Literature Review: TQM's Impact on Customer Satisfaction and Loyalty

This literature review examines the multifaceted relationship between Total Quality Management (TQM) and customer satisfaction, drawing on various academic sources. It explores the core concepts of TQM, including its focus on customer commitment, continuous improvement, and the integr...Read More

Literature review

Table of Contents
Literature review .............................................................................................................................3
REFERENCES................................................................................................................................1

Literature review
Theme 1: Concept of TQM
In accordance to Anil and Satish, (2019), total quality management referred as the
management approach for the company that is centred on a quality on the basis of commitment
& participation of external and an internal customers. It aims at gaining long run success
strategically by way of customer satisfaction and the benefits to each and every member of an
enterprise and towards community. It is reflected as the strategy of top management that aims at
embedding an awareness of the quality in an organizational processes. TQM is stated as an
internal part that helps in making strategic decision. This method requires that firm need to
maintain standard quality in every aspect of the business. It ensures that the things are been done
right at first time and that the waste & defects are been eliminated from the operations.
Bouranta and et.al., (2019), reviewed several characteristic and the nature of TQM which
depicts that it is been initiated by the top management by developing an environment that is team
oriented and seeks for creating a culture that is quality oriented which in turn prevents problem
and improves the process continually. It seems as the continuous process as it helps in producing
a quality service and the product. Under this all the workers need to work constantly as the team
in common direction to attain effectiveness and efficiency in the process of an entity. It is
counted as the part of a strategic planning as TQM policy is been made for long run planning and
this policy need to be a part of the strategic planning in getting desired results. An end result of
the TQM is counted as complete customer satisfaction by providing them with the quality
services and the products. This process considered as team work as success in respect of the
quality standard and culture regarding team formation.
Moreover, TQM relates with continuous improvement in the quality by way of delivering
the quality services and the product. Through TQM, all the processes are been developed in an
improved manner. All employees are involved in the programme regarding TQM for the
purpose of improving quality aspect at the workplace. Furthermore, every employee is seen as
responsible for success of TQM as there commitment for producing quality services and
products is very important.
Theme 2: Contribution and theories relating to total quality management that leads to
customer satisfaction

Pambreni and et.al., (2019), accounted that TQM is the broader term that relates to
controlling quality of product. It is the coordination of the efforts that are directed towards
improving satisfaction of customers, increased participation of an employees, strengthening the
supplier partnerships and providing an atmosphere of constant quality improvement. It is the
method of thinking about an organizations and the way in which people must relate and work
with them. It is not only counted as a tool but also a philosophy that is anchored in belief that
long run success depends on the uniform commitment to the quality in each and every sectors of
the company. Management system of Deming's was seen as philosophical on the basis of
constant improvement towards the perfect ideal. It has reflected on an actions that an
organization takes for achieving total quality management that includes creating consistency for
improving the service or the product, adopting new philosophy, improving system of the service
and the production consistently etc. Thus, this is depicted as the contribution that are made
towards gaining total quality management in the process of an entity that helps in attaining
higher satisfaction among the customers.
Theme 3: Concept of customer satisfaction
In opinion of Nguyen and Nagase, (2019), customer satisfaction is been defined as
measurement which identifies the way that company should adopt in order to make their
customers satisfied with capabilities, services and the products. In other words it is the part of the
customer experience which exposes behaviour of supplier on an expectation of the customers.
Satisfaction of the customers is referred as an overall significance of an impression about
suppliers by customers. This impression reflects an impression that the customer is making in
respect of supplier right from communicating to supplier prior doing any kind of marketing for
posting a delivery options, services, managing queries and post delivery complaints.
At the time of this process customer comes around a working environment of several
departments and kind of the strategies included in an entity. This helps customers in making
strong opinion about supplier that finally results in dissatisfaction or a satisfaction. An
organisation need to communicate and interact with the customers on regular basis for increasing
level of customer satisfaction. Higher satisfaction level in customers reflects higher sentimental
attachment of the customers with a particular brand of the product and with supplier. This in turn
enables in making strong and the healthy bonding between suppliers and customers. Thus,

customer satisfaction is counted as an important phenomena where every supplier focuses on
establishing renounced position in global market and in enhancing profits of the business.
Hallencreutz and Parmler, (2019), stated that customer satisfaction facilitates a leading
indicator in relation to buying behaviour and the loyalty. Satisfaction of the customers data are
seen as among most frequently gathered indicators of a market perceptions. It is considered as
the buzzword that is used by business people for gaining success of an enterprise in the current
days. As because of increased competition in each and every type of product, it seems as very
difficult or challenging for an organization in retaining customers for a longer time period and in
satisfying the needs of customers. Thus, companies presence and existence in the market for a
long term is mainly conditioned with that of the satisfaction of customers. They acts as the
major factor of an existence and development of the company within a market. Satisfaction
involves not only a feeling attached with purchasing process, however, also includes an
atmosphere before and after an execution of the purchases.
Theme 4: Relationship between satisfaction of the customers and quality management
It has been analysed by Wang, Chou and Lai, (2019), there exist a positive relationship
with between quality management practices and the level of customer satisfaction. Execution of
the quality management practices like TQM helps the company in improving satisfaction of the
customers. It means that with improvement in the quality of the process, the customers deemed
has more and more satisfied. Often quality of the service is been positioned as antecedent of the
customer satisfaction. Satisfying the needs of customer is seen as an integral part for delivering
the quality along with confirming to the requirements. It has been represented by the author that
quality management practices must be such that it meets needs of customer. With an adoption of
effective practices with regards to quality management,an enterprise can develop its product or
service in efficient manner as per the needs, specification and preferences of the customers
which in turn leads to increased level of customer satisfaction. Higher the quality management in
the process, higher the customer satisfaction can be attained for the firm.
Bouranta and et.al., (2019), presented that service quality attributed a positive and the
direct effect on the customer satisfaction level. However, perception of the customers, perceived
value and quality act as an essential indicators or predictors to the customer satisfaction that in
turn results in loyalty of the customers. It has also pointed out that service quality attributed an
influence a relative attitudes of customer satisfaction level and in fostering loyalty towards the

brand. Each and every service quality feature has a different effect on the customers in term of
their satisfaction. Thus, customer satisfaction and quality management are closely related with
each other as the former highly depends on the latter which means that facilitating quality
products or services helps an organization to achieve its objective regarding satisfaction of the
customers in an effective and efficient manner. This also assist the company in keeping the
customers attached towards it brand and could be able to resist the customers in switching
towards the other brands. Organization must determine its service quality standards which
enhances the satisfaction of the customers in aligning resources of the company to the customer
needs for yielding better and higher returns on the investment.
Theme 5: Impact of Total quality management on customer satisfaction
Abbas, (2020), identified that TQM acts as the major practice or technique that is
adopted by the firm in order to achieve satisfaction of the customers towards its services and the
products. TQM is the management philosophy with the vision aiming in building the corporate
culture that is been characterized by an increased level of customer satisfaction by facilitating a
constant improvement within which all employees needs to actively participate. This method is
been employed for improving productivity and quality of the services with a hope of improving
typical measures of the business performance. Total quality management poses a positive impact
on the customer satisfaction as it involves continuous improvement I the processes which results
to production of high quality goods and the services. TQM programme are been managed and
planned within the systems are seen as oriented to achievement of the customer satisfaction. It is
the system of an activities that is directed in achieving a delighted customer, low cost, high
revenue and empowered employees.
Chen and Liu, (2019), assessed that delivery of the TQM does not limits to quality
improvement in the product but also involves wider quality aspect. It helps in improving overall
quality, needs and preferences of the customers. Successful implementation of the TQM contains
benefits relating to improving quality and reducing the wastage and reducing the poor quality
cost like scrap, warranty, late deliveries and a replacement. Effective TQM practices could
generate a marked improvements in service as well as quality of the products that results to
increased level of the customer satisfaction and profitability of an enterprise. With establishing
motivated customer oriented approach, internal service quality levels would be more and more
favourable. It has also been found that depending upon participation and empowerment of an

employees , delivering quality service with high employee morale and the satisfaction is
important for the firm. It is reflected as the way of managing the business, people and processes
for ensuring the the customers remain completely satisfied at each and every stage, externally &
internally. TQM mainly focuses on customers that is satisfying their wants and exceeding or
meeting to an expectation of the customers. Customers who are seen as dissatisfied could decide
in discontinuing buying of the goods and the services, complain to third party or company and
finally engaging in negative type of communication which affects the brand reputation and
relationship of company with the customers.
As per Pambreni and et.al., (2019), companies require to gather information
continuously by way of focusing on the group, customer interviews and market survey for the
purpose of staying in connection with wants of the customers. Total quality management is been
considered as the most useful approach in improving customer satisfaction and in receiving
attention among the researchers and the managers. TQM substantially increased the level of
customer satisfaction around diverse cultural and an industrial settings. Firm could strive for
more of a globalised level of the customer satisfaction which involves cost competitiveness and
an environmentally sound process and the products by using TQM approach within its work
environment.

REFERENCES
Books and journals
Abbas, J., 2020. Impact of total quality management on corporate green performance through
the mediating role of corporate social responsibility. Journal of Cleaner Production. 242.
p.118458.
Anil, A. P. and Satish, K. P., 2019. Enhancing customer satisfaction through total quality
management practices–an empirical examination. Total Quality Management & Business
Excellence. 30(13-14). pp.1528-1548.
Bouranta, N. and et.al., 2019. The key factors of total quality management in the service sector:
A cross-cultural study. Benchmarking: An International Journal.
Bouranta, N. and et.al., 2019. The key factors of total quality management in the service sector:
A cross-cultural study. Benchmarking: An International Journal.
Chen, C. M. and Liu, H. M., 2019. The moderating effect of competitive status on the
relationship between customer satisfaction and retention. Total Quality Management &
Business Excellence. 30(7-8). pp.721-744.
Hallencreutz, J. and Parmler, J., 2019. Important drivers for customer satisfaction–from product
focus to image and service quality. Total quality management & business excellence. pp.1-
10.
Nguyen, T. L. H. and Nagase, K., 2019. The influence of total quality management on customer
satisfaction. International Journal of Healthcare Management. 12(4). pp.277-285.
Pambreni, Y. and et.al., 2019. The influence of total quality management toward organization
performance. Management Science Letters. 9(9). pp.1397-1406.
Pambreni, Y. and et.al., 2019. The influence of total quality management toward organization
performance. Management Science Letters. 9(9). pp.1397-1406.
Wang, K. Y., Chou, C. C. and Lai, J. C. Y., 2019. A structural model of total quality
management, work values, job satisfaction and patient‐safety‐culture attitude among
nurses. Journal of nursing management. 27(2). pp.225-232.
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