Marketing In North Korea (12)
- The Winds of Quality over Quantity Principle Blows to North Korea
Jeon Byung-kil
Senior Consultant of YESInnovation
former of Secretary General of UniKorea Foundation
The Principle of Quality over Quantity Appears in North Korea’s Media
In January 2020, the term “quality over quantity principle” first appeared in the North Korean media. Some foreigners who have interests in the country but could not understand the word written in Chinese characters became curious about its meaning. In fact, most South Koreans do not understand the meaning of this word either. The quality over quantity principle simply means “improve the quality of products first before considering the quantity of products.” Ever since the term was first introduced by the North’s Korean Central News Agency (KCNA) on January 1, 2020, it has been frequently mentioned in a number of media outlets.
On January 9, 2020, an article titled “The principle of quality over quantity must be kept in every production unit” was published by the North’s newspaper <Rodong Sinmun>. The article says, “the thought of compromising product quality blaming the country’s unfavorable financial conditions is a bad idea,” emphasizing the importance of product quality. The article also argues “focusing only on the product’s quantitative growth and neglecting its quality is not only a short-sighted attitude that lags behind the calling of this era that we should build the most powerful country in the world, but also proves that the philosophy of juche, or self-reliance, has not taken firm root in our society. Products that have failed to meet the qualitative requirements on the excuse of self-reliance have neither use nor demand from consumers. Further, it will be a waste of our efforts, materials and time, not to mention that it will greatly undermine both individual growth and the country’s economic development.”
The Rodong Sinmun said on the 1st that July is a "monthly for product quality improvement measures," and asked, "Let the quality
improvement ethos firmly dominate the economy as a whole." Photograph shows Maebongsan Medical Supplies Factory/News1
According to an article from <Rodong Sinmun> published on January 22, 2020, “violation of the quality over quantity principle will result in redundant production and inventories, which will decrease the quality of life for both consumers and producers.” It goes on as follows: “If we, as a nation, make progress in the economic projects and look for practical measures together, we can produce quality products which will be beloved by our people and the international community. This will in turn significantly enhance the welfare of our citizens.” The North’s quality over quantity principle simply means that the country should first work on increasing the quality of products and services before considering the quantitative aspect. Since the launch of Kim Jong-un administration in 2012, North Korea has been devising ways to enhance the quality of its outdated products and services.
Quality and Customer Satisfaction
Quality is a combination of different quality characteristics. Instead of making a black-and-white choice between “good” and “bad,” quality should be determined based on the understanding of its characteristics on multiple dimensions. The characteristics of quality typically concern the ability of a product or service that fulfills human needs, and such characteristics can be classified into eight categories as follows: performance, features, reliability, conformance, durability, serviceability, aesthetics, and perceived quality. A deep understanding of customer satisfaction is a prerequisite for developing a quality strategy. Customer satisfaction refers to the behavioral intentions of a customer in the process of comparing and evaluating the product.
Customer satisfaction is largely determined by comparing customer expectations before purchasing the product or service and perception levels after such a purchase is completed. Therefore, customer satisfaction affects future purchases of products and services the most. On the other hand, customer dissatisfaction happens when the perceived product quality falls behind customer expectations. When dividing product functions into central functions (performance, conformance, reliability, durability) and peripheral functions (features, serviceability, aesthetics, perceived quality), customer satisfaction can be associated with peripheral functions, while customer dissatisfaction can be linked to the lack of central functions. In other words, while central functions are necessary to a certain degree for product quality, peripheral functions are what determine customer satisfaction.
On July 2, 2020, North Korea’s Korean Central Television released an 8-minute long video on the quality over quantity principle based on the interview with customers and staff of the Pyongyang Department Store No. 1. In the interview, there are phrases like “the shoes are light-weighted and of good quality,” “foreign cosmetics products had many side effects, but domestic products helped improve my skin conditions,” and “there is growing competition to enhance product quality.” These phrases reflect various characteristics of quality that are based on central functions mentioned above.
Quality Differentiation Strategy
Then why is North Korea trying to enhance the quality of its products and services? Although many say North Korea is the most reclusive country in the world, many products and services of the outside world are entering the country through various methods. Consequently, North Korean consumers developed an eye for good quality after having compared many domestic and foreign products. A <Rodong Sinmun> article published on March 17, 2020 demanded caution for imported goods, saying “if we fail to guarantee the quality of our products blaming our inferior conditions and environment, what will be the results? In this way, we will never be able to meet the demands of our people for high-quality products and culture, nor can we develop our country’s economy. Also, this will only make people become more dependent on goods made in other countries.”
The quality over quantity principle is interpreted as North Korea’s strategic approach that aims to enhance the quality of its products. In other words, the principle is a quality differentiation strategy often discussed in marketing studies. Quality differentiation strategy is a marketing strategy that aims to give a competitive advantage to a product by differentiating its functions and services from those of its competitors in a particular product (including services) market. More importantly, quality differentiation requires at least one or more competitive advantage of the product. Businesses should always keep up with customer trends and focus on key quality characteristics of their products. Also, businesses must ensure that customers perceive the quality characteristics of their products without any distortion. These are the challenges lying ahead of the North Korean economy in pursuit of the quality over quantity principle.
If North Korea is to successfully carry out the quality over quantity principle, it is important to choose the right strategy. Resource allocation, capability development, systemic strategy implementation, and passionate attitudes – all these efforts are required in order to successfully realize the principle in North Korea.