Even from the supplier facet, the bulk of previous client retention literature has targeted on the economic aspects of retentive customers and the way corporations develop ways to enhance customer retention and maximize returns through the customers‟ life cycles (Clarke et al., 2002). Scholars and practitioners‟ interest in the economic aspects of retentive clients has inflated since Dawkins and Reichheld (1990) reported that a five-hitter increase in client retention generated a rise during a customer web gift worth of between twenty fifth and ninety fifth during a wide selection of health care business sectors. Also, according to Hanks (2007), a mere 5% improvement in client retention will lead to a seventy fifth increase in gain. However, establishing and maintaining strong relationships with all customers might not be the first aim of some organizations as a result of not all customers and their relationships square measure similar or profitable (Hausman, 2001; Chen and Popovich,
Therefore, the value for money products or the services would obviously satisfy the customers. Five dimensions are there according to Howat, Crilley& McGrath (2009), such as, quality, price, behavioural price, emotional response and reputation. Therefore, customer satisfaction is the ultimate criterion to decide whether the services meet the perceived quality standard or not (Hafeez& Muhammad, 2012). Theresearcher has thus observed that customer value and customer loyalty are the two important factors of customer perceived
Explain the impact of customer service on the performance of the business Customer service is key to business performance. It helps business’s retain or grow existing customers and win new customers. It builds a business’s reputation and trustworthiness. It also enables a business to be more efficient by improving processes and reducing the number of problems created for customers. With the ability to quickly adapt and handle customer concerns, customer service represents an area small businesses excel in, according to the University of Maryland 's Robert H. Smith School of Business.
When perceived service quality is less than expected service quality customer will dissatisfied (Lovelock & Wirtz, 2011). According to the recent researches that there is a strong linkage between service quality dimensions and overall customer satisfaction (Palmer, 2001). Even definitive analysis too, service quality cannot be separated from the concept of customer satisfaction (Shah, 2012). Recent researches have shown that customer satisfaction have been influenced not only by perceptions of service quality but also by perceptions of product quality, and pricing factors as well as situational and personal (Zeithaml & Bitner, 2000). 1.2 The fast-food industry in
The process by which customers evaluate a purchase, thereby determining satisfaction and the likelihood of repurchase, is what is important to all marketers but especially to service marketers because, unlike their manufacturing counterparts, they have fewer objective measures of quality by which to judge their productions. In the operating-hospitality sector, customer research is still lacking, with most feedback from the customers discussing the experience they had at the time. Today, service quality is approached in the hospitality industry by not only management staff collecting information at the table based upon the customer experience, it now can consist of determining the degree of satisfaction of the user of the service. You are asked to fill out a short survey at the end of each transaction whether it’s directly at the site or via email which can be found at the end of your receipt. In the hospitality industry, a lot of different services are being offered to customers, the impact comes back to the quality performance of the service, making it more difficult to measure.
Increasing goodwill: A more systematically developed Customer service policies will create a good reputation among customers. They will consider the product and the services of the firm is superior than other competitors. Customers will consider the firm as a consistent entity who provide superior goods and services consistently Customer needs analysis for the different types of customers Customers play a most crucial part in business. Actually they are the actual boss in the firm.it is more true for hotel and restaurant business. Whether a firm produce quality product is judged by customers and they are the actual sources of revenue for the firm.
(1998), who measured consumer perceptions of service quality. Parasuraman found that responsiveness was the most vital factor in determining the level of customer satisfaction with services offered. 5 2.4.5Assurance The assurance’ aspect refers to the courtesy and knowledge of the hotel staff and their ability to instigate confidence and trust to their guests including credibility, courtesy, competence and security (Parasuraman et al., 1991). Trustworthiness, responsibility and perception of assurance of the guests towards the staff is a vital factor in determining the level of customer satisfaction with services offered. 5 2.4.6 Empathy The empathy aspect represents the provision of caring and personalized attention to customers from the staff of the hotel.
rating systems encourage hotel operators to improve their service quality, which may lead to changes in hotel performance. Figure: 3 Relationship of Hotel Rating Systems, Service Quality Improvement and Hotel Performance Changes Those reasons are motivations for researchers try to find out the measurement models of customer satisfaction and service quality in various industries. 2.3.3 Confirmation-Disconfirmation Theory Customer satisfaction is defined as a post-purchase evaluative judgment concerning a specific buying decision (Homburg and Giering, 2001). According to the confirmation-disconfirmation paradigm, customers assess their levels of satisfaction by comparing their actual experiences with their previous experiences, expectations,
Job satisfaction of employees and customers satisfaction are interlinked (Griffith, &Koys, 2001) cited in (Almana, 2013). Satisfied and empowered employees will definitely help in the retention of customers thus competitive advantage. As pointed out by Awan, Hassan, & Perevaiz, (2014) because the competition in the market demands retention of existing customers is more important than the new customers, which means provision of continuous service quality. This is dependent on motivated and well equipped employees which is significant customer satisfaction indicators. In case of service sector customer satisfaction is considered very potent indicator.
There are no two opinions on the importance of customers for any organization. Customers are a key to success for any organization. Organizations go great distances to create customers and then to retain them as long as possible. Satisfied customers become loyal customers thereby generating lifetime value (a total sum of series of purchases that a customer is expected to make from a business over its lifetime) for the business organizations. Both theoretical as well practical studies have revealed that customer retention and relationship maintenance exert positive impact on organizational performance (Dovaliene, Gadeikiene and Piligrimmiene, 2007).