HT manufactures and sells consumer goods. The market in which it operates is highly competitive and HT

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HT manufactures and sells consumer goods. The market in which it operates is highly competitive and HT is constantly designing new products in order to maintain its market share. The life cycle of products in the market is extremely short with all of the manufacturers constantly introducing new products or variations on existing products.
Consumers consider two main factors when buying these products: price and quality. HT uses a penetration pricing policy when launching its products and is always striving to improve its quality from product design stage through to customer care. As a result it has a 15 per cent market share, and its largest competitor has a 6 per cent market share with around 30 other companies sharing the remainder of the market.
Required:

(a) Compare and contrast:
•Costs of quality conformance; and •Costs of quality non-conformance.

(b) Discuss the relationship between quality conformance costs and product selling prices in HT.

(c) Explain how Kaizen principles could be used by HT to extend the life or its products.

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