Final answer:
The statement is True.
Step-by-step explanation:
Quality is indeed seen as one of the most important ways of adding value to products and services, thereby distinguishing them from those of competitors. When a product or service is of higher quality, it usually provides better performance, durability, and customer satisfaction, which ultimately sets it apart from the competition.
Consumers often associate a higher price with higher quality. This is because a higher price can act as a signal of quality, especially when there is imperfect information available about the product or service. For example, a buyer may assume that a gemstone or a used car that costs more must be of higher quality, even without expert knowledge on gemstones or cars.
Therefore, focusing on quality can help businesses differentiate themselves from competitors and attract customers by providing products and services that meet or exceed their expectations. By doing so, businesses can add value to their offerings and gain a competitive advantage in the market.