According to several research studies, which of the following findings is true of the role of quality in gaining competitive advantage
A) Quality is negatively related to return on investment for almost all kinds of market situations.
B) A strategy of quality improvement is usually accompanied by increased short-run profitability.
C) Quality has a trivial effect on returns in most kinds of market situations.
D) Businesses offering premium-quality goods usually have large market shares.

Question

Quizplus · Accepted Answer

Quality is a significant factor in gaining a competitive advantage. Businesses that offer premium-quality goods often secure larger market shares because consumers tend to prefer higher-quality products, even if they come at a higher price. This preference can lead to increased customer loyalty and a stronger brand reputation, which are crucial for maintaining and expanding market share.

According to Several Research Studies, Which of the Following Findings