Abstract
Consumer's value for product quality may be determined by the trade-off of both benefit and economic expenditures such as acquisition cost. To put this concept in a business firm's operational strategy, we estimate quantatively consumer's benefit as the utilities decomposed to physical characteristics of product quality and further decompose consumer's acquisition cost to the same level from the prices of existing products. Thus we propose an approach to set up quality and cost objectives using the relation of the both. Further we take motor cars, one of the most representative durable consumer goods, as an example to verify this approach.
