Total Quality Management (TQM) for Sustainable Customer Loyalty

Literature Review

An Overview of Total Quality Management (TQM)

Traditionally, quality is viewed as "the degree of conformance to a standard". Total Quality Management (TQM) is a philosophy and driving force that characterize the basis for successful organization and to ensure the survival of organizations especially in the competitive economy of today. Margaret & Oluwakayode opined that TQM is a system of management that focused on the philosophy that every stakeholder must be committed to promoting stimulating continuous improvement and high standards of work in a company's operations.

Customer Satisfaction and Loyalty

Customer satisfaction develops customer's loyalty towards products and service of organization. It is the attitudes and experience of the individuals that are in closest contact with customers that determine whether or not customers are willing to return to the company and are satisfied which in turn impacts the service quality delivered. One of the most vital factors that contribute to the formation of customer loyalty is customer satisfaction.

The Relationship between TQM and Customer Loyalty

TQM is a quality-based strategic tool of management. It promotes enterprise-wide quality through a strong focus on environment, dynamics and customer orientation, For an organization to achieve competitive advantage, it has to differentiate itself in terms of cost and quality of products and services; that is, if TQM is effectively evidence in the quality of product and low pricing, customer loyalty is automatically be enhanced.

The Deming's Theory of TQM

Deming's theory was propounded in 1986 and this theory of TQM rests upon fourteen points of management. Deming believes that the ability of an organization to provide quality service requires a change in philosophy. Deming perceives that TQM as a set of management practices that enable companies to increase their productivity and quality. He also identified fourteen points which include the adoption of a new philosophy; ability to create constancy of purpose for improving products and services; stop reliance on inspection to attain quality among others. By implications, the theory allows individuals and organizations to plan and continually improve themselves, their relationships, processes, products, and services.