Question

1- What are the difference between ethics and morality? Whey these two concept are important particularly in the context of quality management?

2- Why it is important to measure customer retention? It is believed that customer satisfaction is the critical component in customer retention. However, customer satisfied is not always a customer retained. Why?

Answer 1

1. Ethics and morality are the terms which specifically relates to how a particular thing or action could be termed as "right" or "wrong". While these two terms could be hsed interchangebly, these two terms have different meanings and play a crucial role in quality management. Ethics refer to rules that are being provided by any of the external source, for example the code of conduct that is being followed in the organisation to maintain the highest quality to serve the customers. To maintain that level of quality, the standard is to be achieved. Thus, all the qualitative standards are being dotted down on a formal document and is being used in the organisation as a way to ensure qualitative management which belongs to the ethical code of comduct. On the other hand, morality comes from an individual's own principles and his means to which he looks towards his life, his values and how he follows it. It tells what for himself/herself is right or wrong. For example, an employee while providing a service to customer themselves think that this added value would increase the customer satisfaction and is a right action. Thus, he follows the same action to increase the quality because he himself thinks that it is right and no one other is asking him to do. These are the moral values coming from within to achieve the qualitative factors in management.

2. Customer retention means how much customers are remained for the organisation and would also further demand the goods in the coming future times. Customer retention is the very important concept for every orgaisation as studies have said that the cost of getting a new customer is 7 times more than retaining customer. Thus, if a customer is satisfied with your product or services and is retained to buy your products in the future also, it is a very profitable and sustainable action for the organistaion. Thus, to measure how much customers are retained or how to make them retained is important. It is believed that customer satisfaction is one critical component for customer retention which is true because a customer won't go again to that organisation if his needs or wants are not fulfilled. If the organisation is fulfiling the needs and providing a higher rate of customer satisfaction, he would probably go back to the organisation which is what customer retention is, what Amazon does for say. However customer satisfaction does not Always lead to customer retention because several other factors also play a role to decide whether the customer would retained or not. For example, the price of the product, the economical factors, availability of substitutes, income of the person and other seasonal as well as external factors play a major role in deciding as well if the customer would get retained or not.