MNO2609 Assignment 5 Semester 2 2024 | Due September 2024
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Course
Department of Operations Management (MNO2609)
Institution
University Of South Africa (Unisa)
Book
Operation Management
MNO2609 Assignment 5 Semester 2 2024 | Due September 2024. All questions answered with references.
Question 1
1.1. Quality starts with understanding customer needs and ends when those needs are satisfied.
In view of this statement, explains quality.
1.2. A development of quality concept rega...
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Question 1
1.1. Quality starts with understanding customer needs and ends when those needs are satisfied.
In view of this statement, explains quality.
Quality is fundamentally about understanding and meeting customer needs. It starts with a deep
comprehension of what the customer requires, whether it's a product or service, and involves a series
of processes to ensure these needs are met effectively. Quality encompasses various dimensions such
as product-based quality, where the focus is on the features and attributes of the product, and
user-based quality, which hinges on customer satisfaction after using the product. Managing quality
requires an organization to align its processes and standards to meet customer expectations
consistently, striving for excellence in every aspect. Ultimately, quality is achieved when the
customer's needs are fully satisfied, creating a positive perception and trust in the product or service
provided.
(Study Guide - Page: 2)
1.2. A development of quality concept regarding customer and their satisfaction results in
customer loyalty. Research shows that focus on customer loyalty can provide several commercial
advantages. Describe commercial advantages.
Focusing on customer loyalty brings several commercial advantages to a business. One key
advantage is the enhancement of customer retention, which leads to a steady stream of repeat
business, thereby ensuring consistent revenue. Loyal customers are also more likely to engage in
positive word-of-mouth, effectively becoming brand ambassadors who attract new customers at no
additional cost to the company. Moreover, maintaining a loyal customer base reduces the need for
extensive marketing expenditures aimed at acquiring new customers, thus lowering overall
marketing costs. Additionally, loyal customers often show less sensitivity to price increases,
allowing companies to maintain or even improve profit margins without losing business. Finally,
customer loyalty fosters a stable relationship that can provide valuable feedback, enabling
continuous product or service improvements .
(Study Guide - Page: 8)
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