Customer Reaction to Product Quality--论文代写范文

在产品选择上，服务和维护变得越来越重要。在快速变化的技术中,产品往往是更复杂的。顾客对新产品的性能通常是不确定的。下面的paper代写范文进一步论述。

Abstract 
  After a product is manufactured, its finished quality will have impact on revenue and additional cost incurred to the manufacturing firm. When the product breaks down or needs a replacement, the service and/or the part cost is charged to the manufacturer: the higher the product quality, the less likely the chance of it breaking down or being defective. High quality products will also create reputation or ‘customer goodwill,’ which leads to high demand and potentially high revenue, and vice versa.

 Warranty Cost 
  In the purchase decision of a product, buyers usually compare characteristics of products of competing brands. However, in modern manufacturing, the business is characterized by continually changing technology, global markets, nearly identical products due to similar technologies and common components, and well informed customers. (Murthy and Djamaludin 2002) It is, therefore, increasingly difficult to make decisions on the best product. In this case, post-sale factors such as warranty, parts availability and cost, and service and maintenance are becoming more important in product choice. Additionally, with rapidly changing technology, later generation products tend to be more complex than the ones they replace. Customers are often uncertain about new product performance. As such, warranty will play a significant role in giving customers insurance they need to purchase the products.

  Firms will need to consider warranty as part of a post-sale service strategy, since it can incur additional cost beyond that of the product development and manufacturing. Warranty cost typically ranges from 2% to 15% of net sales. (McGuire 1980) As a result, warranty cost has a significant impact on the manufacturing business. According the a literature review by Murthy (2002), there has been a vast body of literature on the topic of warranty cost modeling. Murthy divides the bulk of literature into two types of modeling methods: one-dimensional and two-dimensional policy—a one-dimensional policy cover one characteristic of the product such as age, while a two-dimensional policy covers two characteristics such as age and the amount of usage—although he mentions that one-dimensional policy models receive much more attention. The models are constructed to analyze product engineering quality feedback and optimal warranty policies. In this dissertation, in order to assess the total effect the decisions in product development and manufacturing ramp-up have on profitability of the firm, warranty cost will be taken into consideration.

 Reputation 
  Economists have become aware of how imperfect information can cause several characteristics of market imperfections. (Shapiro 1982) While much effort has been spent on understanding the effect of uncertainty about various prices at which a product is offered (Salop and Stiglitz 1977; Wilde and Schwartz 1979), it is relatively minor and unimportant in comparison to uncertainty about product characteristics. (Shapiro 1983) Uncertainty about quality is a widespread and important feature of markets for most firms’ goods. On some products, especially consumer durables, it is virtually impossible for customers to assess the quality before purchase. Customers, therefore, relies on reputation as a signal for product quality.(paper代写)

  Market behavior and product quality interact via the notion of reputation. According to Akerlof (1970), if product quality is given exogenously, with price offered only dependent on the average product quality throughout the market and high quality items are more expensive to produce, the market will eventually be flooded with minimal quality products if customers never learn about the reputation of each firm. Since there is no profit in ‘doing more than necessary,’ firms whose products are of lower quality will make the most profit as it does not have bad reputation, while high quality firms will be forced out of business. In reality, there exists an incentive for a firm to make high quality products. High quality product release can improve the reputation of the firm. Products that come from the firm with high reputation are generally believed to be of high quality, and therefore can be sold at higher quantity or higher price. The firm must be able to correctly weigh the cost and benefit of making high quality product. While there exist a considerable amount of published papers on topic of reputation, as reviewed by Weigelt and Camerer (1988), most deal with reputation in corporate strategic decisions and economic signaling game. Only a small part of them deal with the mathematical representation of reputation. Out of these, only a few discuss the relationship between product quality, reputation, and demand. This relationship is crucial in determining the benefit and cost of manufacturing high quality product.(paper代写)

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