QUALITY,PRICE POINTS,FACTORS AFFECTING

MERCHANDISE MIX-BUDGET CONSTAINT

Submitted By- Submitted To-

KRITIKA CHANGA DR.RAJEEVSAMUEL
MBA II
 PRODUCT QUALITY

• Product Quality is the collection of all the features and

characteristics of a product that contribute to its ability to meet
the customer needs and requirements. It’s the ability of the
product to fulfill what the end user wants and perceives as
value. For a product to be of good quality it should be reliable
and perform all its functions smoothly.
 7 PRODUCTS QUALITY PARAMETERS
• 1. Ability to meet stated needs The first and foremost quality
parameter is that whether the product can do what it claims with
certainty and repeatability. As an example a microwave needs to
perform basic heating of the food as per the temperature setting
and on a regular basis. If it overheats the food randomly, then
the quality would be poor.
• 2. Durability Good products are always durable for the time
period of their intended use. Good quality TVs were known to
remain in homes for years and decades. Even today good
quality phones keep working for number of years. Durability is
an important aspect of product quality and also for customer
perception.
• 3. Reliable This point is bit similar to the first point but reliability is
that the quality is so good that you can rely on it for every time.
Good quality products are always reliable like cars and vehicles.
• 4. Efficient Product quality is not only on the performance of a
product but also how well it performs the job or saves costs. Poor
quality is often linked to more money being spent on operations and
repairs. Air Conditioner of high product quality tend to perform
better and also consume less energy as compared to lower quality
products. Efficiency is really important parameter in defining the
overall quality.
• 5. Safe A good product would always focus on security of the end
user. Many products focus heavily on it and it helps them establish a
positive brand image in the market. On the other hand poor products
lead to issues and are not perceived well.
• 6. Finishing and Build Quality A good product would always
have proper finishing without rough edges or poor visual
quality. As an example, Phones of good companies are often
sleek in design and have good build quality and materials used
as compared to low quality phones.
• 7. Packaging An important parameter for product quality can
be its packaging. Good products have proper packaging, labels,
manuals and documentation with proper branding and quality.
 PRICE POINTS
• Pricing is another important issue. India is a very price sensitive
market. At any given point of time what should be the price
range of the merchandise? Is a very important question asked to
himself by the retailer. For the same product prices vary
depending upon the type of quality as well as brand name.
There can be situations where despite being a price sensitive
market high-priced products are in high demand. There are
many up market stores which stock brands which are status
symbols for the higher echelons of the society. Depending upon
the location of the shop as well as nature of commodities dealt
with a retailer should decide what sort of price points to deal
within.
 FACTOR AFFECTING MERCHANDISE MIX -
BUDGET CONSTRAINT

• BUDGET CONSTRAINT
In merchandising budget seems to be the biggest
constraint. The range of merchandise as well as variety has
become so large that it is impossible for the retailer to stock
all varieties of any given product. The retailer has to decide
within his limited resources what sort of depth in each
product line he should maintain. The budget constraint is
the boundary of the opportunity set—all possible
combinations of consumption that someone can afford
given the prices of goods and the individual’s income..