Technological Innovation by Firms

Enhancement of Product Quality

Alvin J. Harman, Arthur J. Alexander, M. Davis, Allen D. Lee

ResearchPublished 1977

Deals with the effect of technological innovation on product quality change. Several models sort out "technology push" from "demand pull" motivations. The first assumes that product quality can be captured by a scalar measure that is a function of performance dimensions. The second is based on the hedonic price index. Three other approaches are identified, two of which involve quality as a vector of several dimensions of a product. Finally, a product quality model could be devised based on each product's utility to users. Three models are subjected to empirical analysis using data for computers and milling machines. The "hedonic price index" approach seems to provide a better description than does the scalar model. The vector model of quality also shows promise. Choice among models is best made on the basis of analytical objectives for which product quality is being measured. (See also R-2237/1.)

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  • Copyright: RAND Corporation
  • Availability: Available
  • Year: 1977
  • Print Format: Paperback
  • Paperback Pages: 72
  • Paperback Price: $25.00
  • Document Number: R-2237-NSF

Citation

RAND Style Manual
Harman, Alvin J., Arthur J. Alexander, M. Davis, and Allen D. Lee, Technological Innovation by Firms: Enhancement of Product Quality, RAND Corporation, R-2237-NSF, 1977. As of October 5, 2024: https://www.rand.org/pubs/reports/R2237.html
Chicago Manual of Style
Harman, Alvin J., Arthur J. Alexander, M. Davis, and Allen D. Lee, Technological Innovation by Firms: Enhancement of Product Quality. Santa Monica, CA: RAND Corporation, 1977. https://www.rand.org/pubs/reports/R2237.html. Also available in print form.
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