The effects of total quality management implications on customer satisfaction and customer loyalty: an empirical study in the Taiwanese security industry

Abstract

Taiwan has achieved financial liberalisation and reduced many monetary control measures. When a market transforms into a buyer's market, entrepreneurs face highly competitive situations and should provide a type of enterprise value to attract customer attention. However, few studies have examined total quality management (TQM) and how the security industry can promote customer satisfaction and loyalty. The priorities of service providers should be developing a comprehensive TQM system, understanding customer needs and reducing the frequency of service gaps to achieve customer satisfaction and loyalty. Therefore, this study focuses on service industry angles for the negotiable securities industry and whether these angles affect the degree of customer satisfaction and loyalty through the use of TQM. This study included 516 security industry customers in Taiwan as the participants, applying structural equation modelling by using LISREL 8.51 to perform analyses. The customer satisfaction variable, as shown by the TQM variable adjustment, positively influences customer loyalty. [Received 2 August 2014; Revised 15 February 2015; Revised 3 August 2015; Accepted 30 May 2016]