4.3.2

Measuring Quality

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Measuring Quality

How a company measures quality depends on the product or service. Different products will have different things that are important to measure. For a car, a company may randomly test the engines to make sure they have the correct horsepower. To measure quality, companies 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 afterwards.
- 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.

1

Understanding Business Activity

1.1

Business Activity

1.1.1Purpose of Business Activity 1.1.2Customer Needs 1.1.3Why are Businesses Set Up?1.1.4Specialisation & Division of Labour

1.2

Classification of Businesses

1.2.1The 3 Sectors of Economic Activity 1.2.2Public & Private Sector

1.3

Enterprise, Business Growth & Size

1.4

Types of Business Organisation

1.4.1Sole Traders 1.4.2Partnerships 1.4.3Limited Companies 1.4.4Private Limited Companies 1.4.5Public Limited Companies 1.4.6Unlimited vs Limited Liability 1.4.7Not For Profit 1.4.8Franchising 1.4.9End of Topic Test - Business Ownership 1.4.10Application Questions - Business Ownership 1.4.11Diagnostic Misconceptions - Company vs Business

1.5

Business Objectives & Stakeholder Objectives

1.5.1The Main Stakeholders in a Business 1.5.2The Impact & Influence of Stakeholders on Business 1.5.3Diagnostic Misconceptions - Profit 1.5.4Diagnostic Misconceptions - Owners vs Shareholders

2

People in Business

2.1

Human Resource Management (HRM)

2.1.1Contracts of Employment 2.1.2Recruitment 2.1.3Benefits of an Effective Recruitment Process 2.1.4Reducing the Workforce 2.1.5Legal Controls Over Employment 2.1.6Training 2.1.7End of Topic Test - The Workforce 2.1.8Application Questions - The Workforce 2.1.9Diagnostic Misconceptions - Recruitment

2.2

Organisation & Management

2.2.1Internal Organisational Structures 2.2.2Business Functions & Definitions 2.2.3Centralised vs. Decentralised Structures 2.2.4Tall & Flat Organisations 2.2.5The Impact of Organisational Structure on Managing 2.2.6Leadership Styles 2.2.7Trade Unions 2.2.8End of Topic Test - Org Structure

2.3

Methods of Communication

2.3.1Communication in Businesses

2.4

Motivating Employees

2.4.1Motivation in the Workplace 2.4.2Financial Methods of Motivation 2.4.3Non-Financial Methods of Motivation 2.4.4Diagnostic Misconceptions - Money

3

Marketing

3.1

Marketing & the Market

3.1.1Customer Needs 3.1.2Identifying and Satisfying Customer Needs 3.1.3The Market 3.1.4The Market-Driven Approach 3.1.5Competition 3.1.6The Impact of High Competition 3.1.7Diagnostic Misconceptions - Competition 3.1.8Market Segmentation 3.1.9Methods of Market Segmentation

3.2

Market Research

3.2.1Market Research 3.2.2Qualitative & Quantitative Research 3.2.3Primary Market Research 3.2.4Secondary Market Research 3.2.5Analyse Market Research Data 3.2.6Application Questions - Marketing 3.2.7End of Topic Test - Marketing

3.3

Marketing Mix

3.3.1The Product Life Cycle 3.3.2Product Design 3.3.3Product Portfolio & The Boston Matrix 3.3.4Benefits & Risks of New Products 3.3.5Extension Strategies 3.3.6Price 3.3.7Pricing - Skimming & Penetration 3.3.8Competitive and Cost-Plus Pricing 3.3.9Market Mapping - Price vs Quality 3.3.10Place 3.3.11Manufacturer-Wholesalers-Retailers-Customers 3.3.12Manufacturer-Retailers-Customers 3.3.13Direct to Customers 3.3.14Promotional Methods 3.3.15Reasons for Promotion 3.3.16Advertising 3.3.17Advertisement - Product Placement 3.3.18Public Relations 3.3.19Sales Promotion 3.3.20Sponsorship 3.3.21Social Media 3.3.22Promotional Mix 3.3.23E-Commerce and M-Commerce 3.3.24Benefits & Drawbacks of E-Commerce and M-Commerce 3.3.25End of Topic Test - Marketing Mix 3.3.26Grade 9 - Marketing Mix 3.3.27Diagnostic Misconceptions - Decreasing Price 3.3.28Diagnostic Misconceptions - Advertise vs Promote 3.3.29Diagnostic Misconceptions - Social Media 3.3.30Marketing Strategy 3.3.31Entering Foreign Markets

3.4

Legal Controls

3.4.1Legal Controls on Marketing

4

Operations Management

4.1

Production of Goods & Services

4.1.1Production Processes Overview 4.1.2Job Production 4.1.3Flow Production 4.1.4Batch Production 4.1.5Production Efficiency - Lean Production 4.1.6Managing Stock - Just in Time 4.1.7Technology & Production 4.1.8Factors of Production 4.1.9Diagnostic Misconceptions - JIT vs JIC

4.2

Cost, Scale of Production & Break-Even Analysis

4.2.1Costs 4.2.2Costs - Calculations 4.2.3Economies of Scale 4.2.4Diseconomies of Scale 4.2.5Break-Even Analysis 4.2.6Profits and Losses - Calculations 4.2.7Diagnostic Misconceptions - Fixed Costs 4.2.8Diagnostic Misconceptions - Economies of Scale 4.2.9Diagnostic Misconceptions - Break-Even

4.3

Achieving Quality Production

4.3.1Importance of Quality 4.3.2Measuring Quality 4.3.3Quality control 4.3.4Total Quality Management 4.3.5Benefits of Maintaining High Product/Service Qual.4.3.6Costs of Maintaining High Quality/Service 4.3.7End of Topic Test - Operational Decisions

4.4

Location Decisions

4.4.1Business Location 4.4.2Nature of Business Activity

5

Financial Information & Decisions

6

External Influences on Business Activity

6.1

Economic Issues

6.1.1Business Cycle 6.1.2Objectives of Government Economic Policy 6.1.3Provision of Public Services 6.1.4Taxation & Constraints on Public Spending 6.1.5The Government & Business Activity 6.1.6Interest Rates 6.1.7Interest Rates - Calculations 6.1.8Diagnostic Misconceptions - Recession

6.2

Business & the International Economy

6.2.1Multinational Companies 6.2.2Exchange Rates

6.3

Business & the Environment

6.3.1Globalisation 6.3.2Environmental Issues 6.3.3Business and Sustainability

6.4

Business & Ethical Issues

6.4.1Ethical Considerations for Businesses 6.4.2Benefits of Being Ethical

6.5

Pressure Groups

6.5.1Pressure Groups

Jump to other topics

1

Understanding Business Activity

1.1

Business Activity

1.1.1Purpose of Business Activity 1.1.2Customer Needs 1.1.3Why are Businesses Set Up?1.1.4Specialisation & Division of Labour

1.2

Classification of Businesses

1.2.1The 3 Sectors of Economic Activity 1.2.2Public & Private Sector

1.3

Enterprise, Business Growth & Size

1.4

Types of Business Organisation

1.4.1Sole Traders 1.4.2Partnerships 1.4.3Limited Companies 1.4.4Private Limited Companies 1.4.5Public Limited Companies 1.4.6Unlimited vs Limited Liability 1.4.7Not For Profit 1.4.8Franchising 1.4.9End of Topic Test - Business Ownership 1.4.10Application Questions - Business Ownership 1.4.11Diagnostic Misconceptions - Company vs Business

1.5

Business Objectives & Stakeholder Objectives

1.5.1The Main Stakeholders in a Business 1.5.2The Impact & Influence of Stakeholders on Business 1.5.3Diagnostic Misconceptions - Profit 1.5.4Diagnostic Misconceptions - Owners vs Shareholders

2

People in Business

2.1

Human Resource Management (HRM)

2.1.1Contracts of Employment 2.1.2Recruitment 2.1.3Benefits of an Effective Recruitment Process 2.1.4Reducing the Workforce 2.1.5Legal Controls Over Employment 2.1.6Training 2.1.7End of Topic Test - The Workforce 2.1.8Application Questions - The Workforce 2.1.9Diagnostic Misconceptions - Recruitment

2.2

Organisation & Management

2.2.1Internal Organisational Structures 2.2.2Business Functions & Definitions 2.2.3Centralised vs. Decentralised Structures 2.2.4Tall & Flat Organisations 2.2.5The Impact of Organisational Structure on Managing 2.2.6Leadership Styles 2.2.7Trade Unions 2.2.8End of Topic Test - Org Structure

2.3

Methods of Communication

2.3.1Communication in Businesses

2.4

Motivating Employees

2.4.1Motivation in the Workplace 2.4.2Financial Methods of Motivation 2.4.3Non-Financial Methods of Motivation 2.4.4Diagnostic Misconceptions - Money

3

Marketing

3.1

Marketing & the Market

3.1.1Customer Needs 3.1.2Identifying and Satisfying Customer Needs 3.1.3The Market 3.1.4The Market-Driven Approach 3.1.5Competition 3.1.6The Impact of High Competition 3.1.7Diagnostic Misconceptions - Competition 3.1.8Market Segmentation 3.1.9Methods of Market Segmentation

3.2

Market Research

3.2.1Market Research 3.2.2Qualitative & Quantitative Research 3.2.3Primary Market Research 3.2.4Secondary Market Research 3.2.5Analyse Market Research Data 3.2.6Application Questions - Marketing 3.2.7End of Topic Test - Marketing

3.3

Marketing Mix

3.3.1The Product Life Cycle 3.3.2Product Design 3.3.3Product Portfolio & The Boston Matrix 3.3.4Benefits & Risks of New Products 3.3.5Extension Strategies 3.3.6Price 3.3.7Pricing - Skimming & Penetration 3.3.8Competitive and Cost-Plus Pricing 3.3.9Market Mapping - Price vs Quality 3.3.10Place 3.3.11Manufacturer-Wholesalers-Retailers-Customers 3.3.12Manufacturer-Retailers-Customers 3.3.13Direct to Customers 3.3.14Promotional Methods 3.3.15Reasons for Promotion 3.3.16Advertising 3.3.17Advertisement - Product Placement 3.3.18Public Relations 3.3.19Sales Promotion 3.3.20Sponsorship 3.3.21Social Media 3.3.22Promotional Mix 3.3.23E-Commerce and M-Commerce 3.3.24Benefits & Drawbacks of E-Commerce and M-Commerce 3.3.25End of Topic Test - Marketing Mix 3.3.26Grade 9 - Marketing Mix 3.3.27Diagnostic Misconceptions - Decreasing Price 3.3.28Diagnostic Misconceptions - Advertise vs Promote 3.3.29Diagnostic Misconceptions - Social Media 3.3.30Marketing Strategy 3.3.31Entering Foreign Markets

3.4

Legal Controls

3.4.1Legal Controls on Marketing

4

Operations Management

4.1

Production of Goods & Services

4.1.1Production Processes Overview 4.1.2Job Production 4.1.3Flow Production 4.1.4Batch Production 4.1.5Production Efficiency - Lean Production 4.1.6Managing Stock - Just in Time 4.1.7Technology & Production 4.1.8Factors of Production 4.1.9Diagnostic Misconceptions - JIT vs JIC

4.2

Cost, Scale of Production & Break-Even Analysis

4.2.1Costs 4.2.2Costs - Calculations 4.2.3Economies of Scale 4.2.4Diseconomies of Scale 4.2.5Break-Even Analysis 4.2.6Profits and Losses - Calculations 4.2.7Diagnostic Misconceptions - Fixed Costs 4.2.8Diagnostic Misconceptions - Economies of Scale 4.2.9Diagnostic Misconceptions - Break-Even

4.3

Achieving Quality Production

4.3.1Importance of Quality 4.3.2Measuring Quality 4.3.3Quality control 4.3.4Total Quality Management 4.3.5Benefits of Maintaining High Product/Service Qual.4.3.6Costs of Maintaining High Quality/Service 4.3.7End of Topic Test - Operational Decisions

4.4

Location Decisions

4.4.1Business Location 4.4.2Nature of Business Activity

5

Financial Information & Decisions

6

External Influences on Business Activity

6.1

Economic Issues

6.1.1Business Cycle 6.1.2Objectives of Government Economic Policy 6.1.3Provision of Public Services 6.1.4Taxation & Constraints on Public Spending 6.1.5The Government & Business Activity 6.1.6Interest Rates 6.1.7Interest Rates - Calculations 6.1.8Diagnostic Misconceptions - Recession

6.2

Business & the International Economy

6.2.1Multinational Companies 6.2.2Exchange Rates

6.3

Business & the Environment

6.3.1Globalisation 6.3.2Environmental Issues 6.3.3Business and Sustainability

6.4

Business & Ethical Issues

6.4.1Ethical Considerations for Businesses 6.4.2Benefits of Being Ethical

6.5

Pressure Groups

6.5.1Pressure Groups

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
Why do companies sometimes ask customers to complete detailed feedback questionnaires?Multiple choice
5
Imagine you run a cafe that has recently introduced a new coffee blend. How can you best use customer feedback to improve the quality of your coffee?Multiple choice

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Importance of Quality

Quality control