Optimizing Food Safety and Quality in MSMEs through Customer Feedback Integration and TQM Strategies

Abstract

The purpose of this study, \"Optimizing Food Safety and Quality in MSMEs through Customer Feedback Integration and TQM Strategies,\" is to determine whether or not customer feedback integration has any significant impact on improvements in food safety and quality in MSMEs. Although feedback collection is a common phenomenon, MSMEs frequently lack the systematic processes necessary to convert findings into workable operational plans. The study assesses consumer attitudes towards food safety and quality, the contribution of regulatory compliance (such as ISO and FSSAI) on trust, and consumer willingness to pay for high quality food items. It also analyses the feedback systems implemented by MSMEs and their degree of congruence with the principles of Total Quality Management (TQM). By testing the hypothesis that feedback integration does not significantly impact food safety and quality, the study explores the extent to which structured feedback mechanisms influence MSME operations. Findings are expected to offer actionable insights for MSMEs, enabling them to adopt customer-centric approaches, enhance compliance, and compete effectively in the food industry. This study enhances the overall understanding of TQM in MSMEs by investigating the overlooked potential of organized feedback systems to promote sustainable growth and address evolving customer expectations.

Introduction

Context and Problem

Global food systems are under increasing pressure due to population growth, urbanization, and limited agricultural land expansion. This has raised concerns about food safety and quality, particularly in developing countries like India, where Micro, Small, and Medium Enterprises (MSMEs) play a major role in food processing. However, many MSMEs struggle with resource constraints, lack of formal quality systems, and inconsistent enforcement of food safety laws. As a result, adulteration and food safety lapses remain serious public health issues.

Importance of Food Safety

Food safety is essential for public health and economic stability. Governments, including India’s FSSAI, have initiated campaigns like Eat Right India to promote safer food and raise awareness. Still, compliance among small businesses remains inconsistent.

Role of Total Quality Management (TQM) and Customer Feedback

TQM, supported by theories from Crosby, Deming, and Juran, emphasizes continuous improvement, feedback integration, and customer-focused processes. Feedback mechanisms are particularly powerful tools to identify gaps in quality, promote accountability, and reinforce trust. International certifications (FSSAI, ISO 9001, etc.) also help enhance credibility and operational excellence.

Research Aim and Design

The study aimed to assess how customer feedback integration and TQM principles impact food safety and quality in Indian MSMEs.

Key Objectives:

1. Understand consumer perceptions about MSME food products.

2. Examine the influence of certifications (ISO, FSSAI, etc.).

3. Investigate willingness to pay for safe, high-quality food.

4. Evaluate the role of structured feedback systems.

5. Identify methods used by MSMEs to collect and use feedback.

Methodology:

• Cross-sectional study in Maharashtra.

• Primary data from 135 consumers and 15 MSME owners using structured questionnaires.

• Analytical methods: Descriptive stats, cross-tabulations, chi-square, and regression.

Key Findings

1. Consumer Priorities:

   • Majority of consumers value food safety and quality highly.

   • Many have had negative experiences, indicating inconsistency in MSME standards.

   • Educated consumers are more quality-conscious.

2. Certification Impact:

   • Consumers widely recognize FSSAI and ISO certifications.

   • Certifications influence buying decisions but don’t guarantee perceived quality.

   • All surveyed MSMEs had certifications and reported positive impact on trust and sales.

3. Willingness to Pay:

   • Many consumers are willing to pay 5–20% more for certified, quality-assured food.

   • Willingness is higher among more educated groups.

   • Signals an opportunity for MSMEs to segment and target premium customers.

4. Effectiveness of Feedback:

   • Consumers who gave feedback were more likely to believe it leads to product improvement.

   • Chi-square test (χ² = 37.85, p < 0.001) confirmed significant association between feedback and belief in quality improvement.

   • Many MSMEs with structured feedback systems showed better product enhancements.

5. Feedback Practices in MSMEs:

   • Common channels: social media, surveys, direct communication.

   • MSMEs using 3+ feedback methods were more likely to act on customer suggestions.

   • Key challenges: cost, complexity, lack of systems, low consumer engagement.

   • Most valued feedback: taste, shelf life, packaging.

Conclusion

This study highlights that while structured feedback systems and credible certifications do significantly improve MSME food quality and safety, deeper challenges persist at the ground level. Too often, quality is enforced only when food inspections are expected, and many of the poorest, least-aware citizens including children and families unknowingly regularly consume MSME breads, biscuits and snacks without ever checking for expiry or certification or any quality award. In reality, products from large corporations often contain fewer questionable additives than many small-scale MSMEs. Yet, MSME foods quietly reach far and wide: not just to local households, but into the hands of street vendors, school canteens, office and hospital cafeterias places where consumers seldom question the source. As a researcher who has witnessed these realities firsthand, I had come to believe true progress demands not just systems and standards, but genuine accountability and awareness at every step, from the grassroots seller to the last consumer. And yes there is a scope for research and innovation in the field of holistic food production for ever growing population which is not addressed yet, TQM induced certifications and awards are the first step if that is initiated then only then can the promise of safe, high-quality food become a reality for all.

References

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Copyright

Copyright © 2025 Raghunandan R. Shrivas, Dr. Sonal S. Chandak. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.