A CRITICAL REVIEW OF TOTAL QUALITY MANAGEMENT AND IMPACT ON CUSTOMER RETENTION AND SATISFACTION
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- NGN 3000
BACKGROUND TO THE STUDY
Total quality management is a company-wide management concept that focuses on continually improving the quality of products/services/processes by concentrating on the requirements and expectations of the customers in order to improve customer retention, satisfaction, and firm performance. According to Dimitriades (2016), the link between overall quality management approaches and customer retention, satisfaction, and performance yields conflicting outcomes. This study, on the other hand, will look at the influence of whole quality management procedures on customer retention and satisfaction.
According to Claver, Gasco, Llopis, & Gonzalez (2021), total quality management is being used by an increasing number of businesses as a strategic basis for producing a competitive advantage and enhancing firm performance, as well as customer retention and satisfaction. Organizations that have received quality awards outperform other firms in terms of income, customer loyalty, and stock market value. It's no wonder that the connections between market orientation, overall quality practises, and performance have piqued the interest of marketing and operations management scholars alike (Chin & Pun 2019).
Total quality management approaches have been demonstrated to improve organizational performance in both product and service enterprises (Agwu 2018). However, there has been little study on the influence of quality procedures on customer retention and satisfaction in relation to the variations between product and service given by organization. We know very little about how these two types of organisations see what they do, how well they do it, and the repercussions of their actions.
As a result of severe global rivalry, the notion of whole quality management practise has emerged. Organizations with worldwide commerce and global rivalry have given close attention to comprehensive quality management theories, methods, tools, and techniques. International competitiveness, according to Juran (2001), necessitates greater levels of quality attainment by firms. Total quality management is a major field of management study. Total Quality Management has been used in a variety of manufacturing industries, and there is now increased interest in the service sector, including non-profit organisations (Nwabueze, 1998). However, the service industry differs from the manufacturing industry in several ways, including service intangibility, simultaneity of production, delivery, and consumption, perishability, variability of customer expectations, and customer participation in service delivery, but the main goal of both sectors is to achieve customer retention and satisfaction. Several writers have presented total quality management models. However, the majority of the models are based on theories and methods borrowed mostly from the manufacturing business, where this has been successfully implemented in recent decades.
Furthermore, overall quality management has become the management industry's buzzword. It has been defined in a variety of ways. Total quality management is defined by the International Standard ISO 8402, Quality Management and Quality Assurance-Terminology, as a management approach centred on quality, based on the participation of all its members, and aiming for long-term success through customer satisfaction and benefits to all members of the organisation and society (Ljungstrom&Klefsjo, 2002). According to Temtime and Solomon (2002), total quality management seeks continual improvement in the quality of an organization's processes, people, products, and services. Total quality management is also a systematic management technique that strives to increase customer value by establishing and continuously improving organisational processes and systems (Kartha, 2004). The focus is on staff participation and empowerment, as well as customers and customer happiness.
Continuous improvement, top management leadership dedication to the objective of customer pleasure and retention, employee empowerment, and customer focus are the foundations of overall quality (Ugboro&Obeng, 2000). Total quality management entails defining and supporting an organization's culture through achieving consistent customer retention and satisfaction through an integrated system of tools, methodologies, and training (Sashkin& Kiser, 1993).
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