Theoretical background of customer satisfaction customer. Where customer effort starts an interaction, outcomes finish them. Ganiyu department of business administration, university of lagos, lagos, nigeria. Businesshotel karelia abstract the economic which crisis started at the end of 2014 in russia affected the hospitality industry significantly, the amount of tourists decreased, and issues of. After liberalization, privatization andglobalization, there is intense competition and the world has become a global village. Organizations calculate the customer satisfaction score. The first, service management literature, proposes that customer satisfaction influences customer loyalty, which in turn affects profitability. Expectation disconfirmation theory edt posits that expectations, disconfirmation, and performance influence customer satisfaction. This result was accomplished using a quantitative and qualitative research method by means of a questionnaire. The aim of this paper is to present an original customer satisfaction survey conducted in the. The main paradigm that marks the literature dedicated to consumers satisfaction is the expectation disconfirmation paradigm.
The literature pertaining to relationships among customer satisfaction, customer loyalty, and profitability has two dimenstions. The theory attempts to define what drives loyalty in customers and can. The importance of customer satisfaction in relation to. Nigeria international journal of managerial studies and research ijmsr page 44 oliver 2000 suggests that customer satisfaction is the core philosophy of marketing strategy of any organisation and plays a key role in an. Customers derive satisfaction from a product or a service based on whether their need is met effortlessly, in a convenient way that makes them loyal to the firm. What about the relationship between customer satisfaction and service quality dimensions. Three essays on the customer satisfactioncustomer loyalty. Passenger satisfaction can be defined as a judgment made on the basis of a specific service encounter.
This chapter explores what can be understood of customer satisfaction, customer loyalty, customer retention, perceived values, complaints and corporate image. The thesis presents best practices and the relevant recommendation on how to improve trivsel customer satisfaction level. Customer satisfaction with a companys products or services is often seen as the key to a companys success and longterm competitiveness. Giese and cote defining consumer satisfaction focus of the response the focus identifies the object of a consumers satisfaction and usually entails comparing performance to some standard. A case study of a reputable bank in oyo, oyo state. It has been proven by some researchers that service quality is related to customer satisfaction. Customer satisfaction and switching cost show a positive effect on customer loyalty. There are a few ways to measure customer satisfaction, but the most common and effective ways are to simply ask your customer.
The relationship between customer satisfaction and service. Administration customer satisfaction, a central phenomenon in marketing advanced consumer behavior theory mktg 703 prof. Others used service quality dimensions to evaluate service quality. To measure service quality and customer satisfaction in the hotel industry, there are some models. Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Apecs, our comprehensive customer satisfaction measurement program, is designed to make understanding your strengths and weaknesses simple and makes taking. Therefore, customer satisfaction must be translated into a number of measurable parameters directly linked to peoples job in other words factors that people can understand and influence deschamps and nayak, 1995. The study presents a strong background on the theories of customer satisfaction measurement and interpretation. The contrast theory of customer satisfaction predicts customer reaction instead of reducing dissonance. Maintaining customer loyalty is obviously a key goal for any business.
Because customer satisfaction is so important in the banking industry, measuring the customer experience and identifying ways to improve in this area is essential. Theory customer satisfaction by philip kotler if you looking for theory customer satisfaction by philip kotler if you are areader who likes to download vw theory customer satisfaction by philip kotler pdf to any kind of device,whether its your laptop, kindle or iphone, there are more options now than ever before. The basis of understanding the consumer s satisfaction or dissatisfaction respectively resides in peoples ability of learning from their past experiences. Customer satisfaction evaluation and recommendations for a marketing communication. Price, service quality, product quality showed a positive effect on customer satisfaction. Its also important to measure success by asking for. However, the few empirical investigations in this area. Example of a theoretical framework on customer satisfaction thomassen 2003, p. The customer loyalty theory, based on the consideration of some variable demographics, was developed over years of research studying the habits of consumers.
Pdf on jan 1, 2008, atila yuksel and others published consumer satisfaction theories. Outcomes are the events or results that a customer experiences at the end of a given interaction with a brand. Keywordscustomer satisfaction, customer disconfirmation, perception. It covers customer satisfaction concepts, theories and models, service quality concepts and models and customer behavioural intentions referral concepts and models. In the context of relationship marketing, customer satisfaction is often viewed as a central determinant of customer retention. First, the approach assumes that there is a relationship between expectations and satisfaction, but it does not specify the way in which the expectation disconfirmation can lead to satisfaction or dissatisfaction. Measuring customer satisfaction with service quality using. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Principles of good customer service include speed, transparency and friendliness. Customer satisfaction, product quality and performance of. As stated in the theory of assimilation, customers have a tendency of assimilating or adjusting the. The customer satisfactioncustomer loyalty association is one of the most vital relationships for marketing theory and practice, due to the marketing effectiveness that.
A study of interrelationships and effects in nigerian domestic airline industry rahim a. Hence, customer satisfaction is an important step to gain customer loyalty. Valueprecept theory, the attribution theory, the equity theory, the comparison le vel. Customer satisfaction is defined as the satisfaction of the customer with a product and the business performance as a capability to generate profit. All the business activities of an organization have now shifted their. A lot of theories explaining the nature and the development of consumers satisfaction from various perspectives fall under the umbrella of this paradigm. While information systems researchers have adopted edt to explain user information technology it satisfaction, they often use various edt model subsets. Customer satisfaction has gained importance in the last few years. Supporter of this theory include researchers such as. If customer satisfaction is the goal, then constant feedback is the best way to improve over time. And they should take good care of it because if not, it will deteriorate their customer service, their product, and most importantly, the life of their.
Understanding customer service theory helps businesses to provide superior customer service and meet their goals. Satisfaction involves one of the following three psychological elements. Satisfaction and loyalty are not surrogates for each other. Satisfaction is an overall psychological state that reflects the evaluation of a relationship between the customer or consumer and a company, environment, product or service.
Therefore, satisfaction was examined by the means of a survey using questionnaires, and the performance was measured by financial data. Customer satisfaction is defined as the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services ratings exceeds. Furthermore, it is hypothesized that the tce dimensions can be segmented into affective and cognitive drivers based on the preliminary interviews. Its a psychological state that is measured by the customers expectations. Customer satisfaction measures how well the expectations of a customer concerning a product or service provided by your company have been met. Theory of customer satisfaction ronald van haaften. A lot of theories explaining the nature and the development of consumer s satisfaction from various perspectives fall under the umbrella of this paradigm. The importance of customer satisfaction customerthink. Keywordscustomer satisfaction, customer disconfirmation, perception, discrepancy theory. The theories include the ex pectancydisconfirmation paradigm edp, the. Also, past and present applications of queuing technology and what staffs can do to manage patient or customer queues more. Example of a theoretical framework on customer satisfaction.
Loyal customers mean a reliable revenue stream and a sustained profit. This standard can vary from very specific to more general standards. Customer satisfaction theory customer satisfaction. This chapter presents an overview and critical analysis of relevant literature on the topic. You need to measure customer satisfaction in order to improve it. However, in this study, three most popular and quite complete models which are servqual, holserv and lodging quality index are chosen for analysis. The objective of this chapter is to come to a deeper understanding of customer satisfaction. Businesshotel karelia abstract the economic which crisis started at the end of 2014 in russia affected the hospitality industry significantly, the amount of tourists decreased, and issues of customer satisfaction and new cus. After expectancy, instrumentality is the logical next step in developing motivation. Impact of customer satisfaction on customer retention. Examining two expectation disconfirmation theory models. Satisfaction is a person feeling of pleasure or disappointment resulting from comparing the products to comparing products received performance is or out come in relation to his or her expectations. Customer satisfaction is about assessing customer attitudes about products, services and brands.
Recently many researchers stresses that, customer satisfaction have become an important issue for marketing practitioners because of the rapid business environment. An example of an outcome would be a customer feeling satisfied after a purchase. The contrast theory of customer satisfaction predicts customer reaction. Therefore customer satisfaction postulate as one of the main indicators of. While it was one of the important conclusions is that the services provided to customers have a positive effect and there by get the organization on the customers confidence because there is a strong relationship between. Customer satisfaction csat is a commonly used kpi that tracks how satisfied customers are with your organizations products andor services learn about the. New research on customer satisfaction from harvard business school faculty on issues such as the distinction between understanding and listening to customers, how to determine how much of a ceos time should be spent interacting with customers, and how.
Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass. The two theories that best explain customer satisfaction are disconfirmation paradigm and expectancyvalue concept. In this article the authors will propose a conceptual model that extends the widespread view of a direct and linear relationship between customer satisfaction and customer retention in two ways. Peyton et al 2003 argues that assimilation theory has a number of shortcomings. A theoretical framework of users satisfactiondissatisfaction theories. Not surprisingly, then, the subject of how you maintain customer loyalty has been one that many researchers have looked into. While its always been smart to keep customers happy kotler 2003, the term customer satisfaction became popularized in the 1980s with the total quality movement. The impact of customer satisfaction and relationship. The main paradigm that marks the literature dedicated to consumer s satisfaction is the expectation disconfirmation paradigm. The importance of customer satisfaction in the banking.
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