From Total Quality Management to Perceived Value: An Industrial Lebanese Perspective

Abstract:

The lack of studies evaluating the bearing of TQM on customer perceived value is surprising whether internationally or in Lebanon. This paper assesses this relationship in the Lebanese industrial packaging industry. For this end, a qualitative multiple case study methodology was implemented using two questionnaires, one addressed to certified suppliers and another addressed to their certified and non-certified customers to ensure all viewpoints are covered. The Marketing and the Quality Managers represented the suppliers, whereas the Purchasing Managers represented the customers. The obtained results were interesting because the certified firms, whether suppliers or customers, validated that quality certifications do enhance the resulting customer perceived value by first improving customer trust, customer expectations and the product and service quality as perceived by the customer and eventually customer perceived value. They equally underscored that a quality certification does not justify higher prices, which would generate a reduction in the obtained value. As to the non-certified customers, they mainly agreed that the certification of their suppliers does not impact the value they are getting from doing business with those suppliers. Hence, their trust, expectations, and received product and service quality remain unchanged. As to their reaction regarding the idea of having a certified supplier charge higher prices, they asserted that they would not continue doing business with such a supplier, yet if they did, the outcome would be a decrease in the obtained value.