PERFORMANCE QUALITY Most products occupy one of four performance levels: low,
average, high, or superior. Performance quality is the level at which the product’s primary
characteristics operate. Quality is increasingly important for differentiation as companies adopt a
value model and provide higher quality for less money. Firms should design a
performance level appropriate to the target market and competition, however, not
necessarily the highest level possible. They must also manage performance quality
through time. Continuously improving the product can produce high returns and
market share; failing to do so can have negative consequences.