Quality Flashcards

All 9 cards in this deck

What do customers expect from the quality of a service?

That it is delivered to a good standard and reliably, for example a hotel room that is clean and ready at the promised time.

Give two consequences for a business of producing poor quality goods.

Any two of: customer complaints and returned products; refunds or replacements; lost repeat customers and sales; damage to the business's reputation.

What is a product recall?

When a business asks customers to return a faulty or unsafe product. It must pay for refunds, repairs or replacements, and its reputation suffers.

Give one advantage to a business of producing a high quality product.

Quality is a source of differentiation, attracting more customers and increasing market share. (Also: it allows higher prices and so a higher profit margin.)

Why does managing quality help a business control its costs?

Mistakes in production are expensive, so fewer faults means less wastage and fewer costs of replacing or repairing faulty goods.

What does 'quality' mean in business?

Producing goods or providing services that are fit for purpose and meet the standard customers reasonably expect.

Give three reasons why quality is important to a business.

It protects the business's reputation, helps it gain and retain customers, and reduces product returns and recalls.

Can a cheap product be good quality?

Yes. Quality means meeting customers' expectations, so a low-priced product is good quality if it works as customers expect for that price.

Why is it worth spending money on quality to keep existing customers?

Winning new customers through marketing costs much more than keeping existing ones, and poor quality quickly loses them.