Benefits of Maintaining High Product/Service Qual.
Business: Cambridge International GCSE (2027 Exams), topic 4.3.5
Benefits of Maintaining High Product/Service Quality
High quality can lead to additional sales. If firms compete on quality (as well as price) then keeping quality high could increase a firm’s sales. They may attract more new customers and existing customers may be more satisfied and buy the product again.
Image/reputation
- When customers are satisfied with a product’s quality, they view the business and the brand as being a high quality brand.
- This positive reputation can win more customers and let the company charge a higher price.
Higher price
- Having a high quality product means that a business is able to charge customers more for the product.
- Customers are often willing to pay a premium for a good product. Consumers pay a lot of money for Apple products like the MacBook laptop computer and the iPhone because they are perceived as very high quality.
- Being able to charge a higher price means a firm is able to earn more profit (providing the costs of TQM aren’t too much).
Avoid product recalls
- If a business has a high quality product, it is unlikely to have to recall it for quality or safety issues, like Volkswagen did with their cars in 2015.
Test yourself on Benefits of Maintaining High Product/Service Qual.
What are the benefits of maintaining high product/service quality?
Apple products like the MacBook laptop computer and the iPhone are perceived as very high quality. Why is this good for business?