Theory Of Assimilation-Contrast

2.3.3 Theory of Assimilation-Contrast

The theory of assimilation-contrast is a combination of both the assimilation and the contrast theories; the model postulates that satisfaction is a function of the magnitude of the discrepancy between expected and perceived performance (Hoyer and MacInnis, 2001). Peyton et al. (2003) noted that when there is a large discrepancy between expectations and perceived performance, contrast effects occur and the consumer tends to magnify the perceived difference. However, it should be noted that most discrepancies with a given product are not just magnified or exaggerated, but they are simply the true evaluation of the product, based on what the consumers’ have experienced.

2.3.4 The Theory of Negativity

The

Customer satisfaction strategy has built a great deal of consideration during the past decades (Oliver, 1996). Therefore, satisfaction is in reality probably the most unassailable concepts of the modern management field (Oliver, 1996). Not simply does the idea of satisfying customers have a good, common-sense appeal, it can be also believed that customer satisfaction would lead towards loyalty, resulting in to increase higher profit gain (Oliver, 1996).

For many firms, customer satisfaction is becoming the guiding principle for establishing marketing tactics as well as developing marketing activities. Customer satisfaction must not be described as a goal in its place, it should be considered as a means for improving the company's performance (Martensen et al., 2000). During the 1990s, there was a popular realization that satisfaction ratings have been in actual fact a means for attaining strategic purposes, such as customer retention which is considered to affect companies' profits directly (Reichheld,

Satisfied customers have a higher likelihood of repeating purchases in time, of recommending that others try the source of satisfaction (Oliver, 1996).

2.5 Overview of Service Quality

Bateson and Hoffman (1999) defined services as deeds, efforts or performance. Ladhari (2009) defined services as activities, benefits or satisfactions offered for sale or provided in connection with the sale of goods.

Zeithaml and Bitner (1996) described services as those economic activities that typically produce an intangible product such as education, entertainment, food and lodging, transportation, insurance, trade, government, financial, real estate, medical repair and maintenance like occupations.

According to Gowan et al. (2001), service provision is more intricate in the public sector because it is not simply a matter of meeting expressed needs but of finding out unexpressed needs, setting priorities, allocating resources and publicly justifying and accounting for what has been