Visually superior design provides a competitive edge in the marketplace by attracting consumers and increasing the perceived value of product quality and functionality. Although the positive influences of visual product design on market performance are well documented in the literature, little is investigated on how visual design plays a role in a negative situation such as product failure. The positive halo effect of visual design on product evaluation is called ‘beauty premium’, while little is investigated on how beauty premium changes when consumers face product failure. For example, would the beauty premium continue or fire back when a product with superior design, called a ‘beauty’ in this study, has functional harm? To answer this inquiry, we focus on the following research questions 1) Would the beauty effect protect or damage consumer purchase intention and product sales after product failure, and 2) Under what conditions can beauty effects be positive or negative after product failure?

This paper analyzes the difference between theoretical cost of quality and real world cost. Examined are the theoretical cost structure of quality, it’s measurement styles, a process based improvement strategy of quality cost, and possible adaptation of d

This paper analyzes the difference between theoretical cost of quality and real world cost. Examined are the theoretical cost structure of quality, it's measurement styles, a process based improvement strategy of quality cost, and possible adaptation of decision making concepts in enhancing the cost structure. This study will contribute to the literature in delineating an improvement process of quality cost by adjusting service policy.