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

Author

Lynn W. Phillips, Stanford University
Dae Ryun CHANG, Singapore Management UniversityFollow
Robert D. Buzzell, Harvard University

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

10.2307/1251491

Citation

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.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/2922

Additional URL

https://doi.org/10.2307/1251491