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IMPACT OF PRODUCT QUALITY ON CUSTOMER RETENTION IN MANUFACTURING COMPANIES IN NIGERIA

CHAPTER ONE

INTRODUCTION

Background Of The Study

According to Apudo (2010), the manufacturing of high-quality items has been proved to be a primary component in consumer retention in the modern period. According to Brown&Eisenhard (1995), consistent provision of great and quality items over many years of regular usage contributes to the additional value of acquaintance and established trustworthiness, which is a result of customer happiness. Most organizational success in the previous decades has been due to the effective manufacturing of quality products, which has been dependent on their ability to identify consumer requests and quickly make products that meet these needs (Brown et al., 1995)

As a result, product development can be regarded as the lifeblood of any company (Hassan, Hamid, Muhammad, & Rahman, 2010). As a result, Connor, Galvin, and Evans (2005) identified the necessity for companies to understand the value required by customers rather than the value delivered by the product. In order to retain customers, businesses are increasingly seeking to create and manufacture items that match their expectations.

As a result of the aforementioned, according to Nilsson, Johnson, and Gustafsson (2001), businesses invest substantially in quality management systems to ensure success in delivering high-quality products and services, which leads to customer satisfaction and retention. As a result of the aforementioned, according to Nilsson, Johnson, and Gustafsson (2001), businesses invest substantially in quality management systems to ensure success in delivering high-quality products and services, which leads to customer satisfaction and retention. Furthermore, according to Jun & Cai (2010), commercial organizations usually place a high value on high technological standards as well as strong customer interactions because they are crucial in the process of customer satisfaction. Consumer requirements and expectations must be satisfied, according to Apudo (2010), for firms to survive and grow in a competitive market.

This is because what counts most to customers is the value they place on the experience they have when they consume or use items (Jaafreh and Al-abedallat, 2013).

According to studies, quality product management is defined as a set of coordinated actions that guide and govern an organization’s product performance in order to attain effectiveness and efficiency. On the other hand, the importance of this collection of operations is to ensure that customers have access to high-quality items, which is the foundation for client retention. Furthermore, according to Michael and Grend (2019), a study on product quality and customer retention in Ghana indicated that produ

Statement Of  The Problem

According to William and Baldasare, Patrick (2007), satisfying customers’ desires is a

product development problem rather than a solely a marketing or design issue, Product development is an interdisciplinary activity that necessitates contributions from practically all organizational functions.

 

Three functions, however, are essentially fundamental to the product development process. These, as posited by William and Baldasare, Patrick (2007), include marketing, design, and manufacturing, all of which are geared toward delivering high-quality products to customers..

 

Unfortunately, most organizations’ adoption of quality management methods has been hampered by noncompliance with the procedures and modus oparandi of quality control management implementation. As a result, businesses are working hard to keep their clients and maintain customer loyalty in order to avoid being snatched up by competitors (Chalotra, 2012). It is impossible to exaggerate the importance of product quality, among other factors that may influence customer retention. A quality product, at its most basic level, is one that meets the customer’s expectations. Consumers are loyal to brands that successfully and regularly meet their requests through the availability of high-quality items, according to Jun (2010). As a result, if manufacturing companies want to keep current customers and win new ones, they must address problems that affect product quality.

Objective Of The Study

The study’s main goal is to look into the effect of product quality on customer retention in manufacturing enterprises. The study will, in particular:

1. Investigate the link between product dependability and client retention.

2. Investigate the link between product longevity and client retention.

3. Investigate the link between product compliance and customer retention.

Research Hypotheses

During the course of this study, the validity of the following propositions will be tested:

H01: Product reliability and client retention have no meaningful link.

H02: Product durability and client retention have no meaningful link.

H03: Product conformity and client retention have no meaningful link.

Significance of the study

Despite the fact that the presentation of excellent products as a major component in client retention is not a new topic in the business world, some businesses still ignore it. As a result of this research, manufacturing organizations will be reminded and educated about the need of producing excellent products and maintaining high quality standards in the market in order to keep their customers satisfied and prevent losing them to competitors.

It will also be used as a literature review by future scholars. This means that other students interested in conducting research in this field will be able to access this work as available literature that may be critically reviewed. Invariably, the study’s findings make a significant contribution to the body of scholarly knowledge.

Scope Of The Study

The study looks at how product quality affects customer retention in manufacturing firms. It will also look at the links between product reliability and customer retention, as well as the links between product durability and customer retention and product conformity and customer retention. The research will be carried out in Enugu State, with various manufacturing enterprises being chosen as case studies.

 Limitations Of The Study

The researcher faced some challenges in conducting this study, including time limits, money constraints, language barriers, and the attitudes of the respondents.

Furthermore, there was a component of researcher prejudice. The researcher had some biases, which may have shown up in the manner the data was gathered, the kind of people questioned or sampled, and how the data was evaluated afterward. It’s impossible to overestimate the impact of all of this on the findings and conclusions.

 

Furthermore, because the results of this study are limited to a sample population in the study area, they may not be applicable to other firms or places.

Definition Of Terms

Product Quality: A product is only considered to be of high quality if it meets a number of standards for consumer use.

Customer Retention: This refers to a company’s or a product’s capacity to keep customers for a set amount of time.

Reference

Quality management practices and customer retention in micro and small firms in Nairobi city-county, Kenya, M.O. Apudo, M.O. Apudo, M.O. Apudo, M.O. Apudo, M.O. Apudo, M.O.

V. Chalotra, V. Chalotra, V. Chalotra, V (2012). Customer satisfaction with products from small businesses.

S. Hassan, A. Hamid, N. N. Muhammad, and N. Rahman (2010). Factors influencing a manufacturing company’s purchasing decisions for industrial items.

A.B. Jaafreh and A.Z. Al-abedallat (2013). The Impact of Quality Management Practices on Jordanian Organizational Performance

M. Jun and S. Cai (2010). The relationship between internal service quality and its dimensions, as well as internal customer satisfaction, is being investigated.

L. Nilsson, M. D. Johnson, and A. Gustafsson (2001). Customer pleasure as a result of excellent procedures.

Product Quality and Consumer Brand Loyalty, Naata Michael Nwiepe and Miebaka David Grend (2019).

G. O’Connor, K. Galvin, and T. Evans (2005). The role of technology in electronic marketing and marketing communications. Kimmel Marketing Communications has taken an unique approach to marketing communications.

The Asymmetric Impact of Negative and Positive Attribute-Level Performance on Overall Satisfaction and Repurchase Intentions, William T. and Patrick Baldasare, 2007.

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