CHAPTER II: LITERATURE REVIEW
This chapter collects the necessary literature used to be as the theoretic base to guide the research direction and to develop appropriate scale for measuring customer satisfaction in leisure industry. Earlier researchers found that there has been a close association between research on consumer satisfaction and quality measurement, therefore, the SERVQUAL model is chosen to apply in this context with some modifications. 2.1 Customer satisfaction
A variety of researcher has devoted to define the nature of customer satisfaction. Kotler (2000) defined satisfaction as: “a person’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations”. Hoyer and MacInnis (2001) said that satisfaction can be associated with feelings of acceptance, happiness, relief, excitement, and delight. According to Hansemark and Albinsson (2004), it is an overall customer attitude towards a service provider, or an emotional reaction to the difference between what customers anticipate and what they receive, regarding the fulfillment of some need, goal or desire. With the attempt to measure customer satisfaction, Hokanson (1995) identified several factors include friendly employees, courteous employees, knowledgeable employees, helpful employees, accuracy of billing, billing timeliness, competitive pricing, service quality, good value, billing clarity and quick service. However, between measurement and explanation there still does not appear to be a consensus regarding its definition (Giese and Cote, 2000). Depend on the situation and the product or service, customer satisfaction can be different and customer may feel satisfied with product or service, a sale person, a provider, a store, an experience, an attribute or any of these. It can be said that customer satisfaction is a highly personal assessment that is greatly influenced by individual expectations. Some researcher avoids “satisfaction” as measurement objective instead they tried to focus on customer’s entire experience with an organization or service contact and the detailed assessment of that experience. According to Bitner (1990), consumer satisfaction generally relies upon product quality and services being offered. And there exist a close association between research on consumer satisfaction and quality measurement (East; 1997). Due to this reason, measurement of quality is in general closely related to research conducted on customer satisfaction (East, R.; 1997). 2.2 Service quality
Service quality has received a great deal of attention from both academicians and practitioners (Negi, 2009) and services marketing literature, service quality is defined as the overall assessment of a service by the customer (Eshghi et al., 2008, p.121). Sharing the same idea, Ganesan-Lim, Russel- Bennett and Dagger (2008: 551) defined perceived service quality as the customer’s judgment of, or impression about, an organization’s overall excellence or superiority. While others defined service quality as the extent to which a service meets customers’ needs or expectations (Lewis and Mitchell, 1990; Dotchin and Oakland, 1994a; Asubonteng et al., 1996; Wisniewski and Donnelly, 1996). In order to measure service quality have been a challenge because the characteristics of service such as intangibility, perishability, inseparability and variability (Kurtz and Clow, 2002: 10) are different and unable to be found in product or commodities. Service quality is considered an important tool for a firm’s struggle to differentiate itself from its competitors (Ladhari, 2008, p.172). Similarly, Yeo (2008: 267) mentions that the rapid competition in the service industry has led many organizations to focus on providing outstanding service to its customers. He believes that service quality is far more complex; it is concerned with the physical, institutional and psychological aspects of the service...
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