Product Quality and Demand >> PRODUCT QUALITY AND DEMAND
"Product quality" refers to the characteristics and attributes of a product that determine its ability to meet customer expectations and perform its intended function, while "demand" signifies the quantity of a product consumers are willing and able to buy at a given price; essentially, a high-quality product is often directly linked to higher demand as consumers are more likely to choose and purchase items they perceive as reliable and valuable.
Key points about product quality and demand:
Positive correlation:
Generally, higher product quality leads to increased demand, as customers are more likely to be satisfied and repeat purchases with a reliable product.
Brand reputation:
Consistently delivering high quality builds a strong brand reputation, which further enhances customer loyalty and demand.
Price premium:
Companies offering high-quality products can often charge a premium price due to the perceived value by consumers.
Customer perception:
Quality is not just about the product itself, but also about how customers perceive its quality, which can be influenced by factors like packaging, branding, and customer service.
Negative impact of low quality:
Conversely, poor product quality can lead to decreased demand, customer complaints, and damage to brand reputation.
Factors influencing product quality and demand:
