IMPACT OF TOTAL QUALITY MANAGEMENT PRACTICES ON CUSTOMER RETENTION AND SATISFACTION

CHAPTER ONEINTRODUCTION1.1   BACKGROUND TO THE STUDY Total quality management practice is a firm-wide management philosophy of continuously improving the quality of the products/services/processes by focusing on the customers’ needs and expectations to enhance customer retention, satisfaction and firm performance. There are mixed results about the relationship between total quality management practices and customer retention, satisfaction and performance. However, this study will examine the impact of total quality management practices on customer retention and satisfaction.

A growing number of organizations use total quality management as a strategic foundation for generating a competitive advantage (Reed, Lemak, & Mero, 2000) and improving firm performance (Hendricks & Singhal, 1997; Lemak & Reed, 1997) and customer retention and satisfaction (Samson & Terziovski, 1999). Firms that have won quality awards generally outperform other firms with respect to both income measures (Hendricks & Singhal, 1997), customer loyalty and stock market value (Lemak & Reed, 1997). It is no surprise that the links among market orientation, total quality practices, and performance have attracted the attention of marketing and operations management researchers’ alike (Ettlie & Johnson, 1994; Flynn, Schroeder, & Sakakibara, 1994; Kohli & Jaworski, 1990; Narver & Slater, 1990; Samson & Terziovski, 1999).

Total quality management practices have been shown to enhance organizational performance for both product and service organizations (Powell, 1995). However, there is relatively little research on the differences between product and service offered by companies with respect to the impact of quality practices on customer retention and satisfaction. We know little about how these two different types of organizations view what they do, how well they do it, and its consequences. The concept of total quality management practice has been developed as a result of intense global competition. Organizations with international trade and global competition have paid considerable attention to philosophies of total quality management, procedures, tools and techniques.

According to Juran (2001), international competition requires higher levels of quality achievement by organizations. Total quality management is the popular area of research in management. Total Quality Management has been practiced in diverse manufacturing industries and now there is a growing interest in the service sector, even from non-profit organizations (Nwabueze, 1998). But the service industry differs from the manufacturing industry in a number of ways, such as service intangibility, simultaneity of production, delivery and consumption, perishability, variability of expectations of the customers and the participatory role of customers in the service delivery but the main aim by both sector is to achieve customer retention and satisfaction. Several authors have proposed models of total quality management. However, most of the models are based on theories and practices that are primarily derived from the manufacturing industry where this has been effectively practices in the recent decades.

Furthermore, total quality management has become the buzz word in the management practice. It has been defined in many different ways. The International Standard ISO 8402, Quality Management and Quality Assurance-Terminology has defined total quality management  as the ―management approach of an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society (Ljungstrom & Klefsjo, 2002). Temtime and Solomon (2002) said that total quality management seeks continuous improvement in the quality of all processes, people, products, and services of an organization. Total quality management is also a systematic approach to management that aims to enhance value to customers by designing and continually improving organizational processes and systems (Kartha, 2004). The emphasis is on employee involvement and empowerment along with customers and customer satisfaction as the focal point.

The tenets of total quality are continuous improvement, top management leadership commitment to the goal of customer satisfaction and retention, employee empowerment, and customer focus (Ugboro & Obeng, 2000). Total quality management means that the organization‘s culture is defined by and supports the constant attainment of customer retention and satisfaction through an integrated system of tools, techniques and training (Sashkin & Kiser, 1993).

1.2   STATEMENT OF THE PROBLEM Many researchers think that total quality management is old news, many of the new continuous improvement initiatives are based on total quality management philosophies. Total quality management encompasses a number of different initiatives. Juran (2001) wrote that the benefits and goals of total quality are lower costs, higher revenues, delighted customers (as seen in customer retention and satisfaction), and empowered employees. Costs can be lowered by reducing errors, reducing rework, and reducing non-value added work. Higher quality can also equate to higher revenues through satisfied customers, increased market share, improved customer retention, more loyal customers, and premium prices. Customers continue to demand higher quality goods and services. Delighted customers purchase over and over again, advertise goods and services for the company, and check first when they are going to buy anything else to see what is offered by the company they are loyal to. However, it is not easy for management to implement total quality management, because it means a cultural overhaul (Rao, Youssef, & Stratton, 2004). Deming (1981) also attested that the benefits of better quality through improvement of the process are thus not just better quality and the long-range improvement of market-position, but also greater productivity and profit. Improvement of the process increases uniformity of output of product, reduces mistakes, and reduces waste of manpower, machine-time, and materials. Kaynak (2003) suggested that a positive relationship exists between the extent to which companies implement total quality management and performance as a result of satisfied customers. 1.3   OBJECTIVES OF THE STUDY The following are the objectives of this study:

  1. To examine the impact of total quality management practices on customer retention and satisfaction.
  2. To examine the approaches to the philosophy of total quality management.
  3. To determine the factors affecting the practice of total quality management in companies.

1.4   RESEARCH QUESTIONS

  1. What is the impact of total quality management practices on customer retention and satisfaction?
  2. What are the approaches to the philosophy of total quality management?
  3. What are the factors affecting the practice of total quality management in companies?

1.5   HYPOTHESIS HO: There is no significant relationship between total quality management practices and customer retention and satisfaction. HA: There is significant relationship between total quality management practices and customer retention and satisfaction.1.6   SIGNIFICANCE OF THE STUDY The following are the significance of this study:

  1. The findings from this study will educate the managements of companies on the approaches to the practice of total quality management and its subsequent effect on customer retention and satisfaction.
  2. This research will be a contribution to the body of literature in the area of the effect of personality trait on student’s academic performance, thereby constituting the empirical literature for future research in the subject area.

1.7   SCOPE/LIMITATIONS OF THE STUDY This study will be conducted on some selected companies in Edo State. This study will also cover the method of total quality management practice adopted by the selected company so as to ascertain its effect on customer retention and satisfaction.Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

REFERENCES Hendricks, K. B., & Singhal, V. R. (1997). Does implementing an effective TQM program actually improve operating performance? Empirical evidence from firms that have won quality awards. Management Science, 43, 1258–1274. Juran, J. M. (2001). Juran's Quality Handbook, 5e. Blacklick, OH: McGraw-Hill Professional Book Group. Kartha, C. P. (2004). A comparison of ISO 9000: 2000 quality system standards, QS9000, ISO/TS 16949 and Baldrige criteria. TQM Magazine, 16, 331-340. Lemak, D. J., & Reed, R. (1997). Commitment to total quality management: is there a relationship with firm performance? Journal of Quality Management, 2, 67–86. Ljungstrom, M., & Klefsjo, B. (2002). Implementation obstacles for a workdevelopment-oriented TQM strategy. Total Quality Management, 13, 621-634. Nwabueze, U. (1998) Managing innovation in public services, Journal of TQM, 9, 155–162. Powell, T. C. (1995). Total quality management as competitive advantage: a review and empirical study. Strategic Management Journal, 16, 15–37. Reed, R., Lemak, D. J., & Mero, N. P. (2000). Total quality management and sustainable competitive advantage. Journal of Quality Management, 5, 5–26. Samson, D., & Terziovski, M. (1999). The relationship between total quality management practices and operational performance. Journal of Operations Management, 17, 393–409. Temtime, Z., & Solomon, G. H. (2002). Total quality management and the planning behavior of SMEs in developing economies. TQM Magazine, 14, 181-191. Ugboro, I. O. & Obeng, K. (2000). Top management leadership, employee empowerment, job satisfaction, and customer satisfaction in TQM organizations: An empirical study. Journal of Quality Management, 5, 247-272.

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How To Write Chapter Three Of Your Research Project (Research Methodology)

  • Methodology In Research Paper


    Chapter three of the research project or the research methodology is another significant part of the research project writing. In developing the chapter three of the research project, you state the purpose of research, research method you wish to adopt, the instruments to be used, where you will collect your data, types of data collection, and how you collected it.

    This chapter explains the different methods to be used in the research project. Here you mention the procedures and strategies you will employ in the study such as research design, study design in research, research area (area of the study), the population of the study, etc. You also tell the reader your research design methods, why you chose a particular method, method of analysis, how you planned to analyze your data.

    Your methodology should be written in a simple language such that other researchers can follow the method and arrive at the same conclusion or findings.

    You can choose a survey design when you want to survey a particular location or behavior by administering instruments such as structured questionnaires, interviews, or experimental; if you intend manipulating some variables.

    The purpose of chapter three (research methodology) is to give an experienced investigator enough information to replicate the study. Some supervisors do not understand this and require students to write what is in effect, a textbook.

    A research design is used to structure the research and to show how all of the major parts of the research project, including the sample, measures, and methods of assignment, work together to address the central research questions in the study. The chapter three should begin with a paragraph reiterating the purpose of research. It is very important that before choosing design methods try and ask yourself the following questions: Will I generate enough information that will help me to solve the research problem by adopting this method?

    Method vs Methodology

    I think the most appropriate in methods versus methodology is to think in terms of their inter-connectedness and relationship between both. You should not beging thinking so much about research methods without thinking of developing a research methodology.

    Metodologia or methodology is the consideration of your research objectives and the most effective method and approach to meet those objectives. That is to say that methodology in research paper is the first step in planning a research project work.

    Design Methodology: Methodological Approach

    Example of methodology in research paper, you are attempting to identify the influence of personality on a road accident, you may wish to look at different personality types, you may also look at accident records from the FRSC, you may also wish to look at the personality of drivers that are accident victims, once you adopt this method, you are already doing a survey, and that becomes your metodologia or methodology.

    Your methodology should aim to provide you with the information to allow you to come to some conclusions about the personalities that are susceptible to a road accident or those personality types that are likely to have a road accident.

    The following subjects may or may not be in the order required by a particular institution of higher education, but all of the subjects constitute a defensible in metodologia or methodology chapter.

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