Quality of goods and services - OCRThe concept of quality

Quality is concerned with how well a product performs, or the standard to which a service is provided. This will depend upon what customers expect, which means that quality can be very subjective.

If a product or service is of good quality, it generally means that it is of a high standard. Quality can come from how well a product is made, the use of high-quality raw materials, and ensuring that products will last a long time and work well, eg a watch should tell the time correctly.

Price is often used as an indicator of quality. Generally, customers who are willing to pay more for a product will expect the quality of it to be higher. Some customers will be willing to accept a lower quality product if it is cheaper.

Businesses need to understand what their customers want, and meet customers’ needs and expectations in relation to the quality of a product or service.

Businesses can use quality to gain a competitive advantage by developing a business culture where employees are motivated and care about their customers, the product and/or service, and the business’ reputation.