Quality will always matter to customers-so it should be a high priority for every manager. This is true for both manufacturing operations as well as services, Defining quality from the customer's perspective, however, is very difficult as it can mean different things to different people: This is one of the major challenges facing managerial today, At the same time, the level of quality being provided in the goods and services being sold today continues to increase, due in part to a combination of increased global competition and an increased knowledge of customers. Service quality is especially difficult to manage, for a variety of reasons. Unlike product quality, service quality is often highly subjective, varying from customer to customer even under identical circumstances. As a result, good service quality to one customer may be viewed as poor service quality by another. The reason that quality is difficult to define is that it is
a very broad concept that encompasses many dimensions, which vary for both goods and services. Good managers will identify those quality dimensions that are most important to their customers. Another reason managers should be concerned with. quality is that quality and cost are closely related. There are significant costs associated with producing bad products. Similarly there are costs related to providing poor service to customers. Bad quality results in dissatisfied customers who eventually take their business elsewhere.
Thus, high quality in goods and services is essential to maintain customer loyalty and long-term customer relationships, which has been shown to significantly increase
profits. With the growth in global competition, the markets for goods and services has shifted from being a producers' major where customers are at the mercy of the firms that
are providing the goods and services, to being a. consumers market, where customers have a wide variety of sources from which to by the goods and services they desire. This trend is expected to only increase as more and more consumers purchase goods and services on the Internet from literally any corner of the world. In such a highly competitive environment, managers are acknowledging the importance of customer loyalty, and recognize .