Customer Perception of Quality

CUSTOMER PERCEPTION OF QUALITY
According to Deming, “Quality may be defined as an excellent product or services that fulfills or exceeds our
expectations”. An American Society for Quality (ASQ) survey on end user perceptions of important factors that
influenced purchases showed the following ranking:
1. Performance
2. Features
3. Service
4. Warranty
5. Price
6. Reputation
The above factors are the part of product and service quality; therefore it is evident that product quality and service
are more important than price.
Performance- involves “fitness for use” – a phrase that indicates that the product and service is ready for the
customer‟s use at the time of sale.
1. Availability- probability that a product will operate when needed.

2. Reliability- freedom from failure over time
3. Maintainability- ease of keeping the product operable.
Features- Identifiable features or attributes of a product or service are psychological, time- oriented, contractual,
ethical, and technological. Features are secondary characteristics of a product or service.
Service- An emphasis on customer service is emerging as a method for organizations to give customer- added value.
However is an intangible- it is made up of many small things, all geared to changing the customer‟s perception.
Providing excellent customer service is different from and more difficult to achieve than excellent product quality.
Warranty- The product warranty represents an organization‟s public promise of a quality product backed up by a
guarantee of customer satisfaction. Warranty builds marketing muscle as it encourages customer to buy a service by
reducing the risk of the purchase decision, and it generates more sales fro/m existing customer by enhancing loyalty.
Price- Today‟s customer is willing to pay a higher price to obtain value. Customer constantly evaluating one
organization‟s products and services against those of its competitors to determine who provides the greatest value.
Reputation- Today customer satisfaction is based on the entire experience with the organization, not just the
product. Good experiences are repeated to six people and bad experiences are repeated to 15 people; therefore it is
more difficult to create a favorable reputation. Customers are willing to pay a premium for a known or trusted brand
name and often become customers for life.
TRANSLATING NEEDS INTO REQUIREMNTS

Translating needs into requirements is another vital part of the quality management. Requirements management is
concerned with meeting the needs of end users through identifying and specifying what they need.
Requirements may be focused on outcomes where the main concern is to describe what is wanted rather than how it
should be delivered or requirements may be described in any way between have an adequate understanding of what
the users need and how the market is likely to meet that need.
COST OF QUALITY
Cost of Quality is the amount of money a business loses because its product or service was not done right in the right
place (or) the cost associated in providing poor quality product and services is known as Cost of Quality (or) Cost of
Quality are defined as those costs associated with the non-achievement of product or service quality as defined by
requirements established by the organization and its contracts with customers and society.
The four categories of Quality cost includes
Internal failure cost- The cost associated with defects that are found prior to transfer of the product to the customer.
External failure cost- The cost associated with defects that are found after product is shipped to the customer.
Appraisal cost- The cost incurred in determining the degree of conformance to quality requirement.
Prevention cost- The cost incurred in keeping failure and appraisal costs to a minimum.
The companies estimate quality costs for the following reasons:

To improve communication between middle managers and upper managers
To identify major opportunities for cost reduction
To identify the opportunities for reducing customer dissatisfaction and associated threats to product salability.

Customer Perception of Quality

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CUSTOMER PERCEPTION OF QUALITY

1. Availability- probability that a product will operate when needed.

TRANSLATING NEEDS INTO REQUIREMNTS

The companies estimate quality costs for the following reasons:

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