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Order Winners & Qualifiers: Difference & Examples

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  • 0:02 Selection of Products
  • 0:36 Order Winners
  • 2:15 Difference Between…
  • 3:08 Lesson Summary
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Lesson Transcript
Instructor: Jennifer Lombardo
In this lesson, you will learn how to differentiate between customers' order winners and qualifiers and explain why this difference is important to developing the operations for a firm.

Selection of Products

Why do you choose to be loyal to Disney every time you go on vacation? Why does your brother always buy Adidas sneakers to wear? Companies must earn consumers' loyalty and respect, which usually results in sales. We are going to examine order winners and qualifiers and understand the difference between the two terms. Both of the terms were created by Terry Hill, a professor at the London Business School. In addition, let's look at some examples of each and why the difference is important to developing the operations strategy for a firm.

Order Winners

Why do you choose to buy a specific firm's goods and services? Order winners are the competitive advantages such as quality, delivery speed, reliability, product design, flexibility, and image that cause a firm's customers to select that company's products or services. It is the main reason why customers purchase a company's product. For example, the Shine family vacations at Lake Tahoe for prestige and quality, while they order all of their products from Pramazon for quick delivery speed. The Shine family's teenage children are loyal to Pear Products for product design of technology products and purchase Big John backpacks for their reliability.

Order Qualifiers

Order qualifiers are the competitive advantages that a company must demonstrate in order to be a viable competitor in the business arena. For example, if technology company Pear Products does not meet the minimum standards on order qualifiers, then customers will ignore or reject their products and services. In regards to operations, a company only needs to meet the minimum criteria to be considered part of the competitive set. For example, quality is considered an order qualifier for most industries. So for example, the automobile industry faces consumers who expect quality as a given and do not perceive it as an order winner. When auto companies have reports of quality issues or recalls, the business becomes undesirable and is not considered as part of a consumer's choice set.

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