The Effect Of Product Quality Control On Customer’s Satisfaction (A Case Study Of Cadbury Nig. Plc)

Project and Seminar Material for Marketing

The Effect Of Product Quality Control On Customer’s Satisfaction (A Case Study Of Cadbury Nig. Plc)


This research study examined the effects and possible solutions of product quality control as it affects the ordinary customer using Cadbury Nig. Plc as a case study. The research study was aimed at evaluating the product quality and customer satisfaction on the growth and profitability which the organization achieves. Also, the effectiveness of product control on customer satisfaction was also addressed, and analyzed respectively. This information was analyzed with the aid of SPSS v 18.0 on different tables and simple random sampling technique was used. The study is limited by time, which is the school calendar year, coupled with the cost involved in conducting such enormous task. The findings of the study reveal that there are several quality control checks and balance which should be put in place for thorough and in depth satisfaction of the final customer. It also posits generally three processes to achieve quality at a standard rate, these include: inspection of incoming Raw materials, inspection of work in progress and the final inspection of incoming raw materials. Interpersonal relationship amongst consumer’s using a definite product also contribute to innovation and better quality of a product through purchasing. The study recommended that management should control and maintain equipment used for production in the organization.

Chapter One


1.1 Background of the Study

According to Fagbohungbe (2009) defines production as the “process of designing, operating and controlling a productive system capable of transforming physical resources and human talent into needed goods and services”.

Although, some prefer the label production/operations management, the more global term of production used here is to emphasize that production system generates intangible services as well as tangible goods.

Lawal (2007) states at least four reasons why it is important that you know something about production management, production is a core organizational function. The production function commands the flow of resources through the organization. Society depends heavily on the output of productive organizations and the production function is tied to many serious societal components.

A typical operation or production manager views organizations as productive systems, complete with inputs, a transformation process and output. The transformation process consists of interrelated parts, each depends on the other. Among the important parts of productive systems are these activities listed below, (Enikanselu, and Oyende, 2009)

Product design, production planning, production scheduling, production control, purchasing and material management inventory control, work flow layout and production or out put forecasting and quality control.

Together, these activities let managers carry out their economic function of transforming resources into useful goods and services.

1.2 Statement of the Problems

Most organization have nothing to do with company product policies, which could not be visualized as determinants of the product that could be produced, the goals of the organization have not attained the optimum product line.The changes available resources as well as dynamics of the market conditions. In achieving optimum in product competition, certain variables such as composition of product line, dynamism of product attributes are considerations, the selection and design of the particular products and services offered. It was finalized through assessment of interaction between the original concepts, estimated costs of operation, equipment configurations and alternative job or work crew designs. Capacity planning decisions that also determines the location for warehouse and branches and a growth plan, a supply, storage and logistic system (Afewape 2007)

The mature overall system design was rendered in terms of designs for the modular branches. The component of the design included workflow layout and architectural plans. A labour staffing plan that specified just how each operation is to be carried out, including labour time standards, a materials flow plan and layout and, the central warehouse design including storage layout and logistics supply system, the production operation layout, equipment specification, a schedule for the acquisition of property and the building of branches, and a complete financial analysis (Sanyaolu, 2005).

In analyzing what was done and how it was done, it appears that we employed an interactive design process, involving design and redesign to take to account of various interactions. We employed long-range planning concepts, prediction and forecasting techniques, layout planning, equipment justification techniques, behavioural work concepts, product and service analysis and waiting line methods and concepts (Karimu, 2000).

For an organization to be successful, the conception of the process and facilities product design had to represent an integrated view of the conversion process for the system as a whole. In reviewing the longer-term operation decisions, we must realize that they are very significant to the future of the organization.

The decision set against the basic approach to supply distribution and operations for some time to come and committing the majority of the available capital of the enterprise. The key decision that set the design of the productive system are: The design of the product/service bundle to be offered finalized through an interactive process.

1.3 Purpose of the Study

  1. To examine the effectiveness of product control on customer satisfaction.
  2. To determine the efficient and effective competitive advantage on Customer interest.
  3. To assess new product control development programmes on customer satisfaction
  4. To evaluate the product quality and customer satisfaction on the growth and profitability which the organization achieves.

1.4 Research Questions

  1. What is the effectiveness of product control on customer satisfaction?
  2. Does efficient and effective competitive advantage affect customer interest?
  3. Does new product control development programmes have impact on customer satisfaction?
  4. Does product quality and customer satisfaction affect the growth and profitability which the organization achieves?

1.5 Research Hypotheses

Hypothesis 1
  • Ho: Product quality control will not affect customers’ satisfaction.
  • Hi: Product quality control may affect customers’ satisfaction.
Hypothesis 2
  • Ho: Product quality control has no significant impact on customers’ satisfaction
  • Hi: Product quality control has significant impact on customer satisfaction.

1.6 Significance of the Study

The significance of the study is to ensure that organization create better image for the customer. The study will help the organization in ways of controlling their activities in respect to high product standard. Customer satisfaction with performance measure of the company is another significance of the study.

Hence, the product quality and customer satisfaction survey would give a comparison test to validate programme performance measures with an organization. This study will also be useful to students who patronize the product or service, and the organization about the relevance of product quality control tools as inducing factors to consumer patronage of product and the importance of quality control in everyday activities on campus.

1.7 Scope of Study

The scope of this study is limited to CADBURY NIG. PLC. in order to find out the relationship between product quality control and customer satisfaction. The staff of the company will be used as a study population.

1.8 Limitation of the Study

The research work will be limited to CADBURY NIG. PLC. Especially, the production, sales & marketing, Research and Development and human capital department. The limitations of this study include: Time constraints, Mobility, Financial Constraints and Non-Flexibility of respondents.

1.9 Definition of Terms


Is the financial bargaining of the product. It can be said to be financial rate at which the product sales in the open market.

Market Segregation:

This allows for a market to be segregated by different product variations so that consumer’s are open to different choice in the market area.

Manufacturing Date:

This is the printing or label placed on a product for identification and notification of a particular product manufacturing date. It also carries other details like expiry date, and so on.

Target Consumer:

These are individuals, organization or societies who are in need of various products.

Marketing Strategy:

Is the basic approach that the business unit uses to achieve its objectives and it consists of broad decision on target market/consumers.

Shopping Product:

Are items from which buyers are willing to put forth considerable effort in planning and making the purchase.

Impulse Goods:

Are low price items that are routinely purchases on a specific trip to a store.


An asset of tangible and intangible attributed including packaging, color, price, which the buyers may accept as offering want-satisfaction.


Is the process of designing and producing the container or wrapper for a meeting the prospect face.


Is a name symbol or special design or some combination of these elements that is intended to identify one product from competing ones.


Is the part of a product that carries verbal information about the product or the seller.


Is to give buyers some assurance that they will be compensated in case the product does not perform up to reasonable expectation.

Chapter Five

Summary of Findings, Conclusion, Recommendations, and Suggestions for Further Studies

5.1 Introduction

This chapter summarized the major findings, conclusions, recommendations and suggestions for further studies.

5.2 Summary of Findings

Product quality control varies from industry, some companies have a section or department named quality control department saddled with the responsibility of, cooperating with engineering and other department in product design, in the determination with quality standards, accepting or rejecting purchased items. Inspecting tools and purchased equipment, compiling and issuing of defective work and scrap reports to management and selecting, controlling and maintaining equipment used for production

This department is equipped to carry out the function of quality control works. In textile industries the quality control starts from inspection of raw materials i.e to check the quality of incoming raw materials as they meet the set up standard. There are standard sets for all strategies of production.

Strategies used in an industry vary from industry to industry. Low-priced products will require fewer points/cheaper strategy method and the kind of strategy employed depend on the product. Generally, there are three types of strategy for quality control. Inspection of incoming materials, inspection of work in process. Final inspection, the production process and by weighing the cost of carrying out inspection against the savings in the reduction of scrap. Finished goods generally require examination before storage or shipment. Inspection may range from a mere visual check of appearance to functional involving a test of the product in a trial run operation. The importance of maintaining quality at each selected point or stage of manufacturer and their suitably for checking materials received work-in-progress and finished goods. Inspection can be carried out in the following stages. Inspection of each piece, inspection of samples, simulation inspection. An essential activity within the feedback loop is the collection and analysis of data. This activity falls within the scientific discipline known as statistics.

5.3 Conclusion

Therefore, product quality control process in manufacturing or administration, it is generally acceptable that because of imperfections in the original planning most processes run at a certain level of chronic waste which is the accepted level quality control. Deviations from this zone of quality control depicted by the sporadic spike are generally dealt with by a fire-fighting to return the process to its accepted control limits. The starting point in quality planning is creating process that will be able to meet established goals and do so under operating conditions. The subject matter can be anything, following the planning, the process is turned over to the operating forces. Their responsibility is to run the process at optimal effectiveness. Due to deficiencies in the original planning, the process runs at a high level of chronic waste. Because the waste is inherent in the process, the operating forces are unable to get rid of the chronic waste.

5.4 Recommendation

With regard to the finding of the research a number of problems are evident. These problem were analyzed in the light of the needs of this research and current trends in total quality management on customer satisfaction, it is therefore recommendation from the findings that the following point be considered for overall improvement of the company TQM strategies on customer satisfaction.

  1. The organization should cooperate with engineering and other department in product design, and to determine the quality standards.
  2. The management should accept or reject purchased items for customer satisfaction.
  3. Head of department should inspects tools and purchased equipment in the organization.
  4. The management should control and maintain equipment used for production in the organization.
  5. There should be test and retest of product and services.
  6. Check and balances should be paramount to management.
  7. Quality check should be given first hand treatment.

5.5 Suggested Area for Further Study

In other to enrich the study product quality control will be greatly extended to a personnel problem since employment policies expertise, working conditions, training programmes, remunerations and fall within the portfolio of the personnel.

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