Consequences of Poor Quality

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Quality is vital in all aspects of life. It is imperative in business because poor quality can lead to negative consequences such as lost customers, decreased profits, and even closure.

KEY Takeaways

  • Poor quality can lead to many different consequences including lost revenue, decreased customer loyalty, increased costs, and legal actions.
  • Quality is important to any business.
  • Quality must be built into every aspect of your business.

To maintain good quality, you must have a system in place that ensures that all of your products meet specific standards. You should also ensure that your employees follow these same guidelines when producing your products.

The Consequences of Poor Quality

Poor quality can lead to several negative outcomes. These consequences can be placed in the following broad categories.
  1. Customer Related Consequences
  2. Operation Related Consequences
  3. Business Related Consequences
  4. Society Related Consequences

1. Customer Related Consequences:

Poor quality can have several customer-related consequences. Inferior quality products or services can lead to dissatisfied customers, resulting in lost revenue and decreased customer loyalty. In addition, poor quality can also cause customers to take their business elsewhere, leading to job losses and a decrease in company productivity. Poor quality also has an impact on employee productivity. Employees working on products or services of poor quality may be less productive and may experience stress due to the lack of quality assurance.

2. Operation Related Consequences:

The operational related consequences of poor quality can include lost time, wasted resources, and decreased efficiency. These could lead to increased production costs and also will lead to a higher cost of repairing.

3. Business Related Consequences:

Poor quality can have several business-related consequences. The most common are lost customers, lower productivity, and increased costs. In some cases, poor quality can also lead to product liability claims. In some cases, poor quality can also lead to legal action against the manufacturer or supplier.

Some other consequences of poor quality include:

  • Increased insurance premiums
  • Increased legal fees
  • Decreased reputation
  • Loss of goodwill
  • Increased product liability claims
  • Increased product recalls
  • Increased warranty costs

4. Society Related Consequences:

Poor quality can have several adverse effects on society as a whole. These can include increased costs, decreased efficiency, and even harm people and the environment.


Quality is essential in all aspects of the business. It is essential to have a quality management system to ensure that your products and services are of the highest quality.

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