1. Why quality matters to a business
A quality product is one that is not faulty or defective when it is sold. Quality matters to all businesses, because it affects both their sales and their costs.
A business with good quality gains a better reputation and brand image. Customers stay loyal and buy again, which raises sales and market share. The business also has less rework and fewer returns, so it wastes less.
Quality also gives a business a competitive advantage and lets it charge higher prices. A good answer explains the effect on the business, not on the customer.
Examiner insight
Worked example 14 marks
Identify four reasons why quality might be important for a business.
- 1
Knowledge: better reputation / brand image, or good reviews [1]
- 2
Knowledge: customer loyalty, so customers will buy again [1]
- 3
Knowledge: higher sales, revenue or market share [1]
- 4
Knowledge: less rework, fewer returns or less wastage [1]