Examining and Exploring the Real Ationships Between Customer Satisfaction and Customer Loyalty

Mr. H. C. Purohit

doi:https://doi.org/10.51768/dbr.v16i2.162201517

Submit Manuscript Login / Register Subscribe

Home Page

Editorial Advisory Board

Mission, Aims & Scope

Current Issue

Examining and Exploring the Real Ationships Between Customer Satisfaction and Customer Loyalty

H. C. Purohit

Vol 16 , Issue 2 , July - December 2015 | Pages: 37-46 | Research Paper

https://doi.org/10.51768/dbr.v16i2.162201517

Published Online: November 27, 2015

Author Details ( * ) denotes Corresponding author

1. * H. C. Purohit, Assistant Professor, Department of Business Economics, VBS Purvanchal University, Jaunpur, Uttar Pradesh, India (hcpurohit_mbe@rediffmail.com)

This study aims to analyze how consumer satisfaction leads to loyalty and ultimately maximization of the business profit. It has become relatively common for corporate houses to understand their customers’ behaviour in order to survive, grow and win this globally competitive market. A firm should be able to increase customer satisfaction by improving its product and service quality, ultimately leading to better performance.

Design/Methodology/Approach: The data were collected from the students of the University at VBS Purvanchal University, Jaunpur (U.P.). More than 150 students of different Post Graduate and Under Graduate courses of the University were contacted for the purpose. The hypotheses developed on the findings of the past studies and literatures. Regression analysis was employed to test the hypotheses.

Findings: The results indicate that the customer expectation, product performance and satisfaction are having a direct relationship with customer loyalty. Product performance and word of mouth communication behavior influences customer satisfaction and intention to reuse/repurchase the same product in future.

Research Limitations/Implications: The data collected for the purpose is only from the University students as they are techno savvy and more friendly to use the new technology and prone to adopt it. The future study can investigate the customer shopping behavior and their future intention during their shopping, which may enhance the validity of the study.

Practical Implications: The study concludes that the product attributes and services help to retain the customer. The continuous improvement in the quality of a product and services are required to satisfy and retain a customer.

Originality/Value: The research explores how consumer satisfaction leads customer loyalty and future intention, and empirically tests how product attributes influences the consumer satisfaction and future behavior.

Keywords

Customer Satisfaction, Customer Retention, Product Quality, Service Quality, Customer Expectation.

Aaker, J.L. (1997). Dimensions of brand personality, Journal of Marketing Research, 34(3), 347-357. Ambler, T. (2003). Marketing and the bottom line, 2nd ed., London: Prentice-Hall.
Andreassen, T.W. & Lindestad, B. (1998). The effect of corporate image in the formation of customer loyalty, Journal of Service Research, 1(1), 82-92.
Atalik O. & Arslan M. (2009). A study to determine the effects of customer value on customer loyalty in airline companies operating: Case of Turkish Air Travelers, International Journal of Business and Management, 4(6), 154-162.
Baumann, C., Burton S., Elliott G., & Kehr, H.M. (2006). Prediction of attitude and behavioral intentions in retail banking, International Journal of Bank Marketing, 25(2), 102-116.
Biel, A.L. (1992). How brand image drives brand equity, Journal of Advertising Research, 32(6), 6-12.
Bloemer, Josée & Ko, de Ruyter (1998). On the relationship between store image, store satisfaction and store loyalty, European Journal of Marketing, 32(5/6), 499-513.
Boulding, W., Kalra, A., Richard, S., & Zeithaml, V.A. (1993). A dynamic process model of service quality: From expectations to behavioral intentions, Journal of Marketing Research, 30(1), 7-27.
Cadotte, E.R., Woodruff, R.
B., & Jenkins, R.L. (1987). Expectations and norms in models of consumer satisfaction, Journal of Marketing Research, 24(3), 305-314.
Chiang, C.F., Jang, S.S.C. (2007). The effects of perceived price and brand image on value and purchase intention: Leisure travelers’ attitudes toward online hotel booking, Journal of Hospitality Marketing & Management, 15(3), 49-69.
Churchill, G.A. & Surprenant, C. (1982). An investigation into the determinants of customer satisfaction, Journal of Marketing Research, 19(4), 491-504.
Cöner, A. & Güngör, M.O. (2002). Factors affecting customer loyalty in the competitive Turkish metropolitan retail markets, Journal of American Academy of Business, 2(1), 189-195.
Cronin, J., & Morris, M. (1989). Satisfying customer expectations: The effect on conflict and repurchase intentions in industrial marketing channels, Journal of Academy of Marketing Science, 17(1), 41-49.
Day, R.L. (1977). Extending the concept of consumer satisfaction, Advances in Consumer Research, 4(1), 149-154.
Dick, A.S. & Basu, K. (1994). Customer loyalty: Toward an integrated conceptual framework, Journal of Academy of Marketing Science, 22(2), 99-113.
Hagan, C.M., Konopaske, R., Bernardin, H.J., & Tyler, C.L. (2006). Predicting assessment center performance with 360- degree, top-down, and customer based competency assessments, Human Resource Management, 45(3), 357-390.
Homburg, C., Koschate, N., & Hoyer, W.D. (2005). Do satisfied customers really pay more? A study of the relationship between customer satisfaction and willingness to pay, Journal of Marketing, 69(2), 84-96.
Howcroft, B., Hamilton, R., & Hewer, P. (2007). Customer involvement and interaction in retail banking: An examination of risk and confidence in the purchase of financial products, J. Service Market., 21(7), 481-491.
Innis, D. & La Londe, B. (1994). Customer service: The key to customer satisfaction, customer loyalty, and market share, Journal of Business Logistics, 15(1), 1-27.
Kotler, P. & Keller, K. (2006). Marketing management: Customer value, customer satisfaction and customer loyalty, 12th ed. KY: Prentice-Hall.
Lin, H.H. & Wang, Y.S. (2006). An examination of the determinants of customer loyalty in mobile commerce contexts, Information and Management, 43(3), 271-282.
Omachonu, V., Johnson W.C., & Onyeaso, G. (2008). An empirical test of the drivers of overall customersatisfaction: Evidence from multivariate granger causality, Journal of Services Marketing, 22(6), 434-444.
Oliver, Richard L. (1977). Effect of expectation and disconfirmation on post exposure product evaluations: An alternative interpretation, Journal of Applied Psychology, 62(4), 480-486.
Oliver, Richard L. & William, O. Bearden (1983). The role of involvement in satisfaction processes, Advances in Consumer Research, 10, Eds. Richard P. Bagozzi, & Alice M. Tybout, Ann Arbor, MI: Association for Consumer Research, 250-255.
Oliver, Richard L. & John, E. Swan (1989). Equity and disconfirmation perceptions as influences on merchant and product satisfaction, Journal of Consumer Research, 16(3), 372-383.
Purohit, H.C. (2004). Consumer satisfaction & complaining behavior, New Delhi: Mittal Publications.
Renata, Matysik-Pejas & SzafraÒska, Monika (2011). The rationality of consumer behavior on the food products market, Delhi Business Review, 12(2), 11-19.
Reichheld, F.F. & Sasser, W.E.J. (1990). Zero defections Quality comes to services, Harvard Business Review, 68(5), 105-111.
Santouridis, I. & Trivellas, P. (2010). Investigating the impact of service quality and customer satisfaction on customer loyalty in mobile telephony in Greece, TQM J., 22(3), 330-343.
Tu, Y.T., Wang, C.M., Chang, H.C. (2012). Corporate brand image and customer satisfaction on loyalty: An empirical study of starbucks coffee in Taiwan, Journal of Social and Development Sciences, 3(1), 24-32.
Walsh, G., Dinnie, K., & Wiedmann, K.P. (2006). How do corporate reputation and customer satisfaction impact customer defection? A study of private energy customers in Germany, Journal of Services Marketing, 20(6), 412-420.
Walsh, G., Hennig-Thurau, T., & Mitchell, V.W. (2007). Consumer confusion proneness: Scale development, validation, and application, Journal of Marketing Management, 23(7-8), 697-721.
Wang, Y., Lo, H.P., & Yang, Y.H. (2004). An integrated framework for service quality, customer value, satisfaction: Evidence from China’s telecommunication industry, Information Systems Frontiers, 6(4), 325-40.
Wills, B. (2009). The business case for environmental sustainability (Green): Achieving rapid returns from the practical integration of lean & green, http://www.leanandgreensummit.com/LGBC.pdf, Accessed on February 1, 2016.
Wu, K.W. (2011). Customer loyalty explained by electronic recovery service quality: Implications of the customer relationship re-establishment for consumer electronics e-tailers, Contemporary Management Research, 7(1), 21-44.
Yi, Youjae (1990). A critical review of consumer satisfaction, Review of Marketing, 4(1), 68-123.