Market Driven Quality

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Market Driven Quality (MDQ) is a term currently espoused by Donna Prestwood and Paul Schumann, but which has been around since the early 1980s. IBM used MDQ as their slogan for the IBM PCjr and OS/2. MDQ is defined as letting the market, meaning the price, determine the quality standards a business applies to its products. The term has gone out of favor somewhat, due to Wal-Mart's approach to MDQ. Wal-Mart doesn't use the term "MDQ" but applies the principle rigidly to its vendors.

Certainly MDQ has its place. We would not have commodity pricing on PCs if not for MDQ. And, on the other hand, if a business is seeking an upscale market then MDQ provides justification for high prices for high quality. Certainly Alienware thrives whereas the PC Jr died.