Business performance and its relationship to customer satisfaction and enterprise quality management

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Year of publication 2018
Type Article in Proceedings
Conference Proceedings of the International Scientific Conference of Business Economics, Management and Marketing 2018
MU Faculty or unit

Faculty of Economics and Administration

Keywords financial and nonfinancial performance; quality management; customer satisfaction; product returns
Description Paper presents results of the preliminary analysis of the data from survey aimed at finding if low-financially performing enterprises manage non-financial performance and quality of products differently in comparison to high-financially performing enterprises in the context or product returns management. Several variables were involved to question various aspects of non-financial performance and quality management. Financial performance was evaluated indirectly through the combined score of the four variables (sales, revenue growth, costs and profit) measuring financial situation of enterprises in the last year and compared with the competition rated by the respondents. Only 92 questionnaires were used for the analysis, for this reason the findings cannot be generalized. Median of financial performance was used to divide enterprises into two independent samples. Mann Whitney U test was applied to identify differences between two groups of enterprises. Results show that all non-financial performance indicators stand behind the difference between low and high financially performing enterprises together with existence of the formalquality policy, Total Quality Management philosophy implementation, customer satisfaction being priority, use of more methods and tools for customer satisfaction tracking, continuous monitoring of customer satisfaction and product improvements and innovations based on the information form dissatisfied customer represent the specific features of quality management for the purpose to minimize product returns and leading to better financial performance.
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