Components of Quality
1. Product feature shave a major effect on sales income ( through market share premium prices etc) . in many industries the total external customer population can be segmented by the level or grade of quality desired. Thus the spectrum of customers leads to a demand for luxury hotels and budget hotels to a demand for refrigerators with many special features as well as for those with basic cooling capabilities. Product features refers to the quality of design. In increasing the quality of the design generally leads to higher costs.
2. Freedom from deficiencies has a major effect on costs through reduction in scrap rework complaints and other results of deficiencies. Deficiencies are stated in different units for example errors, defects failures off specification. Freedom from deficiencies refers to quality of conformance. Increasing the quality of conformance usually results in lower costs. in addition higher conformance means fewer complaints and therefore increased customers satisfaction.