Importance of control of quality
It is important for the retailer to control the quality of retailing. Quality has emerged as one of the important competitive component of service company strategies. There is a crusade for quality management and improvement within industry worldwide.
1. Quality enhancement has linkages to market share and profitability: Even before the expansion of manufacturing industries into the service industry, the campaign for improved quality took place. Managements adopt consistent approaches such as concentrating on the control of costs and employees.
2. Creating differential advantage: Companies need to find new ways of creating differential advantage by providing better service levels than their competitors. As services and goods are available from a wide range of channels, retail competition has increased. To withstand stiff competition in the consumer market, manufacturers create technically satisfactory goods which require little after sales service.
3. Growing sophistication of consumer markets: The present day consumer market is characterized by growing sophistication. Retailers concentrate on non-price factors of image, retail offer positioning and service delivery processes.
4. Increased levels of consumerism: Consumers are aware of their rights under the Consumer Protection Act, 1986. If they suffer any loss or injury due to deficiency of service or defective goods, they can approach consumer forum for redressal of the complaints. Quality enhancement is the key for retailers to avoid consumer grievances.
5. Consumer convenience: Technology is applied to enhance consumer convenience in the retail environment. Retailers can improve their services by providing higher levels of convenience. For example, automatic vending, ticketing machines, bar code check out systems etc. These devices improve accuracy and speed of transactions.
6. Benefits of quality improvement: The benefits of quality enhancement take a vicious circle. Increased volume, reduced costs, increased margins, higher quality and greater pricing latitude, increase a value or increased usage and repeat loyalty are the direct outcome of quality improvement.
The above image illustrates the model indicating that quality improvement leads to an improved trading position.