Competition
Quality has become one of the most competitive points in business
today. Ford, BMW, General Motors, and Honda, for example, each implies that its cars
and trucks are higher in quality than the cars and trucks of the others. And American,
Delta, and United Airlines each claims that it provides the best and most reliable service.
In the wake of the economic recession that started in 2008, many businesses focused
even more attention on service quality as a competitive advantage during lean times.
While some firms, for example, cut their staff at customer call centers, others did not.
What impact might this have? One study found that cutting four representatives at a
call center of three dozen people sent the number of customers put on hold for four
minutes from 0 to 80. Firms with especially strong reputations for service quality include
Amazon.com, USAA (an insurance firm), Lexus, Ritz-Carlton, Ace Hardware, and
Apple.
20
Productivity
Managers have also come to recognize that quality and productivity are
related. In the past, many managers thought that they could increase output (productiv-
ity) only by decreasing quality. Managers today have learned the hard way that such an
These eight dimen-
sions generally cap-
ture the meaning of
quality, which is a
critically important
ingredient to organi-
zational success
today. Understanding
the basic meaning of
quality is a good first
step to managing it
more effectively.
Table 15.2
Eight Dimensions of Quality
1. Performance. A product’s primary operating characteristic; examples are
automobile acceleration and a television’s picture clarity.
2. Features. Supplements to a product’s basic functioning characteristics, such
as power windows on a car.
3. Reliability. A probability of not malfunctioning during a specified period.
4. Conformance. The degree to which a product’s design and operating charac-
teristics meet established standards.
5. Durability. A measure of product life.
6. Serviceability. The speed and ease of repair.
7. Aesthetics. How a product looks, feels, tastes, and smells.
8. Perceived quality. As seen by a customer.
Source: Reprinted by permission of Harvard Business Review. Exhibit from “Competing on the
Eight Dimensions of Quality,” by David A. Garvin, November/December 1987. © 1987 by the
Harvard Business School Publishing Corporation; all rights reserved.
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