Which of the following statements about the impact of high product quality on competitive advantage is true?
A) It decreases the utility of the products.
B) It lowers unit costs of the products and allows room for product differentiation.
C) It adversely affects employee productivity.
D) It limits the company's ability to differentiate its products.
E) It increases the need for after-sales services.

Question

Quizplus · Accepted Answer

High product quality can lower unit costs through improved manufacturing efficiency and reduce the costs associated with product defects, repairs or warranty claims. This allows room for product differentiation, which in turn leads to competitive advantage. Therefore, option B is the correct statement. The other statements, including the ones implying negative effects, are incorrect.

Which of the Following Statements About the Impact of High