The impact of total quality management on consumer goods sales
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ABSTRACT
Customer happiness is an asset that must be safeguarded and maintained just like any other enterprise asset. The management of an organization, like Fan Milk Nigeria Plc Ibadan, must have methods that encourage customer satisfaction in service delivery. The purpose of the study was to investigate the impact of quality management methods on customer satisfaction at Fan Milk Nigeria Plc Ibadan. Specific objectives of the study were determining how training and development, customer orientation, continuous improvement, and leadership styles impact consumer product customer satisfaction. A descriptive research design was utilized for this investigation. The study’s target demographic consisted of Fan Milk Nigeria Plc Ibadan’s management and department leaders, as well as support employees and customers. 312 respondents represented the entire target population. The study utilized stratified sampling to guarantee that all instances were adequately represented, and simple random sampling to pick respondents. 175 responders constituted the sample size. This study collected data through the use of a questionnaire. Quantitative data was analyzed using descriptive statistics, such as the mean and standard deviation, and was displayed as tables, frequencies, graphs, and charts. The association between research variables was determined using multiple regression analysis. The study found that training and development, customer orientation, continuous improvement, and leadership styles had a positive and statistically significant effect on customer satisfaction at Fan Milk Nigeria Plc Ibadan. The conclusion of the study is that the company provides training and development programs to its employees so that they all acquire comparable skills and knowledge. Customer orientation is crucial for improving customer happiness, and customer orientation techniques largely impact time-based productivity.
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FIRST CHAPTER
INTRODUCTION
1.1 Background of the study
Quality management is a method for improving quality, efficiency, consumer loyalty, and productivity throughout a whole organization (Gharakhani et al. 2013). The use of value management techniques enables organizations to improve their internal efficiencies, which is regarded as a prerequisite for becoming competitive in the global marketplace. Kaynak (2011) recognizes TQM as a cyclical, ongoing activity. It is prevalent to the extent that organizations are able to identify problems and effectively resolve them.
Firms that use a quality management methodology focus on achieving and sustaining high-quality results by using administrative practices as data sources and quality performance as results (Flynn, Schroeder & Sakakibara, 2014). In addition, these authors indicate that TQM is often used as a multidimensional method for assessing administrative performance, where both financial and non-financial variables are given equal weight. The advantages of implementing quality management methods can be seen in higher organizational effectiveness and operational system efficiency.
The dynamic environment in which businesses operate, characterized by new technology and competitors, has compelled organizations to adapt for the best and sustain commercial operations (Fine, 2014). Bergman & Klefsjo (2010) note that the most essential component of customer retention is recognizing the customers, their requirements, and their expectations, and then satisfying or exceeding those expectations. As a result, continuous improvement can be utilized to decrease wastage and influence selections regarding future modifications.
Customer satisfaction is at the heart of every business concept and objective that focuses on creating value for customers, anticipating and managing their expectations, and demonstrating the capacity and responsibility to meet their demands. Dominic and Guzzo (2010) assert that the provision of high-quality services and customer satisfaction are crucial factors for the growth and development of any firm. Consequently, the supply of high-quality services is crucial for achieving sustainable organizational performance.
According to Kotler (2000), customer satisfaction is a person’s emotion of pleasure or unhappiness coming from a product’s perceived performance. The amount of customer satisfaction may vary, however, based on the client’s past experiences and their current circumstances. According to Changhong (2008), there are a number of factors that contribute to customer satisfaction, including but not limited to: friendliness, service quality, good value, courtesy, knowledgeable and helpful customers, competitive price, service quality, and prompt service.
Oluseye et al. (2014) quote Hansemark and Albinson (2004), who define customer satisfaction as the entire customer attitude toward a service provider or the gap between customer expectation and customer perception regarding the fulfillment of certain wants, requirements, aspirations, or objectives. According to Fornel et al. (1996), customer satisfaction is an outcome of purchase and use arising from the buyer’s comparison of the benefits and cost of the purchase to the anticipated outcomes.
Quality management (QM) is a systematic method to quality improvement for the management of an entire organization, with the aim of enhancing performance in terms of quality, productivity, customer satisfaction, and profitability (Gharakhani, Rahmati, Farrokhi & Farahmandian, 2013). The application of quality management strategies enables firms to increase their internal efficiencies, which is a precondition for becoming competitive on the global market. According to Sousa and Voss (2012), quality management is exemplified by the organizational techniques that managers employ to achieve corporate enhancements. The important success components of a quality management strategy are customer happiness, which leads to customer retention, increased employee engagement, quality leadership, process control, and process improvement.
Because the corporate world is growing more competitive and bringing new challenges to firms, training and development are essential in the current business environment. Employee training continues to be a major factor in determining job satisfaction (Batool & Batool, 2012). According to Jehanzeb and Bashir (2012), firms who provide training and development programs for their employees enjoy a high level of employee satisfaction and a low rate of employee turnover. The employee training and development program has many advantages for the workforce.
1.2 Definition of the Issue
Customer satisfaction is an asset that must be measured and maintained similarly to any other asset in an organization. Fan Milk Nig. Plc is a manufacturer of consumer goods whose primary goal is to fulfill the needs of their clients. Customer satisfaction index (CSI) reveals that where customer happiness is high, quality service, a range of goods and services, polite complaint resolution, and satisfying customer expectations are commonplace. Kim (2016) observes that in organizations with ineffective management techniques, employees are unmotivated and hence produce subpar results. This might result in lethargy, quitting a job, low class attendance, unhappiness, poor performance, parental irritation, and unrest among students and instructors, among other undesirable outcomes.
Fan Milk Nig. Plc has been implementing quality management practices in an effort to increase customer satisfaction, but has encountered a number of obstacles, including high employee turnover, a lack of understanding of customer expectations, a lack of customer outreach, a lack of consistency, and a dearth of skilled customer service professionals. The college has not yet attained the desired level of customer satisfaction despite its extensive use of quality management.
The study by Daniel (2017) examined the effect of total quality management techniques on the operational performance of commercial banks in the state of Ebonyi and discovered that effective overall quality management results in high operational performance for commercial banks. However, the study relied on a purposive sample and was limited to commercial banks. The study by Ngambi and Nkemkiafu (2015) studied the effect of overall quality management on the organizational performance of a business and determined that only employment training and empowerment have a significant effect on financial performance and corporate social responsibility. However, an explanatory research strategy was adopted for this study.
The study by Belay, Helo, Takala, and Kasie (2011) examined the effects of quality management practices and concurrent engineering on business performance and discovered a direct correlation between total quality management and concurrent engineering and the improvement of a company’s business performance. However, the study was qualitative and based on a single example, which does not yield definitive results. Under this assumption, the purpose of this study is to determine how quality management methods such as customer orientation, training curriculum, leadership style, and enhancement of services, facilities, and processes impact customer satisfaction at Fan Milk Nigeria Plc in Ibadan, Nigeria.
Enhanced customer satisfaction is believed to be significantly connected with enhanced customer loyalty, increased sales and productivity, high new-product success, and innovation, all of which result in a more durable competitive advantage (Wang & Lo, 2013). According to Ooi, Lin, Tan, and Chong (2011), firms struggle to satisfy their customers by providing a variety of goods and services that meet their requirements and exceed their expectations. Organizations must be customer-focused in order to attain this objective.
According to Flynn (2012), a leadership style is the technique through which a leader impacts the behavior of subordinates by personality and intellect as opposed to coercion. Some leaders are more effective than others, depending on their leadership styles, which might affect transformation differently. According to Naidu and Van Der Walt (2015), a successful leadership style impacts change and generates the momentum for transformation. Leadership is regarded as one of the main drivers of corporate success in the present and future. In the current environment, the job of a leader is crucial to the success of an organization.
1.3 Research Objectives
The purpose of the study was to investigate the impact of Total Quality Management on the sale of consumer goods (a case study of Fan Milk Nig Plc, Ibadan). Objectives specific
To determine how training and development influences customer satisfaction at Fan Milk Nig. Plc Ibadan.
Determine the relationship between customer orientation and customer satisfaction at Fan Milk Nigeria Plc, Ibadan.
To examine the correlation between continuous improvement and customer happiness at Fan Milk Nigeria Plc Ibadan.
To determine the extent to which Fan Milk Nigeria Plc Ibadan’s leadership style impacts customer satisfaction.
1.4 Questions of Research
The research aimed to answer the following issues:
What effect does training and development have on customer satisfaction at Fan Milk Nigeria Plc Ibadan?
What effect does Fan Milk Nigeria Plc’s customer orientation have on customer satisfaction?
What is the connection between continuous improvement and customer satisfaction at Fan Milk Nigeria Plc Ibadan?
How does the leadership style of Fan Milk Nigeria Plc Ibadan affect customer satisfaction?
1.5 Importance of the Investigation
This research could create useful information not only for the purpose of the study, but also for the administration of Fan Milk Nigeria Plc Ibadan. The college would receive important feedback to assess the impact of the quality management techniques they’ve implemented on student and stakeholder satisfaction. This would go a long way toward assisting them in planning how to reinforce the effective quality management methods and develop new ones to accommodate the changing circumstances. The government would also gain valuable information into areas where they can support the college in becoming an independent brand with a competitive edge.
1.6 The study’s scope
This study focused on Fan Milk Nig. Plc Ibadan’s quality management policies and how they impact customer satisfaction within the organization. These quality management techniques included training and development, customer focus, continuous improvement, and leadership style. Only tutors, non-teaching staff members, administrators, and college students responded to the survey. The data for the study were gathered via questionnaires.
1.7 Research Limitations
This study dealt with a highly sensitive issue touching directly on management and foresees a difficulty in obtaining precise information. Additionally, it may be difficult to exhaust the entire population and conduct a comprehensive examination of the occurrence. It is difficult to determine if the respondents will have been in their positions long enough to have a comprehensive understanding of the institute’s customer satisfaction policies.
The impact of total quality management on consumer goods sales
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