Skip to main content

Hooray to lousy Quality

'Sooner or later, people will figure out that in a capitalist system, information and transparency are as valuable, if not more valuable, than all the regulation of business that Washington can produce. There is a middle ground. You can have intelligent regulation and economic innovation by forcing bad players away from the table.'

The truth is, Adam, You can't! Intelligent regulation? What's that about? Protecting consumers? From who? Bad sellers, perhaps? Bad idea, Adam.

Here's why.

The first rule of quality says quality is as defined by the consumer. Not by you, or me, or a regulator. That means what may be bad quality to you, me, or an 'intelligent regulator', may be good quality to a particular consumer. And if our definitions of quality deny that c0nsumer the opportunity to buy, we deny him his right.

Consider this. Let say, in town A there's a seller X selling lousy chairs at dirt cheap prices. Lets say these chairs are known to break down in a month's time. Now that's probably lousy quality to you. But then lets assume I move in temporarily into town A, looking to stay a month. What would you have me do? Buy furniture from seller Y who sells teakwood chairs at premium prices, and then worry about what I do with the it once I wanna leave; or would you recommend I buy the lousy chair from seller X at the dirt cheap price, use it for a month and dump it in garbage?

You see Adam, sellers must be given the right to churn out bad quality. And buyers must be allowed to buy such bad quality, if the want to. If you really want bad sellers to be out of the way, leave it to consumers.

On the other hand, if you see lousy sellers eking a living out of 'third rate' products, know this for sure. Someone's buying. You, I, or a regulator don't need to do anything about that!

Comments

Popular posts from this blog

Situational Involvement of Consumers

There are two types of involvement that consumers have with products and services, Situational and Enduring. Situational involvement as the term suggests, occurs only in specificsituations whereas Enduring involvement is continuous and is more permanent in nature.

Decisions to buy umbrellas in India are driven by the onset of Indian monsoon. Monsoon rains arrived in India over the South Andaman Sea on May 10 and over the Kerala coast on May 28, three days ahead of schedule. But then, after a few days of rain, South India is witnessing a spate of dry weather. Temperatures are soaring in the north of India. The Umbrella companies in the state of Kerala are wishing for the skies to open up. So is the farming community and manufacturers of rural consumer products whose product sales depend totally on the farming community. The Met. department has deemed this dry spell as 'not unusual'.

India's monsoon rains have been static over the southern coast since last Tuesday because of a…

Prior Hypothesis Bias

Prior Hypothesis bias refers to the fact that decision makers who have strong prior beliefs about the relationship between two variables tend to make decisions on the basis of those beliefs, even when presented with the evidence that their beliefs are wrong. Moreover, they tend to use and seek information that is consistent with their prior beliefs, while ignoring information that contradicts these beliefs.

From a strategic perspective, a CEO who has a strong prior belief that a certain strategy makes sense might continue to pursue that strategy, despite evidence that it is inappropriate or failing.


Ref : Strategic Management : An Integrated Approach, 6e, Charles W L Hill, Gareth R Jones

Wearing Cuba means Walking Cuba

There's something ethereal about wearing 'Cuba'. Suddenly its the streets of Havana, smoke filled and lit by the groovin', more than the lights. The bars are packed to hilt and dreamy women seem to glide by. The feeling's beyond magical.

How did I get there?

Before I explain, I gotta tell you about the power of brands to take you places. Brands bring with them an ability to prompt you to conjure up the unreal. They can transform your reality into fantasy. And consumers are more than willing partners to brands as the drudgery they face in everyday life begs an injection of fantasy. Brands that operate in a zone of the unreal do the conjuring act as there's nothing else that consumers can call for, while making judgements. For instance, what should I be judging the lip paint on? Its colour and tone or its ability to turn me into a diva?

Cuba's a perfume. The moment I wear it, I am traipsing the streets of Havana. Its smoke filled bars I see. Its music I hear and…