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09 Identify and explain two possible reasons why quality is important to DCP. [6]

Posted: Fri Feb 13, 2026 3:37 pm
by BASEL Moderator
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.
INFORMATION TABLE.JPG
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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