading Blocs

4.4

Factors Affecting International Business

4.4.1Global Competitiveness 4.4.2Ethics of Global Business 4.4.3Controlling MNCs 4.4.4Cultural & Social Factors in Marketing

5

Principles of Management

5.1

Management & Leadership

5.1.1Managers 5.1.2Management Theories 5.1.3Managing Organisational Culture 5.1.4Management Style

5.2

Theories of Motivation

5.2.1Motivating & Engaging Employees 5.2.2Taylor's Theory 5.2.3Mayo's Theory 5.2.4Maslow's Theory 5.2.5Herzberg's Theory

5.3

Managing Change

5.3.1Change 5.3.2Key Factors in Change 5.3.3Scenario Planning 5.3.4Managing Change 5.3.5Managing Strategic Implementation

6

Business Decision Making

6.1

Business Principles & Practices

6.1.1Influences in External Environments 6.1.2Product Decisions 6.1.3Competitive Environment 6.1.4Corporate Strategy 6.1.5Quantitative Sales Forecasting 6.1.6Legislation

6.2

Quality Management

6.2.1Importance of Quality 6.2.2Measuring Quality 6.2.3Total Quality Management 6.2.4Evaluating TQM

6.3

Human Resources

6.3.1Contracts 6.3.2Recruitment 6.3.3Training a Workforce

6.4

Documents & Business Decisions

6.4.1Sales Forecasts 6.4.2Managing Strategic Implementation 6.4.3Problems with Strategy

Practice questions on Measuring Quality

Can you answer these? Test yourself with free interactive practice on Seneca — used by over 10 million students.

1
What can companies use to measure quality from customers?Fill in the list
2
Airbnb ask people who stay in properties listed on the website to rate them afterwards. What is this an example of?Multiple choice
3
How do companies measure quality?True / false
4
Primarily, why do companies sometimes ask customers to complete detailed feedback questionnaires?Multiple choice
5
Which of the following is not a benefit of quality checking in production?Multiple choice

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Importance of Quality

Total Quality Management