“What is quality?” asked the teacher.
“Quality makes a product good. It means a product was built well and designed well.”
“Can you tell a quality product from a non-quality product?”
“I think so.”
“Quality does consist of good workmanship. But it also consists of good marketing and perception. Quality, like value, is in the minds of customers. The 22 Laws of Branding, on page 57, asks some interesting questions.
Does a Leica take better pictures than a Pentax? Are you sure?
Does a Montblanc pen write better than a Cross? Are you sure?
Quality is in the minds of your customers.”
“How do you place the concept of quality into your customers’ minds?” asked the student.
“Think Law #2 – The Law of Contraction. When you refine your area of specialty you become more knowledgeable and appear more knowledgeable about your product. For example, if your store only sells coffee, you know more about coffee and your coffees have the perception of a higher quality than the store down the street that sells coffee, soda, juices, donuts, muffins, breakfast sandwiches and so on. A bookstore that sells only mysteries takes on the perception of the “go-to” store for mysteries and questions about mystery authors than the general bookstore down the street.”
“It makes sense.” replied the student.
“Price is also a factor. If it cost more it must be better. A $50 glass of wine must be better than a $5 glass of wine.”
“So you give the perception of quality when you make your products more expensive than the competition.”
“Partially true. There is also the factor of credibility. If you manufacture inexpensive products and gain the reputation of being the low-end of the market, raising prices will not help you. For example, Yugo will never be able to sell a luxury, high quality car. People have to believe that your company makes quality products.”
“Are they stuck in the low-end market for life?”
“A new brand name is their key to a new market. Yugo is synonymous with inexpensive cars. That is their word in the minds of automobile buyers. A new brand name not associated with Yugo could allow them to market a luxury car.
To review, incorporate Think Law #2 – The Law of Contraction, a unique brand name, and a high price (plus a good product) provides the perception of quality.”