*Questions are from Management of Business For CAPE Examinations by Jerome Pitterson

Total 25 marks

1. a. Discuss the following dimensions of quality, making specific reference to the

purchase of a cellular phone:

i. Performance

ii. Reliability

iii. Serviceability

iv. Perceived quality

v. Features

(15 marks)

i. Performance

This aspect refers to if the product can execute its primary function, in other words, can it do what it is supposed to do. For example with a cellphone, the main purpose is to make and receive calls. If it cannot do this basic functionality it is not a cellphone and would not fulfil this dimension. In most cases, this is the whole point of purchasing the product, thus this is a very important dimension of quality.

ii. Reliability

This is closely related to performance, and entails how likely the product is to fail during a particular period. In other words, it ensures the product performs the basic functionality and the features work as they should. In this instance, the phone should be able to make and receive calls whether outside of one’s home or in it. There shouldn’t be any other factors such as WIFI that prevents this. It also should be able to perform this function in the time period guaranteed. Some phones specify a certain camera quality or the speediness of text messages. This dimension ensures that is true and if not, then the cell phone wouldn’t be reliable.

iii. Serviceability

Serviceability refers to if the product is relatively easy to maintain and repair, how long such processes take and the ease of accessing this service along with its quality. Upon buying a cellphone, consumers need to know if anything should happen, they can easily repair the particular part of the phone, for example if the screen cracked. They also need to know if the manufacturer/distributor has good quality service repairs so it takes the minimum time to fix and they won’t have future problems after the service is rendered. When one spends their hard earned money on a cellphone, they need some reassurance that if anything should happen, it can be fixed and won’t go to waste.

iv. Perceived quality

This dimension entails the consumer’s first thoughts/impressions of the product. Normally they have very limited information about the product, in this case the cellphone. Thus, they will use various intangible or tangible factors to infer what the cellphone is like. For example the brand of cellphone; usually people gravitate towards large brands such as Apple or Samsung, they tend to ignore all else. They may even use the advertisement to make an informed decision which is why it's important to carefully plan any promotional strategies, for example using well known celebrities. This dimension is very subjective and different for each person, thus it's the hardest to fulfil as what interests one market may turn away another. Consumers tend to look at the back of the phone, how big it is, as a few of their determinants when looking for such a product.

v. Features

This is again, closely tied to performance, it enhances the basic functions of the product. In terms of a cell phone that may include: camera and quality, SMS, storage, screen size and so on. These are taken into account when purchasing a phone and it's important that whatever feature the manufacturer claims the phone has, is actually present and in the manner advertised. For example, if the phone is said to have 128GB, the customer cannot see only 64GB. Aside from performance, it is really the features which determine a customers choice of phone, as all phones have the basic functionality, the features differ in quality and type, thus what sets for example, an iPhone apart from a Huawei.

b. Define the term ‘outsourcing’ and outline two (2) advantages and two (2) disadvantages of using this method to improve quality. (10 marks)

Outsourcing is the practice of obtaining goods and services form companies or individuals outside the business. It is the practice of assigning certain duties to an external company or individual rather than them working internally. This could be used for a stage of production that cannot be done by the company itself. For example, a business needs a marketing video, but doesnt have a video editor; they may hire/ outsource a video editor from another company to complete the job. An advantage of outsourcing is the availability of specialized labour. Outsourcing allows the business to partner with skilled workers or a company specializing in a certain area; this ensures that the quality of the product is good. For example, the company will hire a IT specialist to help with the company’s cyber security. Another advantage is that outsourcing can be cost-effective. It removes the need for costly employee training, hiring and maintaining specialized workers while still ensuring high quality output. Even though outsourcing can be beneficial for the company, there are still some disadvantages that may affect the quality of the product. One disadvantage is the lack of direct control. Since the company does not participate in the production of some of its products, maintaining quality may be more challenging.This is especially possible where proper quality standards are not in place. Another disadvantage is that it is a potential source of conflict. Poor communication due to differences in workplace etc can cause misunderstanding among workers. This may result in conflict which can lead to defects in production, hence the product quality not improving.