The main objective of this study is to investigate the relationship between quality management and customer satisfaction of Golden Penny Flour Mills of Nigeria Plc Survey research design was used and data were collected through primary source by using questionnaire and face to face interview.
Quality is one of the four major performance characteristics that companies can use to appeal to customers and to distinguish themselves from their competitors. Consumers of goods and services generally seek the greatest value, that is, the maximum amount of quality they can obtain per naira, in the price range they plan to spend. Other things being equal, a company that can provide its goods or services with superior quality can often gain market share from competitors who do not provide equal levels of quality (Barde 2013). This increased volume can enable a company to operate with economies of scale and to make more profit. The point made above is supported by an analysis of Profit Impact of Market Strategy (PIMS) data from over 2000 business units in some 200 companies. A business unit is a component of a company that has a distinct set of products, customers, and competitors (Gale and Klavans 2001). An estimate of quality relative to that of the business units’ competitors showed a strong positive correlation to relative market share. The business unit Return on Investment (ROI) and return on sales (ROS) also had a high positive correlation with relative quality. Basically, customers decide to purchase the best-quality goods or services in the competing price range (Saka 2017). Over time this is reflected in the business units’ market share. Improved quality is often advantageous even if it does not increase a company’s market share. There are some niches and market where high-quality items can command higher prices than other products (Ozigbo 2010). The Profit Impact of Market Strategy (PIMS) data showed that the units with the highest relative quality rankings obtained a price that was about 8 percent higher than the units with the lowest relative quality rankings. If a higher perceived level of quality can be achieved at a cost that is less than the increase in price, quality has a favourable impact on profit, even without generating an increase in market share (Ayuba 2002). Happily for the companies in the profit impact of market strategy (PIMS) database, achieving high customer-perceived quality did not result in a higher direct cost. This study intends to investigate the relationship between total; quality management and customer satisfaction for Golden Penny Flour Mill of Nigeria Plc.
The hypothesis tested through the use of chi-square statistical tool revealed a positively strong relationship between quality management and customer’s satisfaction of Golden Penny Flour Mills of Nigeria Plc. Base on the findings of this study the researcher recommended that management of Golden Penny Flour Mills of Nigeria Plc should maintain and improve its current policies of quality management. This will go a long way in sustaining the strong positive relationship that currently exists between, the company’s quality management and customer’s satisfaction.