Page 87 - DMGT524_TOTAL_QUALITY_MANAGEMENT

Total Quality Management

Notes
Example: Many customers identify with Polo Ralph Lauren. They identify with the
brand because the brand identifies them and their friends. From a consumer’s perspective the
brand equity associated with Polo leads to customer loyalty.

Notes CRM must reach beyond the idea of the rational consumer and strive to establish
feeling of closeness, affection, and trust as true emotional bonding is often based on trust
and respect.

Trust exist when one party has confidence that he or she can rely on the other exchange partner.
People feel comfortable with familiar brands and well known situations that have been rewarding.
With simple repetition we become familiar with a brand, store, company, Web site, or search
engine. We develop habits that result in continuity. One’s history with the company influences
one’s habits.

Example: Wal-Mart is known for everyday low prices while another department store,
such as Nordstrom, may be known for excellent customer service.
Thus, perceptions of the company’s historical image can impact customer intentions, loyalty
and likelihood of buying.
Self Assessment

Fill in the blanks:
9. Building customer …………………… is the basic platform of relationship formation.
10. ………………… try to understand if the discrepancy between expectations and performance
is large or small.

Case Study The AXA Way: Improving Quality of Services

“ f you want to innovate, you must always do so in a cost-effective, predictable way,
and for that you must master your processes. Excellent manufacturers know how
I to do this. We will, too”

—Claude Brunet, Member, AXA Management Board in 2005
“This (AXA Way) is a powerful tool that harnesses all of the internal energies we have to
mobilize in order to step up the pace of our quest for operational excellence.”

—Henri de Castries, Chairman, Management Board, AXA Group in 2003
The case discusses the implementation of process improvement technique called ‘The
AXA Way’ in AXA, a France based insurance and wealth Management Company. In a span
of two decades, AXA went in for several mergers and acquisitions and gained global
presence. In order to improve the quality of its services, the company launched ‘AXA
Way,’ which involved the application of DMAIC principles. The AXA Way was a continuous
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