1.1 BACKGROUND OF RESEARCH
The essence of the dissertation principally to carry out relationship that exist between the impact of customer satisfaction and business performance from its antecedents of customer loyalty and retention, customer relationship management, based on performance of attribute in retail industry. A case study of ASDA is presented as concept proof. A detailed background of satisfaction of customer, loyalty and retention towards product or service performance represents the continuous challenges in the corporate financial gain and loss. Organisations usually consider enhanced customer relationship management (CRM) as a reputable asset to the core function of their organisation. A considerable discussion on impact of behaviour of customer in performance of business of literature of marketing has been outlined (Heskett et al., 1994; Nelson et al., 1992; Rust and Zahorik, 1991; Storbacka et al., 1994). On the contrary, much may have not been discussed on work of empirical that has to do with satisfaction of customer, loyalty and retention, on the premises of attributes of quality of Service. Chain of service quality concept relates quality of service, behaviour of customer and inclusively profit was proposed (Reichheld and Sasser, 1990). They argued satisfaction of customer influences value of service quality, which directly relates retention of customer, loyalty of customer. Profitability is stimulated by customer retention and loyalty. Concept of service quality shall be discussed in marketing literature and various framework developed (Parasuraman et al., 1988). There isn’t much agreement within the researchers that explains relationship amongst attributes of service quality, satisfaction of customer even though previous research has shown a positive relationship (Rust and Oliver, 1994; Fornell et al., 1996). Looking out for core attributes of service determines satisfaction of customer and not being satisfied makes organisation be on the lookout for a robust strategy so as to achieve advantage over their rivals (Matzler et al., 2004). More so, satisfaction of customer creates attitudes of intermediary among attributes of service quality and behaviour of customer. Model of customer behaviour shown below in fig. 1.1, It may increase retention of customer via increased and repeated purchase. Customer satisfaction can positively affect loyalty of customer. Improved retention and loyalty of customer can as well increase profitability (Manrodt and Davis, 1993; Emerson and Grimm, 1998).
Fig.1.1 MODEL OF CUSTOMER BEHAVIOUR
Attribute of service quality----- Satisfaction of customer---- Retention of customer---- Loyalty of customer. Marketing literature of customer relationship management shows several benefits to not just customers but also suppliers in management of strategy and business performance. It enables relationship based on loyalty, trust, strategy development etc to the needs of the customers (Anderson et al., 1994). 1.2 PROBLEM RESEARCH
There are four research questions the researcher is trying to find answer for. 1. How customer satisfaction affects customer loyalty?
2. What is concept of customer loyalty?
3. What is relationship between loyalty of customer and customer relationship management? 4. What is the recommendation for building customer satisfaction with respect to customer loyalty and managing customer relationship? 1.3 THE STUDY CONTEXT
The dissertation framework is based on two integral factors. They are attributes of quality of service and behaviour of customer. A model that shows service attributes of service quality from both attribute performance and importance of attribute. It means a dynamic relationship between performance of attribute and importance of attribute. As a result, importance of attribute is directly proportional to performance of attribute. Relationship measure of attributes of quality of service and satisfaction of customer is...
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