The purpose of this paper is to describe the effect of quality assurance systems on business performance and subsequently, how a quality assurance system can be utilized as a determinant factor of a firm's marketing strategy, especially for the organic food sector.
Based on literature and the quality theory, the following subjects are examined: the types of goods according to their quality attributes, the benefits of participating in a quality award procedure, how a quality assurance system affect on firms' performance, and finally, the factors that determine consumers' willingness to pay a price premium for organic products.
The findings showed that, better quality conformance is associated with sales growth and better sales margins. Moreover, the most important benefit of a quality certification is its ability to increase market share and provide access to new market. In addition, the key to define quality is consumers and a company's internal definition of quality must reflect consumers' requirements. Finally, factors such as socio‐demographic characteristics, the perceived quality and risks have been found to be important determinants of consumers' willingness to pay a price premium to buy organic food products.
This study presents an outline of how a quality assurance system can be used to provide not only consistent product quality but also different elements that can be used to determine a firm's marketing strategy. The findings can help all the involved bodies to avoid the impediments and develop an appropriate marketing strategy for the effective promotion of certified organic food products.
