Title

Product Quality, Cost Position, and Business Performance: A Test of Some Key Hypotheses

Publication Type

Journal Article

Publication Date

1-1983

Abstract

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.

Discipline

Marketing

Research Areas

Marketing

Publication

Journal of Marketing

Volume

47

Issue

2

First Page

26

Last Page

43

ISSN

0022-2442

Identifier

http://www.jstor.org/stable/1251491