Impact of Total Quality Management Practices on Customer Retention and Satisfaction
CHAPTER ONE
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.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
THEORETICAL FRAMEWORK
There are different theories related to Total Quality Management for example, Invitational theory, Traditional Learning Theory and Theory of Constraint. In an attempt to provide a sound theoretical underpin for this study, this paper adopts the theory of Constraint. The Theory of Constraint (TOC) was first presented in 1984 by Goldratt in his revolutionary book, the goal. TOC provides the methodology to define what to change, what should be changed to and how to effect the change to continuously improve the performance of an entire system. TOC like TQM treats improvement as an ongoing process. It must not replace TQM but rather be used in helping the company to find out problems in its implementation and focus the TQM efforts toward organizational goals (Zadry & Yusof, 2006). TOC is a new concept which is growing in recognition and popularity. The literature presented so far has shown that TOC can complement TQM strongly in helping to focus the parts of a system that need process improvement(TOC based TQM).The principles of TOC-based TQM serve as a guideline to help in understanding how to focus efforts in maximizing profitability through the implementation of TQM. It has the objective of establishing an effective management system designed to implement the process of continuous profit improvement while meeting the necessary condition of good quality. (Stein, 1997) According to Adeoti (2008), TQM is a collection of principles, techniques, processes and best practices that over time have been proved effective. Most of the world-class organizations exhibit the behaviors that are typically identified with TQM. Any organization that wants to improve its performance would be well served by selecting a model and conducting a self-assessment.
Chapter Three
Research Methodology
Research Design
The research design adopted in this research work is the survey research design which involves the usage of self-designed questionnaire in the collection of data. Under the survey research design, primary data of this study will be collected from Britvic plc, London in order to determine impact of total quality management practices on customer retention and satisfaction. The design was chosen because it enables the researcher to collect data without manipulation of any variables of interest in the study. The design also provides opportunity for equal chance of participation in the study for respondents.
Population of Study
The population of study is the census of all items or a subject that possess the characteristics or that have the knowledge of the phenomenon that is being studied (Asiaka, 1991). It also means the aggregate people from which the sample is to be drawn.
Population is sometimes referred to as the universe. The population of this research study will be Seventy-five (75) staffs of Britvic plc, London
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION
This chapter is about the analysis and presentation of data collected from the field through questionnaire. The analysis of the data with particular question immediately followed by the presentation of findings.
As mentioned in chapter three, 50 questionnaires were administered and 50 were retrieved and necessary analysis was carried out on them and presented as follows:
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain impact of total quality management practices on customer retention and satisfaction. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of total quality management practices on customer retention and satisfaction
Summary
This study was on impact of total quality management practices on customer retention and satisfaction. Three objectives were raised which included: 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 and to determine the factors affecting the practice of total quality management in companies. In line with these objectives, three research questions and research hypotheses were formulated and three null hypotheses were posited. The total population for the study is 75 staffs of Britvic plc, London. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study.
Conclusion
It concludes that TQM has had a positive, although relatively low impact on the operation of hotels and customers’ satisfaction. The paper also identified external influences that can limit the operation of TQM in Britvic plc, London. However, Customer retention and satisfaction practice is very vital for firms to move beyond satisfying both existing and new customers where the practice is proved to be an important tool to improve firm’s performance particularly from their non-financial aspects. Hence, the practice should become a compulsory management tool for retailers to sustain in the competitive retailing sector. The findings of this study alongside the implications given are expected to enlighten the practices of customer retention within Britvic plc.
Recommendation
Britvic plc should devout more attention to Customers’ satisfaction and retention by identifying their needs through feedback mechanism. Also, TQM culture should be spread through training of Britvic plc employees and above all, the Leadership of Britvic plc should be committed to TQM.
References
- Adeoti, J. O. (2008). Application of total quality management to health care delivery systems in Kwara State, Nigeria. A doctoral thesis submitted to the department of business administration, University of Ilorin, postgraduate school, Nigeria. 1-64.
- Al Manhawy, A. (2013). TQM Critical Success Factors in Hospitality Industry and their Impact on Customer Loyalty: A Theoretical Model. International Journal of Scientific & Engineering Research. 4(1), 25-37.
- Anvari, A & Moghimi, R. (2011). The strategic Approach to Exploration Review on TQM and Lean Production. Journal of Contemporary Management. 1- 12.
- Askarany, D. (2006). Technological Innovation, Activity Based Costing and Satisfaction. Auckland: University of Auckland. 1-232.
- Chamchong, P., & Ichon, W. (2005). Relationship between Customer Satisfaction and TQM: A case study in the Thai Conveniences Store. Journal of Management Science Research. 22(05), 839-856.
- Cooper, I., Roben, S., Maskell, G., & Brian, D. (2008) How to Manage Through Worse Before Better. Sloam Management Review. 101(14), 15-31
- Coyle, O. (2012). Highlights in Hospitality Industry in Nigeria. Economic Monitor.1(10), 1-8
- Dale, G. (1997). Characteristics of Organisations not Committed to Total Quality Management. Manchester: University of Manchester.
- Drury, C. (2004). Management and Cost Accounting. Hampshire: Cengage Learning Geographical location of Ilorin (2015). Map of Ilorin, Kwara State, Nigeria, Available on line at https://www.google.com.ng/search?g=geographical+location+of+ilorin+nigeria
- Gupta, A., McDaniel, J., & Herath, S. (2005). Quality Mangement in Service Firms: Sustaining structures of total quality service. Managing Service Quality. 15(4), 589-402.
- Isaksson, R. (2012).Total quality management for sustainable development Process based system models. 632- 644. Available at www.emeraldinsight.com/1463-7154.htm
- Juang, W. & Wang, F. (2006). Total Quality Management in Singapore: A Case Study. Singapore: Hadollf press.
- Juneja, D., Ahmad, S., & Kumar, S. (2011). Adaptability of Total Quality Management to Service Sector. International Journal of Computer Science & Management Sciences. 11(02), 93-98.
- Lucey, T. (1996). Management Accounting. New York: Continuum. Milakovich N. (2003). Analysing Human Factor Perceptions of TQM Dimensioning using Multivariate Priced Total Quality Management: A case study. New Delhi: Kataria and son.
- Moghadam, S., Sayadi, E., & Moharer, A. (2013). Study Strategy of Total Quality Management in the Hotel Industry of Sports in Iran. Global Advanced Research Journal of economics, Accounting and Finance. 2(1), 018-026.
- Mubaraki, M. (2008). Application of Total Quality Management Principles in Small and Medium Firms. European Scientific Journal. 8(25), 788-857.
