Competing on Quality: When Less is More

Discipline: Information Technology
Date: 5/2006

Author(s): John Sempel, Chester Chambers

Executive Summary:

Competing on Quality: When Less is More

Virtually every firm touts the quality of its product, and almost every annual report or product brochure sees a bright future because of the “quality” of the company’s offerings. But is it really safe to say that higher quality leads to greater profits? Common sense says it’s not that simple. SMU Cox faculty members Chester Chambers and John Semple have conducted new research that answers this deceptively complex question. They developed a new model that includes quality-based competition, product pricing, and production costs to gain new insights into this age-old problem.  

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