Question

Marketing Research and Information:

What is meant by return on quality? Why do you think that the concept evolved? Give an example.

Answer 1

Return on Quality: It can be defined as measuring the quality improvement expenditure in terms of the financial investments made. The concept of various Quality Management Techniques such as TQM has been adopted by a large number of organizations worldwide then it became very important for the companies to see if their efforts to maintain the quality are worthwhile. Thus the steps for measuring the Return on Quality involved assessing the customer expectations, then producing a quality output which meets or exceeds the customer expectations and then documenting these returns with the input of time, money and efforts.