Examples of external failure cost, Strategic Management

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Q. Examples of external failure cost

The customer perspective can control performance by the assessment of external quality failure. Costs incurred after the customer has received the good or service.

Administration of customer service and complaints
Cost of faulty product returns
Cost of product liability and warranty claims e.g. damages and repairs
Cost of free repairs and replacements for returns under guarantee
Loss of customer goodwill and brand reputation

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