The Effect Of Total Quality Management Practice On Customers‟ Retention In Hotel Industry; The Case Of Ambo Town; West Shoa Zone, Ethiopia

Abstract

The long-term viability and success of any organization depends mainly upon how well it understands and effectively meets customers’ requirements. Total quality management is one of the process which is a customer-oriented and aims for continuous improvement of business operations. This study is conducted to assess the effect of total quality management practice on customer retention in hotel industries in Ambo town. Mixed research design was applied and the simple random probability sampling was used to select respondents for data collection. To do the study, cross sectional survey was conducted through questionnaires from employees of the selected hotels .Descriptive statistics such as mean and percentage was used to assess the total quality management implementation level and customer retention status and multiple regression models was used to examine the effect of total quality management practice on customer retention in hotel industries and the result of the study reveals that both total quality management practice and customer retention in hotel industries at Ambo town found at low level. The results of regression analysis, by employing seven total quality management dimensions used to examine the extent of the effect of total quality management practice on customer retention, reveals five (5) dimension(continuous improvement, leadership commitment, supply quality management, customer focus and training of employees) have significant effect on customer retention. To enhance the customer retention levels in hotel industries, the management of the hotels needs to work more on the total quality management aspects.