• Definition: Quality refers to the standard or level of excellence of a product or service.

Real-world example: A Rolex watch is considered high-quality because of its precision, craftsmanship, and durability.

• Historical Fact: The quality revolution began in Japan around 1945.
• Key Person: W. Edwards Deming, an American management theorist, played a pivotal role in this movement. He introduced influential ideas about producing top-notch products.

Real-world example: Toyota, a Japanese company, is known for its quality production techniques that have been influenced by Deming's principles.

• Increased Sales: Quality products often have a higher demand.
• Repeat Customers: Customers remain loyal to brands that deliver consistent quality (Brand Loyalty).
• Reduced Costs: Quality reduces after-sales complaints and returns.
• Premium Pricing: Quality products can command higher prices.

Real-world example: Apple's iPhones are priced at a premium, yet customers repeatedly buy them because they perceive the quality and value of the product.

• It’s not always about actual quality. Sometimes, it’s about perceived quality.
• If consumers think a product is top-notch, they'll buy it.

Real-world example: Many people believe that "the best" business schools guarantee success. But sometimes rankings are based on perceptions rather than the real quality of education!