Identify a true statement about the role of quality in gaining a competitive advantage.
A) Quality is unrelated to return on investment for most kinds of market situations.
B) A strategy of quality improvement is usually accompanied by increased short-run profitability.
C) Producers of high-quality goods usually charge low prices.
D) Businesses offering premium-quality goods usually have large market shares.

Question

Quizplus · Accepted Answer

Businesses offering premium-quality goods can command larger market shares because consumers often associate higher quality with greater value, leading to increased customer loyalty and a willingness to pay premium prices. This can differentiate a business from its competitors, providing a competitive advantage.

Identify a True Statement About the Role of Quality in Gaining