Showing papers on "Quality (business) published in 1974"

A Bayesian Model of Demand for Information about Product Quality

Abstract: WHENEVER THERE IS UNCERTAINTY about product quality a consumer may benefit from obtaining information about the performance of commodities; indeed the choice of what information to purchase becomes an essential part of the consumption decision. Consumers acquire information from a variety of sources. For some commodities it is possible to test small amounts of a product before making a large purchase; taking a test drive in a car is an example. In other cases information is gathered informally from acquaintances. In yet other instances, information is supplied by newspapers, magazines and consumer information organizations. Regardless of the method used to collect information, the acquisition process is usually costly, sometimes in terms of time and often in terms of money. When the consumer makes the decision to purchase information he weighs these costs against the benefits of being informed. The purpose of this paper is to develop a theory which explains consumer expenditures for product quality information. The theory is related to the neoclassical consumer theory but differs from it in several critical respects. There are important reasons why the standard consumer theory is inappropriate for the study of information demand. The primary reason is that information is fundamentally different from other commodities, and the difference is crucial. Consumers demand most other commodities for the desirable attributes they possess, whereas information possesses none of these attributeS. A consumer purchases information because it helps him to make "better" purchases. The demand for information is therefore a derived demand that only arises when product quality is uncertain. These special features of information may give rise to demand behavior quite different from that usually observed for commodities. Since the neoclassical theory cannot be interpreted to incorporate the special features of information it is unable to explain the unique properties of information demand. The theory presented in this paper should also be constrasted to Stigler's early contribution [10] to the economic theory of information. Stigler investigated consumer demand for information about prices of products. He did not treat the demand for information about product quality. Nor is it possible to simply extend his analysis to explain consumer demand for product quality information. The demands for the two types of information arise for different reasons

Measurement in the Social Sciences: Theories and Strategies

Abstract: Among the frustrations constantly confronting the social scientist are those associated with the general process of measurement. The importance of good measurement has long been recognized in principle, but it has often been neglected in practice in many of the social sciences. Now that the methodological tools of multivariate analysis, simultaneous-equation estimation, and causal modeling are diffused more widely into the social sciences, and now that the very serious implications of random and non-random measurement errors are being systematically investigated, it is all the more important that social scientists give top priority to the quality of their data and the clarity of their theoretical conceptualizations. The book is organized so that, one proceeds from problems of data collection to those of data analysis. It is not intended to be a complete work covering all types of measurement problems that have arisen in the social sciences. Instead, it represents a series of studies that are deemed to be crucial for the advancement of social science research but which have not received sufficient attention in most of the social sciences. The basic purpose is to stimulate further methodological research on measurement and to study the ways in which knowledge that has been accumulated in some fields may be generalized. Part I is concerned with applying scaling approaches developed in psychometrics to problems that arise in other social sciences. The focus is on finding better ways to ask questions of respondents so as to raise the level of measurement above that of simple ordinal scales. Part II focuses on multiple-indicator theory and strategies as applied to relatively complex models and to change data. In this section the emphasis shifts to how one analyzes fallible data through the construction of explicit measurement-error models. Part III deals with the statistical analysis of ordinal data, including the interpretation and empirical behaviors of various ordinal measures of association.

Job satisfaction as an indicator of the quality of employment

Abstract: It is suggested that the quality of employment should be assessed from the value perspectives of the employer and of society as well as the perspective of the worker. The prevailing conception of the nature of job satisfaction, and the associated measurement methods, provide useful but unnecessarily limited indicators of the quality of employment. An enlarged conception is offered as to the nature of job satisfaction, its causes, and its possible consequences. The implications of this conception for the utility of satisfaction measures as social indicators are examined as to three aspects: (1) The psychology of job satisfaction; (2) The sociology of job satisfaction; (2) The approach and technology of using subjective satisfaction measures in conjunction with other indicators. The view is expressed that direct measures of subjective job satisfaction are an essential component in any effort to make comparisons or monitor changes in the quality of employment, but that such measures, like other subjective and objective indicators, have ambiguous meaning if used alone.

The Protein Problem, its Size and Nature

Abstract: An insufficient amount of protein in the diet is held to be at the heart of the problem of persistent and widespread malnutrition in the developing countries. However, when one examines the available data, the conclusion is clear that what diets lack is not protein but energy foods to enable the body to utilize the protein people actually do eat. The paper presents a method of investigating the nature of the problem based on the simultaneous examination of diets for protein and energy, illustrates it on available data and concludes that protein malnutrition is the indirect result of inadequate energy intake. There is no evidence that the quality and concentration of protein in cereal-legume diets normally eaten in the developing countries is inadequate to meet protein needs provided energy intake is adequate. The protein problem is therefore essentially a socio-economic problem. Production of semi-conventional, cheap, protein-rich foods using modern technology, and distribution of factory foods so produced through special feeding programmes as recommended by the international bodies, will be a costly and inefficient method of solving the problem. The belief that diets are deficient in protein and that the deficiency is acute can also be traced to the new interpretation that has been placed on the meaning of recommended intake by the FAO/WHO expert committee on nutrition, namely that as an individual's intake falls below the recommended level, the risk of inadequate intake increases. The validity of this interpretation and its implications are examined in the paper.

Cost and Efficiency in the Production of Hospital Services

Abstract: This paper summarizes the generalfindings of a research effort designed to complete a detailed analysis to identify and measure the effects of factors which significantly affect the cost and efficiency of the short-term general hospital system in the United States. The empirical analysis involved data on approximately 6, 000 hospitalsfor the years 1965, 1966, and 1967 and involved a model which expressed hospital cost as a function of the level of output, the quality of services provided, the scope of services provided, factor prices, and relative efficiency. The statistical analysis does provide insight to the factors affecting hospital cost: hospital services are produced subject to economies of scale but the absolute magnitudes are rather insignificant; on the basis of the exceedingly limited data available it can be concluded that quality does affect costs; medical education is a significant factor affecting hospital costs; and product mix has a significant impact on costs. Three separate analyses are summarized specific to the product mix difference aspect of the production of hospital services, its effect on hospital cost analysis, and techniques that can be employed to accountfor product mix. Finally, an analysis of the characteristics of high cost and low cost hospitals is summarized.

A Mathematical Model for Price Promotions

Abstract: A market where two groups of brands, premium higher priced and private label lower priced are sold is considered It is assumed price is the only indicator of quality Using hypotheses about consumer behavior in such markets, a model for changes in market share that would result from temporary price reductions by one of the premium brands is constructed The model is used to develop promotional strategies for one of the premium brands, given various assumptions about competitive behavior Methods for use of the model are suggested

Beer can structure

Abstract: A can structure suitable for packaging beer or the like includes an indicator formed integral with one end wall. The indicator provides visual, tactile and audible indication of the quality of the product in the can. Various specific indicator structures are disclosed.

Elements of semiconductor-device reliability

Abstract: Semiconductor-device quality and reliability are discussed in the context of the major factors producing failures, the relationship of process technology and its control to device quality and reliability, the testing procedures used to determine quality levels, and screening procedures that can be employed to segregate certain levels of device quality. Failure rates are presented for transistors and for both bipolar and MOS integrated circuits in several types of packages and for several kinds of device process technology.

A New Approach to Continuous Digester Control

Abstract: The main task when controlling continuous digesters is to find a suitable strategy to control the quality figure of the pulp (the kappa-number) in a way that minimizes the deviation of the kappa-number from a preselected set- point. To solve this problem one has to face many difficulties as the process is very complex and as the measurement difficulties are several.

Bank Examiners' Evaluation of Credit: An Analysis of the Usefulness of Substandard Loan Data

Abstract: One of the primary jobs of U.S. bank examiners is to evaluate the quality of credit extended by American banks. The examiners inspect all large loans (with respect to the bank's capital) and a sample of smaller loans, appraising about 50 to 60 percent of the bank's loan portfolio. Those loans whose quality is questioned are classified into three categories: loss, doubtful, and substandard. The first two categories, which together are much smaller than the third, represent loans that obviously are, or are very likely to become, uncollectible. The third category, substandard loans, has held the greatest interest for regulators and economists because the amount of these loans appears to be an up-to-date and "on line" indicator of credit quality. In particular, the National Bureau of Economic Research has had a long-standing interest in such bank examination data, as is indicated by studies by Moore [9, 10], Wojnilower [14], and Early [5]. The determination of substandard loans seems to be a major reason for the Federal Reserve System's maintenance of a staff of about 800