PRODUCT AND SERVICE QUALITY: Satisfaction will also depend on product and service quality. What exactly is quality?
Various experts have defined it as ”fitness for use,” ”conformance of requirements,” and ”freedom form variation,” We will use the American Society for Quality’s definition: Quality is the totality of feature and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
This is clearly a customer-centered definition. We can say the seller has delivered quality whenever its product or service meets or exceeds’ exceptions.
A company that satisfies most of its customers’ need most of the time is called a high-quality company, but we need to distinguish between conformance quality and performance quality ( or grade).
A Lexus provides higher performance quality then Hyundai: The Lexus ride more smoothly, accelerates faster, and runs problem-free longer.
Yet both a Lexus and a Hyundai deliver the same conformance quality if all the units deliver their promised quality.
IMPACT OF QUALITY Product and service quality, customer satisfaction, and company profitability are intimately connected.
Higher levels of quality result in higher levels of customer satisfaction, which support higher prices and (often) lower costs. Studies have shown a high collaboration between relative product quality and company profitability.
The drive to produce goods that a superior in world markets has led some countries to recognize or award prizes to companies that exemplify the best quality practices. such as the Deming Prize in japan, the Malcolm Baldrige National Quality Award in the United States, and the European Quality Award.
Companies that have lower-es costs to cut corners have paid the price when the quality of the customer experience suffer.
British Airways also encountered turbulence when it becomes overly focused on cost cutting.