...which I’ll be discussing and evaluating if customers that are satisfied with a supplier and/or their offering will become loyal? According to Giese and Cote (2000), Customer Satisfaction is defined as “A summary affective response of varying intensity with a time-specific point of determination and limited duration that is directed towards focal aspects of product acquisition and/or consumption” While Customer Loyalty is said to be “a deeply held commitment to re-buy or re-patronize a preferred product/service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing” (Oliver, 1999). However, there are two distinctive ways of describing loyalty; One being attitude, whereas different feelings create an individual’s overall attachment to a product, service, or organization (Hallowell, R, 1996). The other being behavioural, which include customer continuing to purchase services from the same supplier, increasing the scale and or scope of a relationship, or the act of recommendation without having an attachment to the product, service or organisation (Hallowell, R, 1996). FIG 1. Reicheld and Sasser (1990) argues that satisfaction leads to loyalty. Reicheld (1995) then goes on to say “the only meaningful measure of satisfaction is loyalty”. This is supported by the service profit chain concept, which establishes relationships between profitability, customer loyalty, and employee satisfaction, loyalty, and productivity (Heskett, J.L et al, 1994)...
Words: 1935 - Pages: 8
...article: Why Customer Satisfaction Still Matters How attitudes, opinions and beliefs come together to form the basis for brand loyalty Perhaps the most disruptive of ideas to hit the market research community in the past several years has been the notion of ditching the long relied upon “customer satisfaction” model that researchers have leaned so heavily upon for years. A wave of recent methodological research has suggested that our five-point, Likert-scaled question “How satisfied were you with your experience?” no longer cuts it. It just doesn’t do an adequate job of predicting future customer spend. This attack has principally been led by proponents of the Net Promoter Score (NPS) method, which argues that it’s not satisfaction that matters, but rather, loyalty. According to studies by NPS architect Satmetrix, utilizing the assigned loyalty metric of how likely a customer is to recommend a brand or product produces predictive models that do a significantly stronger job of forecasting future brand spend than simply asking how satisfied customers were with their experience. As they rightfully argue, plenty of customers will leave a store completely satisfied with their experience, yet remain entirely unlikely to return based upon an abundance of variables that satisfaction models can’t account for. This results in retailers and service providers who sit befuddled in conference rooms across the country, trying to figure out why their high satisfaction scores aren’t...
Words: 1408 - Pages: 6
...and grow their customer base. Banks now understand the value of building relationships with their customers and that they need to provide excellent customer service to them as a means of profitability and survival. Understanding the factors behind customer service and its effect on customer loyalty is an important issue for the retail banking industry. This brings up the question “Does customer service influence customer loyalty?” With that question in mind, the following review acknowledges the importance of customer service to customer loyalty and also looks at what factors influence loyalty. The examination takes a look at service and its quality, and the overall effect it has on customer satisfaction and customer loyalty. The findings conclude a direct association among customer service, service quality, customer satisfaction and consumer bank loyalty. Introduction It is generally agreed that the top 3 constructs of building loyalty are: customer service, service quality, and customer satisfaction. This is especially true in people centric service businesses such as retail banking. In today’s competitive business environment many banks are focusing their efforts on having a loyal customer base. Thus, the question arises, “Does customer service influence customer loyalty?” The following is a review of current literature on the topic of customer service and its effect on customer’s loyalty to their bank. The review has three focuses (I) customer services’ effect...
Words: 1220 - Pages: 5
...Abstract Brand loyalty is one of the most powerful marketing tools available, and it ensures that your products will be desired again. Many consumers develop loyalty to products of all types. Cars, electronics, clothing, and even groceries are often chosen based on prior experiences with particular brands. There are many ways to create and maintain brand loyalty. Three of those ways include rewards programs, customer satisfaction, and advertising. This report covers the definition, creation, and influence of social media on brand loyalty. How Businesses Develop Brand Loyalty All companies strive to create brand loyalty. It is one of the most powerful marketing tools available, and it ensures that your products will be desired again. Many consumers develop loyalty to products of all types. Cars, electronics, clothing, and even groceries are often chosen based on prior experiences with particular brands. How do companies develop this loyalty? In this report I will cover the definition, creation, and influence of social media on brand loyalty. The Hutchinson Unabridged Encyclopedia (2014) defines Brand Loyalty as “the attachment of the consumer to a particular brand, even though that brand may be more expensive than competing brands.” It is a psychological contract between the consumer and the brand, and is the target for all marketers. Consumers tend to develop devotion to specific brands. They buy what they have already bought in the past and opt for the brands that they...
Words: 1175 - Pages: 5
...world, including in Indonesia. Production and price used to be priority of fashion retailers to make sure their profit is increase. These strategies do not work effectively in current since the situation is shifting. Costumers are now more critical. They demand more. Seeing this, fashion retailers cannot risk a big loss by abandoning the satisfaction of customers. Customers now are the key of retailers’ success and failure. Positive customer satisfaction increases customer loyalty that will most likely lead to purchase retention. It also leads to positive word-of-mouth that will invites more customers to the retailers, which also means more profit. Thing will happen in the other way around when it comes to negative customer satisfaction. According to Kotler and Armstrong, there are two ways to gain positive customer satisfaction; they are lowering price and increasing service. At this point, it can be concluded that service quality also takes part in determining the profit of the fashion retailers. Without good service quality, customer can move to competitor easily and spread negative word-of-mouth so that a fashion retailer will lose more customers and also profit. Seeing this situation, it is questioned whether fashion retailers are aware or not to the importance of good service quality in keeping their company run well. It is assumed that international fashion retailers are more aware because they have more experience regarding it. It is also assumed that they have taken service...
Words: 2735 - Pages: 11
...markets brand loyalty generates numerous benefits like erecting barriers to competitors, generating greater sales and revenues, reducing customer acquisition costs, and inhibiting customers' susceptibility to marketing efforts of competitors (Knox and Walker, 2001; Rundle-Thiele and Mackay, 2001). The primary objective of this research is to select three brand loyalty influences (from the twelve) in the article by Moola and Bisschoff (2014) then motivate why the three can be grouped together logically. The secondary objectives are to: * Expand on Moolla's questions by doing a literature study on three brand loyalty influences selected. * Select a company / product of choice to apply questionnaire to * Analyse the data at least on inferential statistical level * Indicate expected outcomes the results will provide * Interpret the results and write a short report on what the data tells you * Apply result to management and managerial decision-making to show the advantage of the analysis. Figure 1.1: The conceptual model Adapted from Moolla (2010:197) 1.2 Hypotheses The following hypotheses were tested in order to assist in meeting the research objectives: H1: There is a relationship between customer satisfaction and customer trust when purchasing a home appliance brand. H2: There is a relationship between customer satisfaction and customer commitment when purchasing a home appliance brand. H3: There is a relationship between customer trust and...
Words: 7148 - Pages: 29
...Role of Service Excellence on the satisfaction of Customers and Customer Loyalty/Service Quality (SQ) Introduction In market private & public sectors banks, Islamic and microfinance banks are functioning. In this situation only those companies can stay alive which offer the most excellent products and services to their customers, because customers have so many options in the same market place and it’s really tough job and banking sector is also the part of this competitive environment. Because banking sector have to become more towards customized their services and creates customer oriented atmosphere to meet the basic needs of their customers and to attract them. "Success of the baking organization starts from retention and loyalty of the...
Words: 2161 - Pages: 9
...service delivery to customer satisfaction and loyalty at sand dunes chalao Beach Resort in Thailand. 1 Chapter one 1.1Introduction. Tourism and hospitality industry is one of the largest industry in the world. It contributes 11% of the total world gross product. The driving forces of the industry include public relations and integration of proper marketing strategy. Public relations refers to the ability of an organization to foster a relationship with their consumers. For an organization to impress their clients it must commit to quality service delivery. Quality service ensures client satisfaction (Sasser). Satisfied clients form a fundamental economic efficiency for a firm especially organizations in the hospitality industry. It ensures client loyalty and thus constant business retention for the firm (Viglon.). 1.2 Background of the study. The tourism and hospitality industry is a service industry. It deals with the retail of high end luxuries. The core drive of such an industry is the ability to market its services in abide to attract new clients. Marketing enable the firm to retain old clients too. To ensure continuity of the business the organization must be able to keep the promises it gives to the clients. This is through delivery of quality services. Adoption of suitable marketing strategy also helps the organization to remain relevant in business. To evaluate the levels of satisfaction of customers in the hospitality...
Words: 2803 - Pages: 12
...questionnaire which we had given to them. At last we express our deepest gratitude to all those who contributed directly or indirectly to bring this report to this final format, because we would never have been able to achieve this by ourselves. Table of Contents ACKNOWLEDGEMENT 1 List of Tables 4 List of Appendix 5 List of Abbreviation 6 Abstract 7 1. INTRODUCTION 8 1.1 RATIONAL OF STUDY 8 1.2 PROBLEM STATEMENT 9 1.3 AIM OF THE STUDY 9 1.4 RESEARCH OBJECTIVE 10 1.5 RESEARCH QUESTION 10 1.6 DELIMITATION OF THE STUDY 10 2. LITERATURE REVIEW 11 2.1 EXPECTED QUALITY OF SERVICES 13 2.2 PRICE FAIRNESS 13 2.3 ANGER INCIDENT 14 2.4 EFFECTIVE ADVERTISMENT 14 2.5 CUSTOMER SATISFACTION 15 2.6 CUSTOMER LOYALTY 15 2.7 CUSTOMER DEFECTION 16 3. CONCEPTUAL FRAMEWORK (HYPOTHESIS) 17 4. HYPOTHESIS 17 5 METHODOLOGY 18 5.1 POPULATION/SAMPLE FRAME 18 5.2 UNIT OF ANALYSIS: 18 5.3 STUDY SETTING: 18 5.4 STUDY TYPE: 19 5.5 TIME HORIZON 19 5.6 RESEARCHER’S STRENGTH 19 5.7 SAMPLE SIZE: 20 5.8 SAMPLING TECHNIQUE: 20 5.9 DATA COLLECTION METHOD: 20 5.10 INSTRUMENT DEVELOPMENT: 20 5.11 DATA ANALYSIS TOOL: 21 5.12 DATA ANALYSIS SOFTWARE: 21 5.13 GANTT CHART 22 6. SPSS WORKING DATA 23 Reliability (Table No 1) 23...
Words: 8244 - Pages: 33
...hypermarket was opened in 2002, at Puchong, Selangor. Today, Tesco Malaysia has nearly 15,000 employees and 43 stores in Malaysia. Tesco Malaysia started to operate in two formats which are Tesco Hypermarket and Tesco Extra Hypermarket. Tesco Hypermarket is a place that offers customers a complete one stop shopping for their needs from fresh food to groceries, from household needs to apparel. It carries more than 86,000 lines of products including nearly 4,000 own brand of products ranging from food to non-food items. Tesco Extra Hypermarket serves the needs of small businesses, families and individuals all under one roof by providing a comprehensive range of products and services focused for small businesses including bigger pack sizes, special trolleys and checkouts as well as a dedicated business development team to support small business owners with their orders. Tesco Malaysia believes that their success depends on people, which include the people who shop with them and people who work with them. If customers like what was offered to them, they are more likely to come back and shop with Tesco again. If Tesco team find that their effort is rewarding, they are more likely to go that extra mile to help customers. In 2004, Tesco Malaysia lauches its own house brand, Tesco Choice. In December 2006, Tesco also acquired Makro Cash & Carry in Malaysia, a local wholesaler which was rebranded to Tesco Extra and provides products for small local...
Words: 3550 - Pages: 15
...com/locate/ijinfomgt Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China Zhaohua Deng a,∗ , Yaobin Lu a , Kwok Kee Wei b , Jinlong Zhang a a b School of Management, Huazhong University of Science and Technology, 1037 Luoyu Road, Hongshan District, Wuhan, China Department of Information Systems, City University of Hong Kong, Kowloon, Hong Kong a r t i c l e Article history: i n f o a b s t r a c t With the rapid development of mobile technology and large usage rates of mobile phones, mobile instant message (MIM) services have been widely adopted in China. Although previous studies on the adoption of mobile services are quite extensive, few focus on customer satisfaction and loyalty to MIM in China. In this study, we examine the determinants of customer satisfaction and loyalty. The findings confirm that trust, perceived service quality, perceived customer value, including functional value and emotional value, contribute to generating customer satisfaction with MIM. The results also show that trust, customer satisfaction and switching cost directly enhance customer loyalty. Additionally, this study finds that age, gender, and usage time have moderating effects. Finally, implications for the marketing of MIM are discussed. © 2009 Elsevier Ltd. All rights reserved. Keywords: Mobile instant message Trust Perceived customer value Perceived service quality Customer satisfaction Switching cost Customer loyalty 1. Introduction With...
Words: 4444 - Pages: 18
...The impact of corporate image and reputation on service quality, customer satisfaction and customer loyalty: testing the mediating role. Case analysis in an international service company Eman Mohamed Abd-El-Salam, Ayman Yehia Shawky and Tawfik El-Nahas Arab Academy for Science and Technology and Maritime Transport, College of Management and Technology, Alexandria, Egypt Keywords Corporate image, Service quality, Customer satisfaction, Customer loyalty, Egypt. Abstract The purpose of this paper is to explore the relationship among corporate image and reputation, service quality, customer satisfaction and customer loyalty through a case analysis on one of the biggest Egyptian company. A structured questionnaire was developed. The hypotheses were simultaneously tested on a sample of 650 customers out of 800 distributed, giving a response rate of 81.25 per cent. Several analytical techniques were used to assess the relationships among the variables under investigation such as Pearson correlation, chi-square, and multiple linear regressions. Hierarchical regression was used to assess the mediating role. The findings of this study have shown significant relationships among the variables under investigation. It is imperative to explore how an international company can effectively and efficiently work in the Egyptian culture gaining their customers satisfaction and loyalty. The research was limited to one of the biggest international company that is working in Egypt. Also the...
Words: 5849 - Pages: 24
...A STUDY ON CUSTOMER LOYALTY TOWARDS E-BANKING SERVICES ABSTRACT: One of the modern skills required in the present competitive business world is winning new customers and retaining the existing ones. Thus, business strategists and practitioners are giving great importance to Customer Relationship and Customer Loyalty; irrespective of the nature and size of the business. Today the banking industry more concentrates with the customer relationship and customer loyalty. So bankers are to achieve their goal with the help of e-banking services. E-Banking is a young way for banks to reach new and old customers. Timely adoption of E-Banking is significant for all banks to have secure future business. Banks are facing extremely intensive competition from non-banking sector, thus they have adopted a more aggressive approach to fight competitors for financial services’ market share. To make this study more authentic primary data is collected from the respondents of Tiruchirappalli District and statistical tools are used for analysis and reach on valid conclusion. Key words:Customer Satisfaction, Customer Loyalty and E-Banking INTRODUCTION: As bank wants move very nearer to the customers, increase its basic operational strategies, move towards international trade and need of quick transfer of money etc., and sothere are using theElectronic Banking services. E-Bankinggenerally implies a service that allows customers to use some form of computer to access...
Words: 4988 - Pages: 20
...Measurement of Customer Satisfaction Level Of consumer Product Assignment On: Measurement of Customer Satisfaction Level Of consumer Product Pre Pared For: Salma Sultana Course Teacher of Marketing Pre Pared By: Group: Marketing 2ed Year Batch: 10th Name: Saydur Rahman Sourav ID: 301138 Submission Date: 3.04.2013 Siddheswari University College Date: 3 February, 2013. The Course Teacher Salma Sultana Subject: Application for submission of assignment on Tram Paper in Marketing Dear Sir I beg to state that, I am a student of 2ed year in group-Marketing in Siddheswari University College. I am submission of an assignment on Tram Paper. The assignment topic is Measurement of Customer Satisfaction Level Of consumer Product. So therefore pray and hope that you have received my assignment & any inquire please let us known. Sincerely Your obediently students 2ed Year Group-B ----------------------------- Saydur Rahman Sourav ABSTRACT Service quality and customer satisfaction are very important concepts that companies must understand if they want to remain competitive and grow. In today’s competitive environment delivering high quality service is the key for a sustainable competitive advantage. Customer satisfaction does have a positive effect on an organization’s profitability. Satisfied customers form the foundation of any successful...
Words: 10920 - Pages: 44
...Customer Loyalty in Indonesia (study case Honda beat and Telkomsel) Nur Endah Lizarifin Customer Loyalty Customer loyalty is the result of consistently positive emotional experience, physical attributebased satisfaction and perceived value of an experience, which includes the product or services. Customers exhibit customer loyalty when they consistently purchase a certain product or brand over an extended period of time. As an example, many customers stick to a certain travel operator due to the positive experiences they have had with their products and services. Customer loyalty is the key objective of customer relationship management and describes the loyalty which is established between a customer and companies, persons, products of brands, the individual market segments should be targeted in terms of developing customer loyalty. Four different reasons for loyalty should be promote Psychological Customer might also developing a sense of loyalty to a certain person working for a company. People can build up a good relationship with a bank advisor they have known for several years and who has always fulfilled their expectations. The fact that people develop a sense of loyalty can be described as a psychological reason to stick to a specific product. Economic In business to business markets, it might also be possible that customer loyalty results from the fact that switching to another company would lead to the company facing economic disadvantages. In this case, loyalty...
Words: 1358 - Pages: 6
