return on quality

Examples of return on quality in the following topics:

• Product Quality

  • The Mercedes-Benz SLR McLaren is a high quality car.
  • When discussing quality one must consider design, production, and service.
  • Return on quality (ROQ) - an approach that evaluates the financial return of investments in quality
  • Successful management of quality requires that managers have insights on various aspects of quality.
  • Without ease of use, companies may lose customers, face sales returns, or legal problems from product injuries.

• Quality

  • Consumers place a value on quality; therefore high quality products may be able to win share and/or command a price premium.
  • Product quality can vary depending on perception and is considered somewhat subjective since it may be understood differently by different people.
  • Consumers may focus on product features and how well the product compares to competing brands in the marketplace.
  • Product qualities can be divided into two main categories:
  • These standards were established to produce better products on a consistent basis, while focusing on production, conformance, and quality control mechanisms.

• Perishability

  • Perishability of services implies that service capacity cannot be stored, saved, returned, or resold once rendered to a customer.
  • An empty seat on a plane never can be utilized and charged after departure.
  • Services cannot be stored, saved, returned, or resold once they have been used.
  • An empty seat on a plane never can be utilized and charged after departure.
  • As demand fluctuates, it can be very difficult to maintain quality service.

• Delivering Excellent Service Quality

  • The core task of a business is to ensure that customers come back, which can be done by delivering excellent service quality.
  • Examples of excellence in service quality include personalized service, good return policies, complaints desks and hotlines, being able to speak to a human being when calling for service, and so on.
  • Examples of excellence in service quality include personalized service, good return policies, complaints desks and hotlines, being able to speak to a human being when calling for service, and so on.
  • Before being handed the standard menu, the owner recommends a dish that is based on the current availability of the freshest ingredients, careful to avoid the customers' dislikes, and with a good sense of what the customers might prefer on that day, given the time of year, and given the weather.
  • They will call them to get feedback on their experiences.

• Stages of Business Buying

  • conduct vendor analysis - a formal and systematic evaluation of current and potential vendors; focuses on price, quality, delivery service, availability and overall reliability
  • An organization can decide to use one supplier, called sole sourcing.
  • Buying one can of soft drink involves little money, and thus little risk.
  • Purchasing the wrong product or service, the wrong quantity, the wrong quality or agreeing to unfavourable payment terms may put an entire business at risk.
  • Less risky investments yield less returns.

• Production Orientation

  • Production orientation follows the premise that any product of high quality can be readily sold.
  • However, until the 1950s, organizations relied on the assumption that their businesses would be profitable so long as they produced high quality products that were durable and worked well.
  • During the Industrial Age of the 18th and 19th centuries, production-oriented companies thrived due to both the scarcity and high demand for mass-produced, high quality goods and services.
  • Industrial firms focused on production orientation models that exploited economies of scale to reach maximum efficiency at the lowest cost.
  • Technological - taking advantage of returns to scale in the production function

• Return on Investment

  • Return on investment is one way of considering profits in relation to the capital invested.
  • The purpose of the return on investment metric is to measure per period rates of return on dollars invested in an economic entity.
  • Return on investment is often compared to expected (or required) rates of return on dollars invested.
  • This chart shows the rate of return on investments after training teachers.
  • Explain why pricing objectives focus on delivering a return on investment (ROI)

• Product Orientation

  • A firm employing a product orientation is chiefly concerned with the quality of its product.
  • Similar to production orientation, the product orientation of marketing focuses solely on the product a company intends to sell.
  • Under the product orientation, management focuses on developing high quality products which can be sold at the right price, but with insufficient attention to what it is that customers really need and want.
  • Consumers choose between different products based on getting the best quality for the price paid.
  • Companies adopting a product orientation of marketing focus on product quality and therefore emphasize research and development.

• Customer Feedback

  • Service quality generally refers to a customer's comparison of service expectations as it relates to a company's performance.
  • A business with a high level of service quality is likely capable of meeting customer needs while also remaining economically competitive in their respective industry.
  • Questionnaires:Distribute one-page questionnaires that ask some key questions and encourage customers to fill them out.
  • In-person focus groups and one-on-one interviews are helpful tools that provide explanation of product or consumer-related issues because you are going to the main source directly .
  • This has been shown to be useful, as it allows companies to improve their customer service before the customer defects, thus making it far more likely that the customer will return next time.

• Rebates

  • A rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed.
  • A rebate is an amount paid, by way of reduction, return, or refund on what has already been paid or contributed.
  • Rebates are arguably more effective selling tools than sales or instant discounts because with rebates consumers pay the full price for the product up front and associate the higher price product as one of greater quality.
  • It's a good way to get customers to take a chance on a new brand. "
  • Chances of rebate mailing being lost or failing some criteria may further reduce the expected return on this effort.