Thesis Customer Satisfaction

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  • Topic: Customer satisfaction, Hotel, Customer
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CHAPTER II
Review of Related Literature

This chapter presents the literature related to this study. This will be conducted with the assessment of related literature to show the relevance of the literature to the study. RELATED LITERATURE

Customer satisfaction is the most fundamental requirement for being in business. Therefore, every organization should plan the right strategies for dealing with customers, communicating with them, providing pleasant services and retaining them forever with specially chosen customer contact employees, all leading to their delight. Since most of the quality problems arise due to misunderstood requirements, it is essential to take steps to correctly understand, both the stated and implied requirements of the customers. The organization should not only fulfill the contracted requirements, but also make it appoint to provide unanticipated additional services to delight the customers and retaining them forever. The most important point is that organizations should provide COMFORT to the customers while serving them. Thus, the business should be oriented towards satisfying customers. (Subburaj Ramasamy; TQM-Int’l Edition 2012)

 Customer satisfaction is the state of mind that customers have about a company when their expectations have been met or exceeded over the lifetime of the product or service. The achievement of customer satisfaction leads to company loyalty and product repurchase. Customer satisfaction measurement must be undertaken with an understanding of the gap between customer expectations and attribute performance perceptions.  Clearly defining and understanding customer satisfaction can help any company identify opportunities for product and service innovation and serve as the basis for performance appraisal and reward systems. (Kevin Cacioppo; Measuring and Managing Customer Satisfaction)

Customer satisfaction has been a popular topic in marketing practice and academic research since Cardozo's (1965) initial study of customer effort, expectations and satisfaction. Despite many attempts to measure and explain customer satisfaction, there still does not appear to be a consensus regarding its definition (Giese and Cote, 2000). Customer satisfaction is typically defined as a post consumption evaluative judgement concerning a specific product or service (Gundersen, Heide and Olsson, 1996). It is the result of an evaluative process that contrasts prepurchase expectations with perceptions of performance during and after the consumption experience (Oliver, 1980). The most widely accepted conceptualization of the customer satisfaction concept is the expectancy disconfirmation theory (Barsky, 1992; Oh and Parks, 1997; McQuitty, Finn and Wiley, 2000). The theory was developed by Oliver (1980), who proposed that satisfaction level is a result of the difference between expected and perceived performance. Satisfaction (positive disconfirmation) occurs when product or service is better than expected. On the other hand, a performance worse than expected results with dissatisfaction (negative disconfirmation). Studies show that customer satisfaction may have direct and indirect impact on business results. Anderson et al. (1994), Yeung et al. (2002), and Luo and Homburg (2007) concluded that customer satisfaction positively affects business profitability. The majority of studies have investigated the relationship with customer behaviour patterns (Söderlund, 1998; Kandampully and Suhartanto, 2000; Dimitriades, 2006; Olorunniwo et al., 2006; Chi and Qu, 2008; Faullant et al., 2008). According to these findings, customer satisfaction increases customer loyalty, influences repurchase intentions and leads to positive word-of-mouth. Given the vital role of customer satisfaction, it is not surprising that a variety of research has been devoted to investigating the determinants of satisfaction (Churchill and Surprenant, 1982; Oliver, 1980; Barsky, 1995; Zeithaml and Bitner, 2003). Satisfaction...
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