Product Quality, Cost Position, and Business Performance: A Test of Some Key Hypotheses
This study uses a causal modelling methodology to examine competing methodological and theo- retical hypotheses concerning the effects of prod- uct quality on direct costs and business unit re- turn on investment (ROI). Results show that the PIMS' measures under study exhibit high reliabil- ity across all samples. The findings fail to support the widely held view that a high relative quality position is incompatible with achieving a low rel- ative cost position in an industry.
Journal of Marketing
Phillips, Lynn W.; CHANG, Dae Ryun; and Buzzell, Robert D..
Product Quality, Cost Position, and Business Performance: A Test of Some Key Hypotheses. (1983). Journal of Marketing. 47, (2), 26-43. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/2922