- INFORMATION TABLE.JPG (11.44 KiB) Viewed 148 times
Possible KN Points:
• Good reputation / brand image
• Attract new customers
• Meet legal controls
• More competitive
• Create brand / customer loyalty
• Can charge a higher price
• sales might fall
09 Identify and explain two possible reasons why quality is important to DCP. [6]
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09 Identify and explain two possible reasons why quality is important to DCP. [6]
DCP makes a range of high quality industrial paints. It sells direct to 6 large business customers which are located in different countries. DCP charges a price of $0.35 per litre. It operates in a competitive market. The Operations manager has been looking at DCP's costs as shown below. He wants to increase profit but he does not want to buy cheaper materials.
09 Identify and explain two possible reasons why quality is important to DCP. [6]
Possible KN Points:
• Good reputation / brand image
• Attract new customers
• Meet legal controls
• More competitive
• Create brand / customer loyalty
• Can charge a higher price
• sales might fall
Possible KN Points:
• Good reputation / brand image
• Attract new customers
• Meet legal controls
• More competitive
• Create brand / customer loyalty
• Can charge a higher price
• sales might fall