CHAPTER 2 LITERATURE REVIEW 211 Customer satisfaction Customer Satisfaction is

Chapter 2 literature review 211 customer satisfaction

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CHAPTER 2 LITERATURE REVIEW 2.1.1 Customer satisfaction Customer Satisfaction is a term used by the companies that the products or services offered meet or surpass the expectation of their customers. Greenwell describes customer satisfaction as the post purchase, judgment, connected with the purchase decision and tends to return again back for the purchase (2002). In addition to that, Oliver argued that customer satisfaction as a psychological behavior and in action. Customer satisfaction has shown itself to be an increasingly important determinant of a business's success and this is arguably more so in relation to the cafe industry. Studies have been undertaken whereby it was concluded that satisfied customers are central to the long term success of a business. It should be mentioned that the linkage between customer satisfaction and customer behavior
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(return customer patronage) has been well documented in marketing literature. Customer satisfaction is defined in Oliver’s (1997) study as the consumer’s fulfillment response. It is a judgment that a product or service feature, or the product or service itself, provides a pleasurable level of consumption related fulfillment. In other words, it is the overall level of contentment with a service/product experience (Andaleeb & Conway, 2006). Anderson and Fornell (2000) assume businesses exist and compete to create satisfied customers. Investors are attracted to companies that can perform well at satisfying their customers. It emphasizes that business prosperity would not be able to bloom without increasing customer satisfaction. It is not the amount of goods and services a company can produce that leads to its success but how well the business satisfies its customers so they will return and keep the business growing. The early study on customer satisfaction emphasized that achieving high customer satisfaction can generate more new and repeat purchases and favorable word-of-mouth communication, which in turn will lead to higher revenue and profits (Tam, 2011). At early studies, researchers have also found a strong relationship between satisfaction and loyalty as shown by study by Bearden and Teel in 1983 (Andaleeb & Conway, 2006). Study by Szymanski and Henard in 2001 in their meta- analysis, also indicated 15 positive and significant correlations between the two constructs. However, in fact Jones et al. in 1995 argue that this relationship is not a simple linear one but according to several cause-related attributes. More recent studies place more focus in exploring more attributes surrounding the customer satisfaction and its impacts on the former. Service quality has been found to be able to predict customer satisfaction more than what customer perceived value does. The study also emphasized that customer value has an indirect effect on customer relationship management performance and brand loyalty mediated by customer satisfaction. Price and quality is an important factor for customer satisfaction which leads to marketing managers’ decisions complexity nowadays as markets are becoming more and more complex and overloaded. In another words, in this
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  • Summer '14
  • ........., Customer relationship management

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