2.3.2 Working with Suppliers

Question 1

Quality

Answer 1

it meets the needs & expectations of the customer.

Question 2

How to judge quality (7)

Answer 2

Design (looks, style, features)
Functionality (does the job well)
Reliability (acceptable level of breakdowns or failure)
Consistency (products meet the same quality standards time and time again)
Durable (lasts as long as it should)
Good after sales service (ease of gaining refunds, guarantees, warranties)
Price/value for money (the price reflects the quality of the product)

Question 3

Consequences of quality issues (6)

Answer 3

Loss of customers (as customers are dissatisfied with the product and therefore will not return)
Reputation of the business goes down (difficult to attract new customers)
Costs of recalling, scrapping or re-working/re-making (products that are faulty or not up to the required standard)
Costs of replacements or refunds
Costs of reducing the price of products that no-one wishes to buy (these products may not generate a profit)
Legal action might be taken against the business

Question 4

Business benefits of greater quality (5)

Answer 4

Customer satisfaction
Repeat purchase
Customer recommendation
Lower marketing costs
Higher customer loyalty