Page 25 - QUALITY Magazine (Volume 03 - Issue I)

occurring in the first place, the support resources can
be allocated to generate more value-added services
instead of being tied up in handling complaints, so
the profits will grow and the image will remain good
(Rane et al., 2023).

Damage to Brand Equity and
Market Position
Regular quality failures harm brand equity
significantly, changing consumer-perceived value
and brand position in the market. The practice is
that brand equity is based on reliability, trust, and
quality; and constant failures undermine these
fundamentals, including the capacity for a brand to
hold a premium position in the market. When the
consumers relate the brand to low quality, God’s
ability to offer a distinct from the competitors
becomes a challenge as most brands shift to offering
low prices as a factor. This shift can adversely affect
the degree of profit and hence profit margins and
also the future growth opportunities. Research also
shows that where results from quality problems,
perceptions negatively affect a company for a long
through relativity of brand position in as much as
consumers are reluctant to pay high prices for
substandard goods. Branding loses its value after
quality slumps and the process of rebuilding it takes
a lot of time and money in promotions and quality
enhancement. On this basis, it is stated that quality
control must remain high within companies to
ensure that there are no relapses in brand position.
Remaining on a quality course is just as important
to protect and build upon the quality, credibility,
and recognition of the brand as it is to insist upon
a consistent market, competitive advantage, long-
term market dominance, and profit generation
capability (Bhowmick, 2022).

“Systemic failures
can degenerate the brand value and decrease
the indicator of an organization’s efficiency,
as well as lead to an

increase in operating
expenses and demotivation of personnel”