Cost Vs Quality

If a company is more concerned about cost than quality of the service, the company does not seem to have any long term goals. They are survivors and want to get away with current scenario. I know a big insurance company which sold one of its business because they were not able to manage the software system which have been maintained so poorly that it was unmanageable. The worth of that company being  $10b. 

Cost and Quality both are important. In fact, we buy based on our understanding of perceived benefits at given cost.
We need to understand our customers and their compelling reasons to buy. We need to communicate cost of each quality element added and allow our customers to take decisions on their resons to buy. In my experience collectively, we and our competitors, whole industry catch our customers unaware. As we educate them, they become more aware of what we are offering at a little extra, which has definite and substantial benefits, contracts flow to us. Also, an aware customer demands more from our competitors and keeps whole equation balanced.
Remember if cost is compelling reason to buy over the other benefits offered, low cost is a quality feature, which we need to meet. A good businessman chooses customers based on maximum realization where quality and cost both are important.

Hm, will I buy a brand new Mercedes for just USD 1.000 (low cost) ? Without working breaks (low quality) ? I mean: I notice the brake problem on my first tour riding at 280 km/h … (hidden low quality).
Low quality, in my view, will cause inconvenience later, be it in terms of satisfaction (“I thought I could do .. with this !”), complaints (“What did YOU sell me?”) or just lost money (“Sadly, replacing was cheaper than repairing it …”) or just lost reputation (“Those guys won’t see me again”).
Let’s go to an extreme and replace the term quality by the term safety. Safety is a specific, yet relevant product quality. What’s about low-cost, low-safety products? Yes, I do prefer zero defects here. Same with zero defects in company image etc.
Which brings me to the conclusion: low-cost, high-quality, high-safety products are the ones attracting me.
Just my thoughts.

Hi
I always like to explain things by using food as an example. If you were given a choice between a cheap hamburger but the taste is deplorable and one that cost slightly more but taste good, which would you go for? You might say go for the good one but it depends (not a 6 Sigma word btw). It depends on your income. If you not earning much, the cheaper one will do fine as long as it fills the stomach & vice versa for the the slightly more expensive one. The conclusion is we are dealing with different types of people with different wants. The question now is, which type of people do you want to deal with.