Impact of Total Quality Management (TQM) Strategy on Attracting and Retaining Customers in a Financial Service Organization

Abstract

Total Quality Management (TQM) has been practised in diverse industries from manufacturing to services. But its important in banking sector has attracted only few researchers. By providing the best service quality in Banks higher organizational performance will be expected. So customer satisfaction plays a major role to survive in the intense competition. The present research attempts to close the gap of relationship between TQM and customer satisfaction. So the objective is to find out the impact of TQM on customer attraction in an organization. This research will provide constructive information that helps the practitioners to precisely identify areas of concerns and take corrective measures to enhance their level of customer satisfaction. Knowledge in this area will allow managers of the banking organization to direct their resources adequately in improving the more important contributors of customer satisfaction. The study is based on the primary data. Primary data were collected using questionnaires. Fifty (50) survey questionnaires were administered to (50) respondents. Secondary data were obtained from unpublished materials, textbooks, websites etc. Descriptive statistics were made using chi-square to analyze data. Findings indicate that service quality and all its dimensions have significant and positive association with customer  satisfaction and customer loyalty. First Bank of Nigeria Limited has significant impact to Nigeria's economy with unpreceedented growth in its business activities. Therefore this study has been specifically conducted to look into this phenomenon and seek empirical justification in this regard by considering service quality as the main contributory factor towards customer attraction and retention in financial organizations.