A basic strategy to deal with the radical increase in the value of yen confronting Japanese industries is to begin embracing global pricing that indifferent throughout the trade region of the product. Namely, selling price should not be on a cost plus basis, but rather by first setting a target selling price in accordance with market pricing standards, and then developing a quality plan and a target costing plan that are appropriate for the target selling price, allocating component costs, and using every possible means to achieve them. In this paper, the new viewpoint on product quality and price is proposed as a fundamental concept. That is based on "Value=Quality Q×Price, where Q≦1.0" in which product quality (high quality) and price (low price), two conflicting product attributes, are positioned at the heart of product planning in a mature market. Differential Index of Relative Quality (Relative Cost Performance) will be introduced, for the purpose of measuring competitive abilities among similar products.
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