earticle

영어

According to the management literature review, nonfinancial quality measures may not accurately represent customers' perception of product that prompt them to make future buying. On the other hand, financial quality measures could catch activities strongly correlated with future lost sales. This paper test the extent to which reported quality measures are informative about future revenues by examining the extent to which changes in reported quality measures predict future changes in revenues. This study find that external failure and internal failure costs negatively and positively respectively, associated with future sales. The paper also find that the relation between the number of customer complaints measures and future sales generally are negative and statistically significant. However, improvement in defect rates do not affect future sales in the all subsequent quarters. Furthermore, the results show that appraisal costs could negatively affect failure costs, but prevention costs are insignificant at 10 percent level,and do not affect failure costs.