Quality is important to businesses but can be quite hard to define. A good definition of quality is:

"Quality is about meeting the needs and expectations of customers"

Customers want quality that is appropriate to the price that they are prepared to pay and the level of competition in the market.

Key aspects of quality for the customer include:

  • Good design – looks and style
  • Good functionality – it does the job well
  • Reliable – acceptable level of breakdowns or failure
  • Consistency
  • Durable – lasts as long as it should
  • Good after sales service
  • Value for money

'Value for money' is especially important, because in most markets there is room for products of different overall levels of quality, and the customer must be satisfied that the price fairly reflects the quality.

Some products and services are marketed as 'basic', having none of the extra features and benefits of more expensive alternatives. Good examples would be Easyjet and George at Asda clothing ranges. Even though it may be 'low quality' in terms of style or features, these products still give good value for money for their overall level of quality.

For the firm, good design is fundamental, so that the product can be produced efficiently, reliably and at the lowest possible cost.

Quality helps determine a firm's success in a number of ways:

  • Customer loyalty – they return, make repeat purchases and recommend the product or service to others.
  • Strong brand reputation for quality
  • Retailers want to stock the product
  • As the product is perceived to be better value for money, it may command a premium price and will become more price inelastic
  • Fewer returns and replacements lead to reduced costs
  • Attracting and retaining good staff

These points can each help support the marketing function in a business. However, firms have to work hard to maintain and improve their reputation for quality, which can easily be damaged by a news story about a quality failure.

Featured
Exam coaching workshops

AQA BUSS4 Exam Coaching & Revision Workshops

Join Jim Riley and the tutor2u BUSS4 team for an intensive day designed to prepare students for the challenges of BUSS4 in June 2015. Each of the five workshop sessions introduces and builds effective essay planning and writing technique. We do this in the context of looking at both Manufacturing in the UK (Section A) and core topics for Section B including leadership, change management, technology, strategic choice and globalisation.

Learn more ›

You might also like

Reference material

Study notes

Quality Assurance

Study notes

Quality Control

Study notes

Quality - Measurement

Teaching & learning products

Edexcel GCSE Business Studies Unit 3 Worked Answers (2013-2014)

Fully worked A Grade answers to recent Edexcel GCSE Business Studies Unit 3 exam papers with detailed examiner commentary on how good technique scores top marks

£5.00

AQA GCSE Business Studies Worked Answers - Unit 1 (2013-2014)

Worked A Grade answers to recent AQA GCSE Business Studies Unit 1 exam papers together with detailed examiner commentary

£5.00