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- Title
Product Quality, Cost Position and Business Performance: A Test of Some Key Hypotheses.
- Authors
Phillips, Lynn W.; Chang, Dae R.; Buzzell, Robert D.
- Abstract
This study uses a causal modeling methodology to examine competing methodological and theoretical hypotheses concerning the effects of product quality on direct costs and business unit return on investment (ROI). Results show that the PIMS' measures under study exhibit high reliability across all samples. The findings fail to support the widely held view that a high relative quality position is incompatible with achieving a low relative cost position in an industry.
- Subjects
UNITED States; PRODUCT quality; CONSUMER protection; RATE of return; COST accounting; STRATEGIC business units; MARKETING strategy; MARGINAL pricing; PRODUCT differentiation; MARKETING literature; CUSTOMER services; DIRECT costing
- Publication
Journal of Marketing, 1983, Vol 47, Issue 2, p26
- ISSN
0022-2429
- Publication type
Article
- DOI
10.1177/002224298304700204