Why do we purchase products|services? Quality & Value

When people purchase a product/service, they actually look for a specific utility or benefit from it. However, they sacrifice some of their resources, such as the time and effort to look for it, the money paid for its price, and the effort to learn how to use and benefit from it. Thus, if the product/service satisfies this need or utility, then we can say that the product has high quality. Otherwise, there is a problem in the quality of the product/service. The concept of quality is extremely important in all managerial and organizational functions & tasks, but it started as part of the controlling function by inspecting final products for quality and defects. It is stated as one the topics of part 6 (Controlling) in Management 2015 Book, the 1st book in your channel: Management with Merits – Manage to Prosper. We have already started discussing this part and function (Controlling) in the last video. Thus, in this video, we finish the rest of this part. Furthermore, the book has been introduced before in a previous video. We have also discussed parts 1 to 5 of it. To download the presentation associated with this video in PDF, as well as access the videos of all sessions and discussions related to the book, kindly go to the links below:

- Previous video (Controlling):





- Associated PDF Presentation:




- Book’s Introductory Video:




- Playlist of all videos discussing book’s parts and chapters:





Quality is defined by the book as the ability of a product or service to reliably do what is supposed to do and to satisfy customer’s expectations. Thus, if you purchase a product or service, expecting that it will satisfy a specific need for you because it states that it does so, then the product/service must fulfill this promise to be of high quality. Quality problems cost companies huge amount of losses and degrade their reputation and customer’s loyalty.



Depending on the above, if the product/service has high quality, then it will be definitely of value to the customer because it satisfies the customer’s needs & wants. Thus, products/services must be of value to customers, which is defined by the book as the performance, characteristics, features, and attributes, and any other aspects of goods and services for which customers are willing to give up resources. Thus, any product/service must be of high quality in order to provide “value” for the customer. In order to provide such value, companies care about carefully managing their value chains, which is simply all the processes, procedures and tasks undertaken by the company during all the steps required to produce the final product/service from the raw materials, up to handing the final product/service to the customer. Thus, all these steps must actually add value to the product/service, which means that performing them must enhance the utility or value that the customer is looking for from this product/service. Otherwise, any step or task will be simply “waste”.



Successful companies tend to build quality and value in all of their operations. Thus, the aspects of quality and value are strongly related to “Operations Management”, which is the process of managing the transformation of the inputs and resources (financial, human, capital, time, intellectual…) to final products and services effectively and efficiently. Operations Management will be discussed in details when we take one of the channel’s books, that is: “Operations Management”, by Reid & Sanders, (4th Edition) published by Wiley in 2011, U.S.A.


That was our session for today. By this lesson, we have successfully finished the first book in the channel in its 1st year (Management 2015) book. Next session, we will start discussing the 2nd book in the channel’s first year, which is “Entrepreneurship – Successfully Launching New Ventures - 2012”. It is a great American book that we have introduced before in a previous video (below link).





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• Note: The source of the picture in the Thumbnail:

Total Quality Management,Value Chain Management,Customer Gain & Sacrifice,Operations Management,