Does product quality guarantee the success of a business? Various factors are analyzed to examine whether or not a good quality product by itself can propel a business into success.
A product of good quality can be defined as one that best satisfies the consumer’s needs at the price they are willing to pay. While it is integral to business success, it is certainly not the only factor that guarantees it, simply because businesses function as an integrated whole, and the success of only one part does not guarantee success of the entire organization.
Business success can be referred to as an achievement of common objectives such as profitability, growth, or increasing market share. A good quality product undeniably brings positive contributions to the success of a business. One benefit is customer satisfaction. Once they are satisfied with the product, the customer will be likely to make repeat purchases, and over time develop a strong loyalty towards the brand. When the business has a reputation for producing good quality products with a strong customer base, it establishes itself in a strong position in the market, giving it the opportunity to increase its market share. As a result, retailers would be more willing to stock their products, giving the business more options in terms of the channel of distribution, and thus giving them a competitive advantage. This can also lead to marketing economies of scale, whereby a cross marketing of brands can be used to strongly promote different products simultaneously because an overall positive brand image has been created. Another cost saving is that fewer complaints will need to be dealt with, and because of this, fewer repairs and wastage costs will be incurred. These savings of average costs could then be kept as retained profits, or invested in business growth, proving beneficial to business success. Read more in Business
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