Quality Expectations

Definition: 

The consumer preferences regarding quality can change. If existing operational systems are producing an item of a quality no longer desired, this will force the business to alter its operational processes to improve quality (or reduce!).

Service firm example: If it has become the norm in the physiotherapy market to wait only 10 minutes after an appointment time or get a refund, this will force less efficient physiotherapy firms to improve their operations to retain customers (see Process marketing strategy).

Manufacturing firm example: If a rival toy business has released imitation Lego, but customers dislike the styles and functionality of the cheaper alternative, it must make adaptations to close the ‘quality gap’ (better material inputs, machines…)

Consumers have pre-existing ideas about quality for product categories; the totality of features and characteristics of products and services to satisfy stated of implied needs. This must be based on research.

These can involve quality of design, fitness for purpose, durability (tangible goods) and professionalism, effectiveness, efficiency and degree of customisation (intangible services).  If output meets expectations: satisfaction, repeat sales, positive brand reputation. If not: dissatisfaction, loss of sales and profitability.

How it can influence operations:

• Alter supply chain (cost of goods sold may increase, squeezing margins)

• Use improved technology (capital expenditure)

• Alter product concept (and operational processes)

• Remove item from production (if costs to adapt are too high)

• Employ better staff (rewards to attract and retain the best)