Quality Management Paradigm and Customer Loyalty in Firms Listed at Nairobi Securities Exchange in Kenya

Abstract

The purpose of this study was to establish the relationship between quality management paradigm and customer loyalty in manufacturing and service companies listed in Nairobi Securities Exchange. The study adopted a statistical cross-sectional research design in which a census survey and stratified random sampling was used. Primary data was collected from 20 firms listed in NSE and the analysis done using SPSS to generate the descriptive statistics of the data. Correlation and regression analysis was performed and the study found that there is a positive correlation of 0.912 between customer loyalty and customer value and a positive correlation of 0.974 between customer loyalty and quality management paradigm. When regression analysis was performed, the study found that there is a good linear association between the dependent and independent variables used in the study. Further analysis found that the benefits of quality management paradigm include; reduced costs, customer satisfaction, increased efficiency, competitive advantage, elimination of defects, organization development, enhanced shareholder and stakeholder value, reduced complaints, increased job security, and increased financial performance. This study therefore, recommends that organization to fully adopt the quality management paradigm in order to improve and maintain customer loyalty, which will in turn result to the benefits.