Which concept is based on those companies who believe in this philosophy that quality of goods or services of goods can easily attract customers?

Product Concept

The correct answer is option 2- Product Concept.

Product Concept is based on those companies who believe in this philosophy that quality of goods or services of goods can easily attract customers.

The Product Concept : As a result of emphasis on production capacity during the earlier days, the position of supply increased over period of time. Mere availability and low price of the product could not ensure increased sale and as such the survival and growth of the firm. Thus, with the increase in the supply of the products, customers started looking for products which were superior in quality, performance and features. Therefore, the emphasis of the firms shifted from quantity of production to quality of products. The focus of business activity changed to bringing continuous improvement in the quality, incorporating new features etc. Thus, product improvement became the key to profit maximisation of a firm, under the concept of product orientation.