Why Is Product Quality Sometimes Poorly Defined in a Firm

question 8

Multiple Choice

Why is product quality sometimes poorly defined in a firm?

• A)Managers do not know how to measure customer service.
• B)Holistic measures of quality are difficult to develop.
• C)Managers in different functional areas tend to emphasize different dimensions of quality.
• D)Both B and C are correct.

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Definitions:

Demand

The willingness and ability of consumers to purchase goods or services at various prices at a given time.

Industry

A collection of businesses and companies that produce similar goods or offer similar services within an economic sector.

Invisible Hand

A metaphor coined by Adam Smith to describe how individuals pursuing their self-interest unwittingly contribute to the economic prosperity of society.

Market System

An economic approach wherein the processes of investment, manufacturing, and goods distribution are directed by supply-demand correlation, with a system that freely sets the prices of goods and services.