Dynamic Effects of Quality Improvement on Mobile Phone Manufacturing System

Based on a real-world dataset, we developed multivariate time-series model to compare dynamic impacts of quality improvement, apology, compensation and communication on customer satisfaction, after a serious quality failure of mobile phone manufacturing system. The empirical results innovatively reveals that apology-based recovery efforts are the least effective in salvaging customer satisfaction of manufacturing system, with the shortest decay and lowest buildup intensity. In contrast, quality improvement is the most effective, with the highest buildup and longest decay but slowest buildup toward the peak impact point. Compensation has a moderate and stable impact over time. Communications’ impact on customer satisfaction of manufacturing system builds up the quickest, though with mild endurance and magnitude. These findings extend quality improvement literatures in the context of mobile phone manufacturing system

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