The Role of Marketing in Understanding and Controlling Cost of Quality

• In Event: Breakfast with Research Roundtable Forum Session
  In Paper Session: Management Accounting Roundtable

Abstract

Quality is an increasingly important element in planning, production, distribution and marketing of goods and services because of global competition and other external factors in many industries. However, the cost of quality must also be considered as not to add unwanted or unwarranted costs to pass along to the end consumer. Marketing professionals are trained to strategically build and protect their own brand of products or services.
The four categories of Quality Costs (Prevention, Appraisal, Internal Failure and External Failure) encompass many different quality activities at different stages in producing goods or services. The research and experiences in the marketing industry will help to show that most quality initiatives are in fact preventative when the end goal is maintaining a solid consumer base and satisfied customers. As this study shows, many of those activities can be enhanced with the support of an internal marketing department or an external marketing agency.

Authors

• Mehmet C Kocakulah, University of Wisconsin La Crosse

• Sergey Komissarov, University of Wisconsin-La Crosse