Importance of Quality

High quality product means:

• the product will never go wrong

• customers will always be able to re-use the product

• the product meets customers' high expectations

• the product is made from the highest quality materials

Which one of the following is NOT a benefit to a firm from producing quality products?

• customers' loyalty is likely to be high

• all customers will not be prepared to pay very high prices

• customers will tell other people about the products

• the costs of returns and product failures is likely to be low

Which one of the following statements about quality is true?

• quality is an issue only for manufacturers

• low priced products are always low quality

• tertiary sector businesses should assess the quality of their products

• the quality of services offered by a bank cannot be measured

Quality control in a factory is usually achieved by:

• testing all completed products

• testing a sample of completed products

• asking customers to check quality

• testing materials as they arrive at the factory but not the finished product

Which one of the following is NOT a disadvantage of quality control?

• expensive to pay employees to check the products

• doesn't find why the fault occurred

• some faulty products may be discovered

• increased costs if faulty products are scrapped

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