Total quality management (TQM) at the industry end along with quality function deployment (QFD) molds product quality. It flows to the customer at the market end with a value called quality perception, embedding the concept of probability of acceptance and quality uncertainty. The purpose of this paper is to analyze and validate the existence of upcoming term “quality uncertainty” in the backdrop of information asymmetry.
Theories of probability and reliability engineering are used for mathematical modeling and analysis. Fault tree and success tree method is specifically applied to analyze quality uncertainty and quality perception at the market end.
Quality perception is an outcome of combined probability of information symmetry and TQM or product quality, whereas its inverse is quality uncertainty. Determining quality perception or uncertainty of any product type is possible in a market scenario, and its impact on product life cycle and company revenue can be accessed accordingly.
The model proposed here helps compute information symmetry and quality perception at the market end. More data exploration methods can be investigated to apply this model precisely in real life setting.
It is of equal importance to measure quality uncertainty due to information asymmetry and commensurate revenue loss to the company. Based on this, a policy mix of maneuvering for quality perception enhancement can be developed at both ends of supply chain processes.
With quality perception defined and modeled, the paper attempts market orientation to quality paradigm. It adds a new dimension to quality management.
