Service associated with produce is also low, especially at the distribution stage. Long lines seem to be the accepted mode of acquiring goods in socialist countries. While there has been some improvement in services they are still far from acceptable to a Westerner. However, the satisfaction one receives form a particular service is heavily tempered by his expectation of that service. Therefore it is quite possible that socialist consumers are satisfied with the level of service they receive.

PRODUCTS FROM THE WEST have had a strong impact on product quality in socialist countries. They are freely available in some of the socialist countries and certain can be seen in all socialist countries. While they are beyond the purchasing ability of most of the population, they do influence their expectations and aspirations. Thus, western goods create strong pressure for improvement of socialist goods.

They are, however, important factors in socialist countries that prevent the emergence of new products. First, it is not clear that an enterprise could charge a higher price for a superior good. If superiority means higher costs bus not higher prices, it is evident that an enterprise would not wish to move in this direction. Second, a new product might require changes in the production line. Since managers have learned how to live with their existing production lines make a “reasonable profit with them, they are reluctant to make changes which leave them open to a reassessment is less favorable, they will have a more difficult time earning profits.

Herwannan Pesapallo Copyright, 2007-08