Determining the Right Combination of Price and Quality with Focus on Customer Loyalty to Miniature Power Switch

Abstract

The Production and presentation of high-quality and low-price products plays an important part in the manufacturing industries, because the quality of the manufactured products is very important for the sustainability and profitability of such organizations and is a profitable strategy for the organization. Accordingly, due to the importance of this subject, the present research is an attempt to determine the right combination of variables in miniature power switch and prioritize them and examine the producing companies using Multiple –Attribute Decision-making (MADM) techniques so that it can select the right alternative and provide the officials with required planning in this field. The research method is a descriptive-survey one due to the nature of the work, and the population includes the managers and experts of distribution companies in Tehran city. Three series of questionnaires were distributed among those who were accepted by the company in terms of scientific and practical consideration, experience, and performance and who were capable of responding the questionnaire items. Results revealed that the most important criteria were on-time delivery of the product among the sub-criteria of service quality, service durability among the sub-criteria of product durability in price sub-criterion, and trustability among the sub-criteria of customer loyalty. It was finally shown that Pars Tavan Azma Company has the first priority among the companies producing miniature power switch, that is, it has the most appropriate price-quality combination.