If we group products and services (entities) by type, category, class and  grade
 we can use the subdivision to make comparisons on an equitable basis.  But
 when we compare entities we must be careful not to claim one is of  better
 quality than the other unless they are of the same grade. Entities of the  same
 type have at least one attribute in common. Entities of the same grade  have
 been designed for the same functional use and therefore comparisons are  valid.
 Comparisons on quality between entities of different grades, classes,  categories
 or types are invalid because they have been designed for a different use  or
 purpose.
 Let us look at some examples to illustrate the point. Food is a type of  entity.
 Transport is another entity. Putting aside the fact that in the food  industry the
 terms class and grade are used to denote the condition of  post-production
 product, comparisons between types is like comparing fruit and trucks –  there
 are no common attributes. Comparisons between categories are like  comparing
 fruit and vegetables. Comparisons between classes are like comparing  apples
 and oranges. Comparisons between grades is like comparing eating apples  and
 cooking apples.
 Now let us take another example. Transport is a type of entity. There  are
 different categories of transport such as airliners, ships, automobiles and  trains;
 they are all modes of transport but each has many different  attributes.
 Differences between categories of transport are therefore differences in  modes of
 transport. Within each category there are differences in class. For  manufactured
 products, differences between classes imply differences in purpose. Luxury  cars,
 large family cars, small family cars, vans, trucks, four-wheel drive  vehicles etc.
 fall within the same category of transport but each was designed for a  different
 purpose. Family cars are in a different class to luxury cars; they were  not
 designed for the same purpose. It is therefore inappropriate to compare  a
 Cadillac with a Chevrolet or a Rolls Royce Silver Shadow with a Ford  Mondeo.
 Entities designed for the same purpose but having different specifications  are
 of different grades. A Ford Mondeo GTX is a different grade to a Mondeo  LX.
 They were both designed for the same purpose but differ in their  performance
 and features.
 Now let us take an example from the service industry: accommodation.  There
 are various categories, such as rented, leased and purchased. In the  rented
 category there are hotels, inns, guesthouses, apartments etc. It would be  inappropriate
 to compare hotels with guesthouses or apartments with inns. They are
 each in a different class. Hotels are a class of accommodation within which  are
 grades such as 5 star, 4 star, 3 star etc., indicating the facilities  offered.
 You can legitimately compare the quality of entities if comparing entities  of
 the same grade. If a low-grade service meets the needs for which it  was
 designed, it is of the requisite quality. If a high-grade product or  service fails to
 meet the requirements for which it was designed, it is of poor  quality,
 regardless of it still meeting the requirements for the lower grade. There  is a
 market for such differences in products and services but should  customer
 expectations change then what was once acceptable for a particular grade  may
 no longer be acceptable and regrading may have to occur.
 Where manufacturing processes are prone to uncontrollable variation it  is
 not uncommon to grade products as a method of selection. The product that  is
 free of imperfections would be the highest grade and would therefore
 command the highest price. Any product with imperfections would be
 downgraded and sold at a correspondingly lower price. Examples of  such
 practice arise in the fruit and vegetables trade and the ceramics, glass  and
 textile industries. In the electronic component industry, grading is a  common
 practice to select devices that operate between certain temperature ranges.  In
 ideal conditions all devices would meet the higher specification but due  to
 manufacturing variation only a few may actually reach full performance.  The
 remainder of the devices has a degraded performance but still offer all  the
 functions of the top-grade component at lower temperatures. To say that  these
 differences are not differences in quality would be misleading, because  the
 products were all designed to fulfil the higher specification. As there is  a
 market for such products it is expedient to exploit it. There is a range  over
 which product quality can vary and still create satisfied customers.  Outside the
 lower end of this range the product is considered to be of poor quality.
 
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