Impact of Product Quality on Customer Retention in Manufacturing Companies in Nigeria
CHAPTER ONE
Objective Of The Study
The major and general aim of this study is to examine the impact of product quality on customer retention in manufacturing companies. Specifically, the study will;
- Examine the relationship between product reliability and customer retention.
- Examine the relationship between product durability and customer retention.
- Examine the relationship between product conformance and customer retention.
CHAPTER TWO
REVIEW OF LITERATURE
INTRODUCTION
Our focus in this chapter is to critically examine relevant literature that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.
Precisely, the chapter will be considered in three sub-headings:
- Conceptual Framework
- Theoretical Framework
CONCEPTUAL FRAMEWORK
Concept Of Product Quality
Product quality can also be defined as an extent to which a product succeeds to meet the needs of the customer (Lemmink & Kasper , 1994). According to product based approach, the quality is the root of economics and the variation in quality of product are the reflection for differentiation in quality (Garvin, 1984). Product quality is one of the important tools to maintain the competitive advantage in market which is designed to undergo the product development process to achieve the consumer satisfaction and upgrade the quality in performance (Benson et al., 1991; Flynn et al., 1994). To be more specific and precise, further study from different researcher shows that along with the competitive advantage the product quality is also a basis for strategic advantage, which implies that an enhanced performance can be determined when a product quality is improved (Daniel and Reitsperger, 1991 and Terziovski et al. 1999). Ultimately, this suggests that a real product quality is/should be visible in an improved quality performance (Dunk, 2002). The study of a product quality and its extrinsic influential characteristic with reference to customer retention, the image of product itself is more essential than the physical quality of product (Shasharudin et al. , 2010). Moreover, they note in their findings that a better and a good customer relationship is stronger when there is a product awareness and these both factors are critically important for shaping the customer perception. According to Zeithaml (1981), search properties include such traits like color, style, price, fit, and smell. Here, search properties those characteristics of product and service attributes which can be easily compared and observed by the customers before they make the purchase of product or services. Moreover, he finds that products (e.g. goods) have more search qualities than services, with more experience and credence qualities. Here, credence properties are those characteristics of product and service attributes that cannot be differentiated even after the product, or service, has been purchased and consumed. Similarly, experience properties are those characteristics of product and service attributes, which can only be evaluated after purchase and use of the product, or the actual consumption of the service is done (Kenyon, Sen, 2012).
Concept Of Retail Product Quality Scale
Dabholkar et al. (1996) state that measures which are developed to study service quality of a purely service environment such SERVQUAL does not work when it comes to service quality for retail stores. Therefore, he came out with his model called the Retail Service Quality Scale (RSQS). This scale is capable of measuring five different dimensions of store service quality which is developed considering 28 items, 11 are taken from SERQUAL and remaining 11 items are discovered by qualitative research. The dimensions are namely as:
- Physical aspects
- Reliability
- Personal interaction
- Problem solving
- Policy According to Dabholkar et al. (1996), the above service characteristics of retail store are structured hierarchically, where every element is further divided into more understandable features. These dimensions are explained as following:
- Physical aspects – Layout, comfort, aesthetics elements and style of the store are part of this dimension.
- Reliability – fulfilling promises and service performance.
- Personal interaction – the behavior of service personnel such being courteous, helpful, confidence and trust in customers.
- Problem solving – helping customers in case of returns, exchanges and complaints.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
SUMMARY
In this study, our focus was the impact of product quality on customer retention in manufacturing companies in Nigeria using ANAMMCO manufacturing company, Enugu State as case study. The study specifically was aimed at highlighting the relationship between product reliability and customer retention, examine the relationship between product durability and customer retention, and examine the relationship between product conformance and customer retention. A total of 77 responses were validated from the enrolled participants where all respondent are drawn from staff of ANAMMCO manufacturing company.
CONCLUSION
Based on the finding of this study, the following conclusions were made:
- There is a relationship between product reliability and customer retention
- There is a relationship between product durability and customer retention.
- There is a relationship between product conformance and customer retention.
RECOMMENDATION
Based on the responses obtained, the researcher proffers the following recommendations:
- That manufacturing companies should be concerned about the quality of their products. This will help them to maintain a desirable customer base.
- That manufacturing company should produce quality products that the consumers expect. Products that can stand the taste of time and compete favorably in the market place.
REFERENCES
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