Dynamics of Quality Perception

Part of the Contributions to Management Science book series (MANAGEMENT SC.)


This chapter provides framework, modeling, and analysis for quality perception by using system dynamics (SD). The role of the changing level of market-side enablers on quality perception is observed. To realize the impact of information asymmetry on quality perception, simulation runs are carried out for an Indian case. Enablers, such as advertising, word-of-mouth, rebate, warranty and guarantee, mitigate the effect of information asymmetry on quality perception and commensurately translate TQM to market value. Similarly, the position of high quality products (HQPs) is focused in SD modeling and analysis. Also, an attempt is made to unfold the prevailing parametric relationships in the market of developed and developing nations. Simulation runs are carried out to assess the impact of company reputation and advertising on market parameters. From using correlation analysis and analytic hierarchy approach, the policy measures to improve the HQP position in the market are revealed. The SD model has a practical relevance to implement quality perception enhancement by deciding on the policy mix.


Information Asymmetry Quality Perception Market Dynamic Market Niche Parametric Relationship 


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Copyright information

© Springer-Verlag Berlin Heidelberg 2010

Authors and Affiliations

  1. 1.SGGS Institute of Engineering & Technology Dept. Production EngineeringNandedIndia

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