
Last month I pointed to a column by Scott Dalgleish on the vagueness of quality claims. In this Month’s Quality Magazine, he brings a basic product/marketing question of quality.
Probing the Limits: Taking the Quality High Ground – Column – Quality:
“I’m currently designing a line of product for my business and I’m facing some fundamental quality questions. Do I develop a high-quality product or a cheaper low-quality product? This isn’t an easy question.
My inclination as a quality professional is to develop a high-quality product without even thinking about it, but that could be a foolish approach. As I drive past discount stores with packed parking lots, I quickly realize how much consumers love low prices.”
The basic 101 lesson:
Reading this article reminded me my MBA economics classes, which I really enjoyed because of the order it creates with such complex questions. It all is based on the supply and demand curves that intersect. Here is a good review of supply and demand with interactive curves. Scott also realizes that price, cost, and quality are not also always dependent on each other.
The 600 level case study:
Right now most of us are dealing with existing products, or new products similar to others, so that we can make some assessments of the market, at least in an educated gut/Blink-style. Scott’s problem is that there is no existing supply or demand curve for his new product. While he decides that market testing will help him decide, he also acknowledges that his final decision will be the one he can live with.
The column sums up with this subhead: “Feeling good about making a high-quality product can be just as important as being profitable.” Agree or disagree?
A B2B marketing blog by an honest-to-goodness marketing manager for an industrial manufacturer.