Assessing customer satisfaction and loyalty in the retail sector

2017 ◽  
Vol 34 (9) ◽  
pp. 1508-1529 ◽  
Author(s):  
Ana Rita Biscaia ◽  
Maria J. Rosa ◽  
Patrícia Moura e Sá ◽  
Cláudia S. Sarrico

Purpose The effects of customer satisfaction on loyalty have been widely discussed by the academic community. Although the results of the studies reported in the literature are often contradictory, the existence of a relationship between satisfaction and loyalty is acknowledged, despite the influence of moderators and constraints of various kinds. The purpose of this paper is to discuss this relationship in the specific context of the retail sector, since this sector presents major challenges in terms of competition, and efforts placed on customer satisfaction and loyalty are more evident. Design/methodology/approach A survey based on the European Customer Satisfaction Index (ECSI) model was applied to a retail store in Portugal. This model has its roots in Switzerland, where in 1989, Claes Fornell developed a new complementary method for measuring the overall quality of companies’ output, through the calculation of an aggregated customer satisfaction index. The proposed model is based on a set of causal relationships established between a set of constructs. The ultimate goal is to calculate both satisfaction and loyalty indexes as well as to estimate the relationship between both constructs. Structural equation modelling, based on a partial least squares (PLS) estimation methodology, is the statistical technique used to estimate the model parameters, as well as to compare the aggregated indexes. PLS is based on the principles of linear regression and combines multiple regression aspects with factor analysis, in order to estimate a series of interrelated relationships. Findings The results confirm a positive influence of satisfaction on customers’ loyalty to the retail store. The study also shows the importance of the image construct, due to its strong direct effects on satisfaction, which makes it essential for influencing the loyalty index, both directly and indirectly. The impact of the image construct is also evident on the expectations, as the latter has shown a considerable direct effect on perceived quality. Research limitations/implications The study is based on a single case study of a Portuguese sports retail store. In future it would be interesting to study a representative sample of the whole retail sector. Practical implications The study is useful for the specific retail store where it was undertaken to help it devise better customer service, in order to increase satisfaction and loyalty. It is also useful for the entire network of stores for that retailer and other retail chains. Social implications The systematic application of customer surveys to whole sectors of the economy would improve competition, customer service and, ultimately, contribute to development and economic growth. Originality/value The ECSI has been applied to various industry sectors in different countries, including Portugal. It has never been used in the context of the Portuguese retail sector and it adds to the discussion on the relationship between satisfaction and loyalty, which is a pertinent topic of interest for researchers in quality management.

2021 ◽  
Vol 19 (1) ◽  
pp. 126
Author(s):  
Rachmat Gustiana ◽  
Mustofa Mustofa ◽  
Beby Pebri Nurjaman

This study aims to explain the service mechanism at Bank BJB, Tangerang City Branch to its customers. The research objective was to explain the service level and customer satisfaction index value of the Bank BJB Branch of Tangerang City. The research method used is quantitative method with descriptive type. To measure the level of service used Likert scale analysis and to measure customer satisfaction used customer satisfaction index analysis. The results showed that the research hypothesis can be accepted, with a service level of 70.52%, which is above the critical value of acceptance of hi potesis by 60%. The results of the customer satisfaction index analysis resulted in a value of 89.53 which was included in the service class category A class which indicated that the services provided by the Bank BJB Branch of Tangerang City were very good.


2015 ◽  
Vol 30 (1) ◽  
pp. 17-31 ◽  
Author(s):  
Mohammad Hossein Askariazad ◽  
Nazila Babakhani

Purpose – This paper aims to examine the most important antecedents of customer loyalty in business-to-business (B2B) context using European Customer Satisfaction Index (ECSI) model. Design/methodology/approach – A questionnaire is designed consisting of measures of customer loyalty gathered mainly from previous related studies. A survey of business customers in construction and mining equipment industry in Iran is conducted, and a total of 90 responses are obtained. The collected data are analyzed according to the structural equation modeling technique using partial least square path modeling software. Findings – The ECSI model shows sufficient explanatory power in explaining loyalty in the B2B context. Adding trust to the original model leads to a better explanation of loyalty in the proposed model. In this model, corporate image is the main route to predict loyalty, while satisfaction, complaint handling and trust also are important. Although there is no direct effect of perceived quality, perceived value and expectation on loyalty, their total impact is considerable which is mediated through satisfaction. Research limitations/implications – The research should be expanded to other B2B sectors to validate its findings in different industries. Future research can also assess the impact of moderating variables. Originality/value – Most previous customer loyalty models concern business-to-consumer (B2C) rather than the B2B context. Moreover, research examining the suitability of the ECSI model in B2B is scarce. This paper addresses these shortcomings by examining a holistic customer loyalty model which incorporates some overlooked constructs as corporate image, expectation and complaint handling from the ECSI model. The proposed model, also adds trust which is not incorporated in national indices despite its importance in predicting loyalty.


2018 ◽  
Vol 3 (2) ◽  
pp. 323
Author(s):  
Indra Gamayanto ◽  
Fajrian Nun Adnan ◽  
Devi Ajeng Efrilianda ◽  
Achmad Wahid Kurniawan ◽  
Rizka Nugraha

Customer relationship management merupakan sebuah cabang ilmu yang sangat penting di dalam dunia pendidikan. Oleh sebab itu, penerapakan CRM dapat dilakukan di tingkat universitas. Universitas membutuhkan sebuah pelayanan yang efektif dan efesien, tetapi tidak hanya berhenti sampai di dua hal tersebut. Universitas membutuhkan pelayanan yang berkualitas tinggi, salah satunya adalah bagaimana cara kita membina hubungan dengan seluruh pihak di dalam lingkungan universitas. Di dalam jurnal ini, dengan mengacu kepada dua jurnal penting, yaitu “Customer Satisfaction Index – as a Base for Strategic Marketing Management” (Karolina Ilieska) & “Organizational Structure: Mintzberg’s Framework” (Fred C. Lunenburg), yang merupakan dasar dari jurnal ini. Kedua jurnal ini dikembangkan, sehingga pada akhirnya tercipta CSU (Customer Service University) Framework, yang merupakan sebuah sistem untuk dapat meningkatkan pelayanan di semua sisi di dalam universitas ini. Jurnal ini akan menjelaskan bagaimana CSU dapat diterapkan terutama dalam pribadi setiap dosen dan mahasiswa, sehingga akan tercipta kesempurnaan dalam pelayanan dan hubungan antara dosen dan mahasiswa. Hasil akhir dari CSU dan jurnal ini adalah meningkatnya sistem pelayanan kepada dosen dan mahasiswa; meningkatnya integritas di lingkungan kampus, dan terjadinya kenyamaman kualitas tinggi di seluruh lingkungan universitas- hubungan yang stabil antar pihak serta sistem dapat sungguh-sungguh berjalan secara efektif dan efesien. Keywords : Pelayanan Konsumen, Universitas, Definisi Konsumen, Metode Kepercayaan ABCD, HSOVA


2018 ◽  
Vol 35 (8) ◽  
pp. 1546-1567 ◽  
Author(s):  
Samuel Famiyeh ◽  
Disraeli Asante-Darko ◽  
Amoako Kwarteng

Purpose The purpose of this paper is to understand the moderating role of organizational culture in the relationship between service quality, customer satisfaction and loyalty in the banking sector using data from the Ghanaian banking sector. The idea is to understand the relative importance of the various service dimensions to customers patronizing banking services in Ghana and to ascertain what drives customer satisfaction and whether this satisfaction has implication on their loyalty. Design/methodology/approach The study used a survey and relied on partial least squares structural equation modeling to study the relationship between service quality and its impact on customer satisfaction and customer loyalty. Findings The result indicates that the reliability, ambiance and social factors all have a significant positive relationship with the satisfaction of customers doing business with these banks. However, assurance and responsiveness of the employees seem to have no significant relationship with the satisfaction of customers. It is also important to indicate that organizational culture seems to strengthen the positive relationship between the service quality dimensions and customer satisfaction. The results further indicate that customer satisfaction has a direct positive relationship with customer loyalty. Research limitations/implications Reliability, ambiance and social factors remain the three most important drivers of customer satisfaction in the banking sector in Ghana. It is, therefore, important for bankers to consistently undergo training and education in order to deliver more reliable services to customers. Managers should also make efforts to groom employees, provide attractive promotion materials, provide directions to the banks, make sure the banking halls are neat for customers while waiting and the provision of enough parking spaces for customers. One limitation of this work is that the data focused on only the Ghanaian banking environment. Practical implications The research shows the importance of the service quality constructs such as reliability, ambiance and the social factors on customer satisfaction and loyalty in the banking sector. The organizational culture seems to strengthen the positive relationship between empathy, reliability, tangibles and customer satisfaction. It is therefore important for banks to continue to build cultures that will commit employees to their work, so that they feel the sense of ownership of quality in order to contribute meaningfully. Originality/value The work illustrates and provides some insights and builds on the literature in the area of service quality, customer satisfaction and loyalty from a developing country’s environment using the stimulus-organism-response model. In addition, this work further highlights the importance of the moderating role of organizational culture in the relationship between the service quality dimensions and customer satisfaction.


Author(s):  
Mustafeed Zaman ◽  
Laurent Botti ◽  
Tan Vo Thanh

Purpose The purpose of this study is to examine the relationship between the managerial efficiency and the customer satisfaction of Parisian boutique hotels by using the multi-criteria decision analysis (MCDA) methods. Design/methodology/approach In the first stage, hotels’ managerial efficiency is assessed by data envelopment analysis to establish which hotel has the most efficient performance. In the second stage, the customer satisfaction of these hotels is estimated by the ELECTRE (ELimination et Choix Traduisant la RÉalité) method to assess the hotel’s ability to satisfy their customers. Findings Empirical results show that there is an inverse relation between customer satisfaction and ability to maximise the Revenue per Available Room (RevPAR). In other words, trying to improve efficiency implies a reduction in guests’ satisfaction (and vice versa). Research limitations/implications Therefore, through this research the authors can realise that hotel managers should give more attention to customer service because it has a more direct and important impact on customer satisfaction. It also positively impacts on resource management. However, there are some limitations to this study. First, this study only focuses on 12 hotels. Because the data set is very confidential, it is very difficult to have a bigger sample. Then, the evaluation is based on 2014 figures only. It could be interesting to know their performance for previous years to understand their evolution. Finally, it is necessary to know the percentage of direct reservations for each hotel. For instance, if a hotel is relying too much on online travel agents (i.e. Booking.com, Expedia, etc.), it needs to pay a significant amount of commission to these companies. As a result, it could have a good RevPAR but might pay a huge commission (for example, 20 per cent for most of sites) at the end. In terms of perspectives, it is necessary to conduct a more extensive research to test the hypothesis in a different context. Additionally, the data were taken for a single period of time. It will be very interesting to create a panel of hotels and collect data over a period of time (Barros, 2005; Barros and Santos, 2006; Barros and Deike, 2008). This would enable to better understand the relationship between managerial efficiency and customer satisfaction in a long-term prospective. Originality/value This paper presents the relationship between the managerial efficiency and customer satisfaction in Parisian boutique hotels context. Study suggests that in service industry, increase of firm’s efficiency could negatively impact the guest satisfaction. Therefore, through studying the authors can realise that why hotel managers should focus on customer satisfaction, which attributes play the vital role in customer satisfaction and how to optimize their resources. One of the originalities of this paper is that the authors use the customers’ feedback from the UGC websites (Trip Advisor and Booking.com) as the performance evaluation indicators for customer satisfaction. The data are very confidential and hard to get.


2017 ◽  
Vol 21 (1) ◽  
pp. 71
Author(s):  
Sri Ariani Safitri ◽  
Suharno Suharno ◽  
Anna Fariyanti

Along with the increasing demand of palm oil seed trigger an increased number of seed producers of palm oil in Indonesia. Under conditions of tight competition, PT Socfin Indonesia (Socfindo) as one of the producers of palm oil seed needs to evaluate the performance of the marketing mix (product, price, place and promotion) through customer satisfaction and loyalty. This study aimed to analyze the influence of marketing mix towards customer satisfaction and loyalty as well as to analyze the level of satisfaction and loyalty customer  palm oil seed of PT Socfindo. The collection of data through the 30 respondent companies. Data analysis methods used Structural Equation Model Partial Least Square (SEM PLS). Analysis results showed that the the product variables have a significant influence on customer satisfaction and loyalty, while the variables of price, place and promotion does not have a significant influence in shaping customer satisfaction and loyalty. In addition, the calculation results Customer Satisfaction Index (CSI), customer satisfaction index palm oil seed PT Socfindo which can be categorized as very satisfied and calculating results Customer Loyalty Index (CLI), an index of customer loyalty palm oil seed PT Socfindo which can be categorized loyal.


2018 ◽  
Vol 35 (9) ◽  
pp. 1835-1852 ◽  
Author(s):  
Dongjun Rew ◽  
Joo Jung ◽  
Wonsuk Cha

Purpose The purpose of this paper is to verify the relationship between productivity and quality in the services sector. More specifically, this study investigates the relationship between productivity and customer satisfaction and its effect on a firm’s performance. In addition, this study investigates the roles of productivity and customer satisfaction in the structural relationships among variables. Design/methodology/approach A theoretical model was proposed among innovation, productivity, customer satisfaction and firm performance. A sample of 127 firms from data sets of the American Customer Satisfaction Index and COMPUSTAT was collected. To test the hypotheses, this study used ordinal least squares analysis and path analysis. Findings The findings of this study verified that a positive relationship exists between productivity and customer satisfaction and that service productivity and customer satisfaction are positively associated with a firm’s performance. In addition, customer satisfaction was found to fully mediate the relationship between productivity and a firm’s performance. Research limitations/implications This study only focused on a short period for each variable due to the difficulty of matching all the data sets used for measuring each variable, which limited the observation of the different effects of service productivity among industries. Practical implications The findings of this study suggest that managers can improve productivity without sacrificing customer satisfaction. In addition, services firms should consider innovation, productivity and customer satisfaction in a holistic way because all of these affect a firm’s performance. Furthermore, services firms need to pay more attention to customer satisfaction, which plays an important role as a mediator in increasing a firm’s performance. Originality/value This study highlights the importance of the relationship between productivity and customer satisfaction in the services sector. In particular, this study extended the theory of service productivity by Rust and Huang (2012) to explore the role of service productivity and customer satisfaction in measuring a firm’s performance.


Author(s):  
Quynh Xuan Tran ◽  
My Van Dang ◽  
Nadine Tournois

Purpose This study aims to investigate the effects of servicescape on customer satisfaction and loyalty – centered on social interaction and service experience in the café setting. Design/methodology/approach Data for this study were collected from approximately 1,800 customers at 185 coffee stores located in the three largest cities in Vietnam through the self-administered questionnaires. Findings The research findings pointed out the significant impacts of café servicescape on social interaction quality, including customer-to-employee interaction (CEI) and customer-to-customer interaction (CCI). Social interactions and servicescape were shown to remarkably influence customer experience quality, customer satisfaction and loyalty. Moreover, the study confirmed the interrelation between service experience, satisfaction and loyalty in the café setting. Practical implications This study provides marketers and service managers a deeper understanding of improving customer satisfaction and loyalty through the control of servicescape attributes and social interactions in café contexts. Originality/value This research explores the significant impacts of café servicescape on social interaction quality (CEI and CCI). Additionally, it provides insights within the role of social interactions to customer’s affective and behavioral responses in service settings, especially the CCI quality.


2007 ◽  
Vol 16 (7) ◽  
pp. 459-468 ◽  
Author(s):  
David Martín‐Consuegra ◽  
Arturo Molina ◽  
Águeda Esteban

PurposeThe purpose of this paper is to investigate the effects of customer satisfaction both directly and indirectly (through loyalty) on price acceptance. In addition, price fairness is considered as an antecedent of customer satisfaction and loyalty.Design/methodology/approachBased on a theoretical discussion regarding the relationship among price fairness, customer satisfaction, loyalty, and price acceptance, empirical research was conducted to test the proposed relationships. Multiple‐item indicators from previous studies were employed to measure the constructs.FindingsThe results from the study provide empirical support, suggesting that perceived price fairness influences customer satisfaction and loyalty. The analysis also suggests that customer satisfaction and loyalty are two important antecedents of price acceptance.Research limitations/implicationsThe study ponders the relationship between customer satisfaction and loyalty and price acceptance, while other factors that have an influence on price acceptance are not considered.Practical implicationsThe research results suggest that perceived price fairness in service industries can be viewed as a threshold factor in order to maintain satisfied and loyal customers. Additionally, managers should consider that price acceptance depends on the level of satisfaction and loyalty.Originality/valueThe present study provides useful information on the relationship among price fairness, customer satisfaction, loyalty, and price acceptance in service industries.


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