Determining Factors of Product Sales and Profit

0 Comment

Product quality and production flow are also factors that affect sales and profit. They have various ways through which they affect sales and profit (Shaharudin, Mansor, Hassan, Omar Harun, 2011, p. 8163. Shetty Buehler, 1991, p. 8). The extent, through which product quality and production flow can increase sales and profit, can only be shown by explaining the effect of these two factors on sales and profit. How improving these factors can lead to increased sales and profit, will clearly be produced in the explanations given about their effects. The essay is, therefore, divided into two main sections: The effects of product quality on sales and profit, and the effect of productive flow-on sales and profit. These will show the relationship between product quality and production flow to sales and profit hence. help in understanding how improving the two factors can lead to increased sales and profit. The main element that brings value to a customer in the market offering is the product. A product is more than a tangible object. It includes performance quality, service features, brand name, design, and packaging. The quality of a product is very important since it affects the product performance and so is connected to customer satisfaction and value (Shaharudin, Mansor, Hassan, Omar Harun, 2011, p. 8164). Consumers of today seek high-quality products. The only problem is different perceptions held by customers about quality. Any company interested in selling its products should conduct thorough market research, depending on the type of product they have, to determine what their consumers perceive as high quality. Consumers in the United States, for example, rank quality based on the reliability of a product, durability, easy maintenance, ease of use, brand name and the price. This is specifically on motor cycle products (Shaharudin, Mansor, Hassan, Omar Harun, 2011, p. 8164). Improving the quality of a product, therefore, increases the sales of a product. Sales depend on customer satisfaction and value, and product quality is one way of satisfying the customer and offering something of value depending on the customer. The extent to which product quality affects sales is great. This is because, for goods to be sold, customers have to want, need or prefer them. Preference is most common where there are a variety of products with different features, prices, brand names, quality and so on. Product quality is a determining factor in preference for a product, so affects sales. Customer satisfaction and value is vast. There are different customers with different tastes, needs, and economic capability. All these determine the preference hence the intent to purchase a product (Shaharudin, Mansor, Hassan, Omar Harun, 2011, p. 8164). Product quality is the totality of a product or service characteristics that give the product or service the ability to satisfy given needs. If a product fulfills a customer’s expectations, the customer becomes satisfied and begins to build loyalty. Loyalty is developed through trust and a positive relationship with the customer. Customer loyalty retains customers and contributes to the number of sales made in a given period of time. This clearly indicates one of the various ways through which product quality affects sales. Increasing sales requires retaining of customers and attracting new ones.