IMPACT OF TOTAL QUALITY MANAGEMENT PRACTICES ON CUSTOMER RETENTION AND SATISFACTION
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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, delightedcustomers (as seen in customer retention and satisfaction), and empowered employees. Costs can be lowered by reducing errors, reducing rework, and reducingnon-value added work. Higher quality can also equate to higher revenues through satisfied customers, increasedmarket share, improved customer retention, more loyal customers, and premium prices. Customers continue todemand higher quality goods and services. Delighted customers purchase over and over again, advertise goodsand services for the company, and check first when they are going to buy anything else to see what is offered bythe 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 improvementof the process are thus not just better quality and the long-range improvement of market-position, but alsogreater productivity and profit. Improvement of the process increases uniformity of output of product, reducesmistakes, and reduces waste of manpower, machine-time, and materials. Kaynak (2003) suggested that apositive 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:
- To examine the impact of total quality management practices on customer retention and satisfaction.
- To examine the approaches to the philosophy of total quality management.
To determine the factors affecting the practice of total quality management in companies
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