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Journal Article

Return on Quality (ROQ): Making Service Quality Financially Accountable

Roland T. Rust, Anthony J. Zahorik and Timothy L. Keiningham
Journal of Marketing
Vol. 59, No. 2 (Apr., 1995), pp. 58-70
DOI: 10.2307/1252073
Stable URL: http://www.jstor.org/stable/1252073
Page Count: 13
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Return on Quality (ROQ): Making Service Quality Financially Accountable
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Abstract

Many companies have been disappointed by a lack of results from their quality efforts. The financial benefits of quality, which had been assumed as a matter of faith in the "religion of quality," are now being seriously questioned by cost-cutting executives, who cite the highly publicized financial failures of some companies prominent in the quality movement. In this increasingly results-oriented environment, managers must now justify their quality improvement efforts financially. The authors present the "return on quality" approach, which is based on the assumptions that (1) quality is an investment, (2) quality efforts must be financially accountable, (3) it is possible to spend too much on quality, and (4) not all quality expenditures are equally valid. The authors then provide a managerial framework that can be used to guide quality improvement efforts. This framework has several attractive features, including ensured managerial relevance and financial accountability.

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