1.1 Background Of The Study
As proposed by Apudo (2010), the manufacturing of high-quality items has been shown to be a major determinant in customer retention in the current day. According to Brown&Eisenhard (1995), the supply of consistently superior and high-quality items over many years of regular usage leads to the additional value of familiarity and shown trustworthiness, which is a result of customer pleasure. Historically, the majority of organizational success has been attributable to the manufacturing of high-quality goods during the previous several decades, and this has depended on their ability to recognize customer requests and rapidly make goods that meet these requirements (Brown et al., 1995). Therefore, product development might be called a company's lifeblood (Hassan, Hamid, Muhammad, & Rahman, 2010). Consequently, according to Connor, Galvin, and Evans (2005), it became necessary for enterprises to grasp the value desired by consumers rather than the value delivered by the product. In order to retain customers, corporations are increasingly seeking to create and produce goods that match their expectations.
According to Nilsson, Johnson, and Gustafsson (2001), corporate organizations spend extensively in quality management systems to assure success in providing high-quality goods and services, resulting in customer satisfaction and retention. Moreover, according to Jun & Cai (2010), commercial organizations usually put a premium on high technology standards and strong customer interactions since they are essential to consumer pleasure. According to Apudo (2010), for companies to survive and grow in a competitive market, they must meet the needs and expectations of customers. This is because what matters most is the importance people put on the experience they get while eating or using a product (Jaafreh and Al-abedallat, 2013).
Studies have shown the relevance of quality product management as a set of coordinated operations that steer and control the product performance of a company in order to attain effectiveness and efficiency. Alternatively, the significance of this collection of processes is to ensure the availability of high-quality items to clients, which is the basis for customer retention. In addition, Michael and Grend's (2019) research on product quality and customer retention in Ghana indicated that product dependability, perceived quality, and brand trust are the most influential factors on customer retention and brand loyalty. Consequently, there is little doubt that excellent goods have a significant influence in consumer retention and happiness.
1.2 Statement Of The Problem
According to William and Patrick Baldasare's (2007) research, meeting the demands of consumers is a
Rather than being primarily a marketing or design problem, product development is a multidisciplinary activity that requires inputs from almost all organizational roles.
However, three roles are vital to the product development process. According to William and Baldasare, Patrick (2007), they include marketing, design, and production, all of which are focused at providing clients with high-quality goods.
Unfortunately, noncompliance with the processes and modus operandi of quality control management implementation has impeded the adoption of quality management systems by most firms. Despite focusing on small-scale enterprises in developed countries, a number of studies on quality control management and client retention have concluded that the capacity of a manufacturing organization to consistently provide high-quality goods is crucial to its survival. As customers are now exposed to a myriad of options, the business climate in the present day has grown highly competitive. In order to prevent rivals from taking them away, businesses are attempting to retain their clients and ensure their loyalty (Chalotra, 2012). In addition to other factors that may impact customer retention, the significance of product quality cannot be emphasized. The most fundamental definition of a quality product is one that satisfies the expectations of the consumer. According to Jun (2010), consumers are loyal to companies that effectively and consistently satisfy their needs by offering high-quality items. In order to retain existing consumers and attract new ones, it is essential for manufacturing businesses to address issues with product quality. In light of the aforementioned, the goal of this research is to examine the effect of product quality on manufacturing enterprises' customer retention.
1.3 Objective Of The Study
This study's primary and overarching objective is to investigate the effect of product quality on manufacturing businesses' customer retention. In particular, the investigation will;
Analyze the connection between product dependability and customer retention.
Analyze the connection between product durability and client retention.
Analyze the connection between product conformity and client retention.
1.4 Research Hypotheses
In the course of this investigation, the validity of the following assertions will be evaluated:
There is no association between product reliability and customer retention that is statistically significant.
There is no association between product durability and customer retention that is statistically significant.
There is no association between product conformity and customer retention that is statistically significant.
1.5 Significance Of The Study
Although the presentation of quality goods as a major aspect in retaining customers is not a novel topic in the business world, some organizations continue to disregard it. Consequently, this research will educate and remind manufacturing organizations of the necessity to manufacture excellent goods and maintain high quality standards on the market in order to continuously please their consumers and prevent losing them to rivals.
In addition, future scholars will utilize it as a review of the relevant literature. This implies that other students who may desire to do research in this field will be able to use this work as a source of literature for critical analysis. Invariably, the results of the research add significantly to the academic body of information about the effect of product quality on customer retention in manufacturing enterprises.
1.6 Scope Of The Study
This research examines the effect of product quality on manufacturing enterprises' customer retention. In addition, the link between product dependability and customer retention, product durability and customer retention, and product conformity and customer retention will be investigated. The research will be done in the state of Enugu, where many manufacturing enterprises will serve as case studies.
1.7. Limitations Of The Study
During the process of conducting this study, the researcher encountered many limitations, including time limits, money constraints, language obstacles, and respondent attitudes.
There was also the aspect of researcher prejudice. In this instance, the researcher's prejudices may have been reflected in the manner in which data was collected, the kind of persons questioned or sampled, and the subsequent interpretation of data acquired. All of these factors have the ability to alter the results and conclusions.
In addition, the conclusions of this research are restricted to the sample population in the study region, thus they may not be applicable to other businesses and locales.
1.8 Definition Of Terms
Product Quality: A product is deemed to be of high quality only if it meets a variety of functional requirements for the customer.
Customer Retention refers to the capacity of a business or product to retain its customers over a certain time frame.
PRODUCT QUALITY AND CUSTOMER RETENTION IN NIGERIAN MANUFACTURING COMPANIES