Hi all, I'm looking for a reference or two that may support the idea that a reliable product is likely to command a price premium in the market. This is accepted by the market because a reliability product's higher price is offset by less cost of downtime or consequences of product failure.
I've seen this in practice in a range of industries, yet is there a study or research report that focused on this idea?
cheers,
Fred
Dear Fred,
Please check the following paper: http://chybowski.eu/images/PDF/07-zn-am-51-123-chybowski-gawdzi-ska.pdf
There is an example analysis of operation costs in terms of components' failures but you may easily extend it by prices of components.
Best
Leszek
Dear Fred,
Chapter 3 of this book can be useful for you.
https://www.springer.com/de/book/9783319899688
Regards,
Igor
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