IMPACT OF PRODUCT QUALITY ON CUSTOMER RETENTION IN MANUFACTURING COMPANIES IN NIGERIA
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IMPACT OF PRODUCT QUALITY ON CUSTOMER RETENTION IN MANUFACTURING COMPANIES IN NIGERIA
Chapter one
INTRODUCTION
1.1 Background of the Study
In the current day, the manufacturing of high-quality items, as proposed by Apudo (2010), has been proved to be a primary determinant in consumer retention.
According to Brown and Eisenhard (1995), consistent provision of outstanding and quality products over many years of regular usage contributes to the added value of acquaintance and established trustworthiness, both of which are byproducts of customer happiness.
Historically, most organisational success has been ascribed to the effective creation of quality products in recent decades, which has been based on their ability to anticipate market requests and rapidly manufacture products that meet these needs (Brown et al., 1995).
As a result, product development might be regarded the lifeblood of any company (Hassan, Hamid, Muhammad, & Rahman, 2010). As a result, as identified by Connor, Galvin, and Evans (2005)
organisations must grasp the value required by customers rather than the value offered by the product. To retain customers, organisations are increasingly seeking to create and manufacture products that match their expectations.
In light of the aforementioned, Nilsson, Johnson, and Gustafsson (2001) state that corporate organisations invest extensively in quality management systems to ensure success in delivering high-quality products and services, resulting in customer satisfaction and retention.
Furthermore, as mentioned by Jun and Cai (2010), corporate organisations typically place a high value on high technological standards as well as strong customer interactions because they are crucial in the process of customer satisfaction.
According to Apudo (2010), in order for businesses to survive and thrive in a competitive market, they must satisfy their customers’ needs and expectations. This is because what matters most is the value customers place on the experience they have while consuming or using items (Jaafreh and Al-abedallat, 2013).
According to research, quality product management is a set of coordinated operations that steer and regulate an organization’s product performance in order to attain effectiveness and efficiency.
The significance of this collection of operations, on the other hand, is to ensure the availability of high-quality items to clients, which acts as the foundation for customer loyalty.
Furthermore, Michael and Grend’s (2019) study on product quality and customer retention in Ghana found that product reliability, perceived quality, and brand trust are the most important factors influencing customer retention and brand loyalty. As a result, there is no doubting that excellent products have a significant impact on consumer happiness and retention.
1.2 Statement of the Problem
According to William and Patrick Baldasare (2007), meeting customers’ desires is
Product development is more than just a marketing or design problem; it is an interdisciplinary activity that requires contributions from almost every organisational function.
Three functions, however, are vital to the product development process. According to William and Patrick Baldasare (2007), they include marketing, design, and manufacturing, all of which are aimed at providing clients with high-quality products.
Unfortunately, most organisations’ adoption of quality management methods has been delayed by noncompliance with the procedures and mode of operation for quality control management implementation.
Several studies on quality control management and client retention (while focusing on small-scale enterprises in developed countries) have revealed that a manufacturing organization’s capacity to keep its customers through constant delivery of quality products is crucial to its survival.
In today’s world, the business environment has become more competitive, as consumers are exposed to a myriad of options. As a result, organisations are working to retain clients and establish customer loyalty in order to prevent competitors from stealing them (Chalotra, 2012). The significance of product quality, among other factors influencing client retention, cannot be understated
. The simplest definition of a quality product is one that meets the customer’s expectations. Consumers, according to Jun (2010), are loyal to brands that successfully and consistently meet their needs by providing high-quality items.
As a result, if manufacturing companies want to keep and win new customers, they must address issues that affect the quality of their products. In light of the aforementioned, the goal of this study is to look into the impact of product quality on customer retention in manufacturing enterprises.
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