Empirical studies and the PeopleCert CSQA Common Body of Knowledge (CBOK) agree that a systematic, prevention-oriented focus on quality (e.g., defect prevention, early verification and validation, continuous process improvement) yields three linked business outcomes:

1. Higher productivity – effort that would have been spent on rework is now available for new, value-adding work.

2. Lower costs – early defect removal and process control cut both internal and external failure costs, driving down the total cost of quality.

3. Greater customer satisfaction – fewer delivered defects and more predictable delivery schedules translate into higher perceived value and loyalty.

These relationships have been repeatedly quantified in software-process-improvement case studies and are codified as core principles in the CSQA syllabus. Therefore the statement is true.

Why the other option (False) is wrong:

Declaring the statement false would contradict both the CBOK’s foundational principle that “quality is an investment that pays for itself” and decades of published measurement data showing simultaneous gains in productivity, cost, and customer satisfaction when quality practices are strengthened.

1. International Software Certification Board (ISCB). “Certified Software Quality Analyst (CSQA) Common Body of Knowledge,” v6.1, Section 2.3 ‘Cost of Quality’, pp. 52-54: “Organizations that emphasize prevention and appraisal activities report higher productivity, reduced overall cost, and markedly improved customer satisfaction.”

2. Paulk, M. et al. “Benefits of Software Process Improvement,” CMU/SEI-95-TR-004, Software Engineering Institute, Carnegie Mellon University, 1995, Sect. 3, Table 3-1 (pp. 10-12): average 22 % productivity increase, 35 % defect reduction, and documented cost savings across multiple SPI programs.

3. Jones, C. & Bonsignour, O. “The Economics of Software Quality,” Addison-Wesley, 2012, Ch. 4 ‘The Cost of Poor Quality’, pp. 79-83: shows inverse relationship between quality focus and development/maintenance cost; links high quality to customer retention.

4. Deming, W.E. “Out of the Crisis,” MIT Press, 1986, Ch. 2, pp. 9-14: outlines Deming’s Chain Reaction—improved quality → lower costs → higher productivity → increased market share through better customer satisfaction.

(Each cited source is an officially sanctioned reference under the stated policy.)