Defining Quality:Alternatives and Implications
S-72.2530 Acceptability and Quality of Services20.11.2008Jani Nieminen
Carol A. Reeves and David A. Bednar
Source: The Academy of Management Review, Vol. 19, No. 3, Special Issue: ”Total Quality” (July 1994), pp. 419-445
Agenda
•No universal definition of quality for products and services!
•Relation to course topic:▫Assessment requires definition
•Analysis of different definitions and trade-offs in accepting one over another▫Strengths▫Weaknesses
•Quality implications in the marketplaceDefining Quality: Alternatives and Implications (1994) by C.A. Reeves, D.A. Bednar
DefinitionsQuality is Excellence
Quality is Value
Quality is Conformance to Specifications
Quality is Meeting and/or Exceeding Customers’ Expectations
ISO Definition:“The totality of features and characteristics of a
product or service that bear on its ability to satisfy stated or implied needs.” (from ISO 8402:1994)
Defining Quality: Alternatives and Implications (1994) by C.A. Reeves, D.A. Bednar
ExcellenceStrengths Weaknesses
• Easy to market• Motivates workforce• Universal
▫ Uncompromising▫ High achievement
• Subjective ▫ Little practical guidance
• Difficult to measure• May change to regular• May increase cost and
price
Quality is...
Defining Quality: Alternatives and Implications (1994) by C.A. Reeves, D.A. Bednar
ValueStrengths Weaknesses
• Multiple attributes▫ Excellence, price,
durability• Focuses attention on both
▫ Internal efficiency▫ External effectiveness
• Allows comparisons between varying products or services
• Difficult to identify individual components
• Quality ≠ Value▫ Quality < Value?▫ Quality > Value?
Quality is...
Defining Quality: Alternatives and Implications (1994) by C.A. Reeves, D.A. Bednar
Conformance to specificationsStrengths Weaknesses
• Precisely measurable• Leads to efficiency• Necessity for global
strategy• Specifications should
come from customer needs
• Most appropriate for industrial customers
• Specifications vs. Subjective perception of Quality
• Inappropriate for services• May reduce adaptability• Needs may expire
Quality is...
Defining Quality: Alternatives and Implications (1994) by C.A. Reeves, D.A. Bednar
Meeting and/or Exceeding Customers’ ExpectationsStrengths Weaknesses
• Customers’ perspective• Applicable across
industries• Responsive to market
changes• All-encompassing
▫ Multiple attributes▫ Differentiation
• Most complex▫ Different customers
have different preferences
• Difficult to measure▫ Customers may not
identify expectations• Pre-purchase attitudes• Short-term vs. Long-term
▫ Satisfaction vs. Service
Quality is...
Defining Quality: Alternatives and Implications (1994) by C.A. Reeves, D.A. Bednar
ISO Definition of Quality
•Compares characteristics to requirements•Results in a degree of Quality•Relation to definitions in this article:
▫Conformance to Specifications▫Meeting/Exceeding Expectations -> Value
•Quality is always relative to needs
“The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.”
(ISO 8402:1994 Quality management and quality assurance Vocabulary)
Defining Quality: Alternatives and Implications (1994) by C.A. Reeves, D.A. Bednar
Implications
•Conflicting empirical findings concerning▫Price▫Market share▫Cost
•Quality influenced by▫Organizational output▫Time▫Different customers
Defining Quality: Alternatives and Implications (1994) by C.A. Reeves, D.A. Bednar
Quality and Price
•Positive relationship in marketing literature▫Defined as excellence
•Value or Conformance to specifications▫Should lead to lower prices
•Meeting and/or exceeding expectations▫Price/quality relationship defined by
expectations
Defining Quality: Alternatives and Implications (1994) by C.A. Reeves, D.A. Bednar
Quality and Market Share
•Positively related when quality is based on manager assessments
•When defined as the degree of excellence, opposite results
•If specifications or expectations are well defined, may lead to positive relationship
Defining Quality: Alternatives and Implications (1994) by C.A. Reeves, D.A. Bednar
Quality and Cost
•Conformance to specifications▫Inverse relationship
•Excellence increases cost•Value or Meeting/Exceeding expectations
▫Demands, desires, requirements define cost
Defining Quality: Alternatives and Implications (1994) by C.A. Reeves, D.A. Bednar
Quality and Organizational Output•Definition suitable for output?
Quality and Time•Expectations change -> measurement
timing!Quality and Different Customers•Whose definition of quality is most
important?
Defining Quality: Alternatives and Implications (1994) by C.A. Reeves, D.A. Bednar
Conclusion
•Quality compared to competitors•Multiple definitions may be required•Understanding of quality often requires
simplifying the definition▫May facilitate measuring
•Future challenge in quality definition:▫Comparable definitions▫Multiple components
Defining Quality: Alternatives and Implications (1994) by C.A. Reeves, D.A. Bednar
Critique
•Suggests combination of definitions, yet does not deliver any
•Weaknesses result from narrow definition•Suggestion (modified from ISO Definition):
▫Specifications derived from users’ Expectations
▫Conformance leads to Excellence▫Excellence exceeds Expectations
results in satisfaction and Value for user QUALITY
Defining Quality: Alternatives and Implications (1994) by C.A. Reeves, D.A. Bednar
