Because of the fierce competition in many businesses, there is an ongoing tension between price, quality, and profitability. When quality is foregone in favor of price and profitability, it may result in the arrival of dangerous and unhealthy goods on the shelves of the retailer.
What are a few consequences of disregarding quality in favor of cost and profitability?
- Thread starter Shavkat
- Start date
Humans are rational beings and the primary driver of purchasing decisions is price. That's why there is a concept called purchasing power.
It may help the business to make a profit in a short term. But customers are smart, when they find out your products are not durable and reliable, they will not come back to buy and they will spread the news. The reputation of your business will be seriously affected.
If the quality of the product is not good, unhealthy, even dangerous, it will be abandoned by consumers, even though the price is cheap. Many consumers are willing to pay more, as long as it is of good quality, healthy, and does not endanger health. Most consumers don't care how much the company's profit is because it's none of their business, what they expect is a good quality product at an affordable price.
My friend bought a used car at a ridiculously cheap price. We told him to buy a brand new car instead. The amount he spent on repairing faults in that car over a one year period was enough to get a new car.
