Quality Uncertainty and Perception

Quality Uncertainty and Perception

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It has been observed that the studies of quality are pursued in various disciplines like economics, quality management, and marketing science, and are seen isolated. The treatments imparted to these studies are also different and has the backdrop of discipline in which the work has been pursued. The nature of isolation is equally seen when quality uncertainty and perceived quality were pursued separately without showing any inkling that these can be complimentary. Economist and Nobel Laureate, Akerlof (1970), wrote a seminal piece a€œThe market for lemons: quality uncertainty and market mechanisma€, where he described quality uncertainty due to information asymmetry. It refers to the fact that a party in a transaction may have more information than the other. This is information asymmetry. If the seller has more information than the buyer about the product quality, he/she may sell it, as if it is a high-quality product. In reality, it could be a low-quality product. The buyer does not have the information regarding the quality of the offered product. The market condition that led to this transaction is quality uncertainty due to information asymmetry.A few definitions of quality are given below: a€œQuality consists of the capacity to satisfy wants.a€ (C.D. Edwards, a€œThe Meaning of Quality, a€ in Quality Progress, Oct. 1968) a€œQuality is fitness for use. ... a€œQuality is a customer determination based upon a customera#39;s actual experience with a product or service, measured against hisanbsp;...

Title:Quality Uncertainty and Perception
Author:Lalit Wankhade, Balaji Dabade
Publisher:Springer Science & Business Media - 2010-06-16


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