The Importance of Customer Satisfaction and Customer Loyalty in the Service Sector

2017 ◽  
pp. 59-82 ◽  
Author(s):  
Kijpokin Kasemsap
Keyword(s):  
Customer Satisfaction ◽  
Organizational Performance ◽  
Customer Loyalty ◽  
Service Sector ◽  
Brand Management ◽  
Value Added ◽  
Switching Behavior ◽  
Travel Agency ◽  
Mobile Service ◽  
Service Company

This chapter presents the overview of customer satisfaction; customer satisfaction and service quality; customer satisfaction and Online Travel Agency (OTA) websites in the tourism industry; customer satisfaction and switching behavior in the mobile service company; the overview of customer loyalty; the advanced issues of customer loyalty program; and the relationships among customer loyalty, customer satisfaction, brand management, and social media. Creating loyalty among customers can help service company significantly increase the purchases of existing products, charge premium prices for the appreciation of value-added services, and create the positive word-of-mouth promotion for the company, which is the significant marketing objective in the service sector. The chapter argues that facilitating customer satisfaction and customer loyalty has the potential to enhance organizational performance and gain sustainable competitive advantage in the service sector.

The role of customer experience touchpoints in driving loyalty intentions in services

2018 ◽  
Vol 30 (5) ◽  
pp. 444-457 ◽  
Author(s):  
Marco Ieva ◽  
Cristina Ziliani
Keyword(s):  
Customer Loyalty ◽  
Service Sector ◽  
Service Providers ◽  
Management Strategies ◽  
Customer Experience ◽  
Ordinary Least Squares ◽  
Mobile Service ◽  
Least Squares Regression ◽  
Content Type ◽  
Loyalty Intentions

Purpose The explosion in the number of touchpoints is putting pressure on companies to design omnichannel customer experiences aimed at achieving long-term customer loyalty. The purpose of this paper is to examine the relative importance of 24 touchpoints in contributing to customer loyalty intentions. Design/methodology/approach Data were collected by means of a survey on almost 6,000 subjects belonging to the Nielsen consumer panel. Two ordinary least squares regression models with clustered standard errors estimate the relationship between touchpoint exposure – measured in terms of reach, frequency and positivity – and customer loyalty intentions in the mobile service sector. Findings Reach has a significant relationship with customer loyalty intentions as far as eight touchpoints are concerned. Positivity, when controlling for frequency of exposure, is related to customer loyalty intentions as far as nine touchpoints are concerned. Practical implications Results provide guidance for mobile service providers on customer experience management strategies and specifically on touchpoint prioritization, adaptation, monitoring and design. Originality/value This study addresses two relevant research gaps. First, most studies focus on single or a few touchpoints without considering the variety of touchpoints within the customer journey (Lemon and Verhoef, 2016). Second, no studies focus on the relative contribution of touchpoints to customer loyalty intentions (Homburg et al., 2017).

Service Quality Dimensions and Customers' Satisfactions in Mobile Communications

2016 ◽  
Vol 4 (1) ◽  
pp. 38-45
Author(s):  
S. Sakthivel Rani ◽  
S. Kannan
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Mobile Communications ◽  
Global Economy ◽  
Service Providers ◽  
Relative Effect ◽  
Primary Data ◽  
Mobile Service ◽  
The World ◽  
Switching Barriers

Objective - The world is moving towards continuous and ubiquitous availability of information. Entry of private operators in 1990's, competition has caused prices to drop and calls across India are one of the cheapest in the world. Technological advances combined with forces of globalization resulted in the transformation of the economy, industries, markets and customers resulting in a connected knowledge economy, borderless global economy, globalizing, covering and consolidating industries, fragmenting and frictionless markets and active, connected, informed and demanding customers. The objective of this research is to ascertain the constructs like customer satisfaction towards the mobile phone service providers, switching barrier and the customer loyalty factors. Methodology/Technique - Respondents in the study are the customers who use mobile phones. Primary data were collected with the help of the specially designed questionnaire, which was administered to the mobile users. The final questionnaire was pre-tested on 40 respondents and the coefficient values are all above .8 thus meeting Nunnaly's recommendation of greater than 0.7 as the acceptable reliability level. The overall alpha value was 0.8 and the instrument consists of customer satisfaction regarding the mobile service providers, which includes factors like price (5 items, 0.816), network coverage (4 items, 0.795), customer service (5 items, 0.852) and usage (8 items, 0.884). Switching barriers factors consists of 28 items like credibility factors (8 items, 0.863), congruency factors (7 items, 0.816), switching cast (8 items, 0.871), and value (5 items, 0.900). Final part of the instrument includes 17 customer loyalty factors like trust (7 items, 0.858), commitment (4 items, 0.848), word of mouth (3 items, 0.779) and cooperation (3 items, 0.691). Findings - Gender, location of the customers and service providers has a significant association with level of customer satisfaction. Gender and occupation have a significant association with level of customer switching barriers. Hierarchical regression analysis was used to analyze the main effect and the adjustment effect of those switching barrier factors and the relative effect. The contribution is that this study reviews theoretically and verifies empirically the relationship and mechanism between the customer retention and the switching barrier. Type of Paper - Empirical Keywords: Customer satisfaction factors; switching barrier factors; Customer loyalty factors.

Interrelationships and consequential effects among technological innovation, service consistency, customer satisfaction and loyalty in banking

2017 ◽  
Vol 6 (3) ◽  
pp. 51
Author(s):  
Asare Yaw Obeng ◽  
Mkhize L Peter
Keyword(s):  
Customer Satisfaction ◽  
Technological Innovation ◽  
Customer Loyalty ◽  
Value Added ◽  
Innovative Product ◽  
Critical Factors ◽  
Quality Product ◽  
Innovative Products ◽  
Customer Satisfaction And Loyalty

<p>The key to long-term success in banking is consistent improvement and delivering of quality product and or value-added service that conform to the expectations of customers. IT-innovative products/services and processes (technological innovation) facilitate these key elements of customer satisfaction and critical factors for retaining valued customers. The objective of this paper is to explore the effects of technological innovation on service consistency and the consequential effects on customer satisfaction and loyalty covering seven universal banks in Ghana. The results of the empirically tested model reveal new/improved product/process functionalities, service consistency and innovative product/process satisfaction contribute significantly to customer loyalty (<em>p &lt; 0.001</em>). Service consistency has a marginal higher impact (<em>β </em>= .373) on customer loyalty than the others. Product/process quality contributes significantly (with <em>β</em> ranging from .345 to .742 and <em>p &lt; 0.001</em>) to each of the above three antecedents than all other items.</p>

scholarly journals PENGARUH CUSTOMER VALUE TERHADAP CUSTOMER SATISFACTION DAN CUSTOMER LOYALTY SEBAGAI STRATEGI MENUJU BISNIS BERKELANJUTAN PADA FAKULTAS EKONOMI DAN BISNIS UNIVERSITAS TRISAKTI

2017 ◽  
Vol 1 (2) ◽  
Author(s):  
Eko Retno Indriyani
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Significant Influence ◽  
Customer Value ◽  
Structural Equation ◽  
Service Sector ◽  
Positive Influence ◽  
Service Value ◽  
Relationship Value ◽  
Significant Positive Influence

Customer value is important factors that influence sustainable businses both real sector and service sector. This <br />research ia aimed to examine and analysis the relationship among customer value, customer satisfaction and <br />customer loyalty. This stydi was conducted at Economic and Business Facutlty of Trisakti University which took <br />180 student as respondents. Using Structural Equation Model, the result shows dimension service value and <br />relationship value of customer value have significant positive influence to customer satisfaction, while dimension <br />core value product of customer value has no significant influence to customer satisfaction. Customer Satisfacation <br />has positive significant influence to Customer Loyalty, only dimension core of value of customer value has <br />significant positive influence to Customer Loyalty while dimension of service value and relationship value have no <br />significant positive influence to customer loyalty.

scholarly journals Modeling the rationality of customers’ switching mobile services behavior

2019 ◽  
Vol 11 ◽  
pp. 184797901986541 ◽  
Author(s):  
Sa’Ed M Salhieh
Keyword(s):  
Customer Loyalty ◽  
Service Provider ◽  
Rational Choice Theory ◽  
Choice Theory ◽  
Service Providers ◽  
Mobile Services ◽  
Switching Behavior ◽  
Mobile Service ◽  
Logistics Regression ◽  
True Choice

This article analyzes the rationality of customer’s behavior when switching mobile services. Customer rationality is manifested by selecting the service provider capable of delivering the highest amount of benefits to the customer. A model based on multinomial logistics regression that makes use of the rational choice theory is developed to emulate customers’ service switching behavior and predicts the probability of switching mobile services. Customer rationality is assessed by comparing the choice predicted by the model with the true choice of customers and rationality is considered as achieved when a customer chooses a service provider that maximizes his/her benefit. The model was tested and validated by modeling the behavior of customers in the Jordanian telecommunication market and a rationality assessment was conducted. The results show that mobile service customers in Jordan are making rational decisions and would be willing to switch their current service provider if offered a better service. The study encourages service providers to challenge their assessment of customer loyalty and investigate new ways to enhance customer experience and guarantee customer loyalty.

scholarly journals FACTORS AFFECTING CUSTOMER LOYALTY FOR MOBILE SERVICE PROVIDERS

2020 ◽  
Vol 12 (0) ◽  
pp. 1-10
Author(s):  
Miglė Vyšedvorskytė ◽  
Neringa Vilkaitė-Vaitonė
Keyword(s):  
Customer Loyalty ◽  
Service Sector ◽  
Service Providers ◽  
Mobile Service ◽  
Consumer Loyalty ◽  
Factors Affecting ◽  
Mobile Phone User ◽  
The Future ◽  
Phone User

Intense competition in the mobile services market encourages these service providers to take measures to create, maintain and enhance consumer loyalty. In such a concentrated market, it becomes important for service providers to identify and enhance the factors determining customer loyalty and their expression, whereas maintaining existing users requires significantly less effort and financial, human and time resources than attracting new ones. This article deals with a case study of Lithuania’s mobile operators: UAB “Bitė Lietuva”, UAB “Tele2”, UAB “Telia” in the context of consumer loyalty. The paper raises the question of what factors influence mobile phone user loyalty and how these factors can be evaluated. The article presents theoretical analysis of factors determining consumer loyalty in the service sector. An expert evaluation and multi-criteria study reveals which loyalty factors have the strongest influence on customers of mobile operators when choosing a particular service provider in Lithuania. The relevance of this article has potential for a practical study of consumer loyalty factors in the future. In the future, the research may be continued on a larger scale, involving more companies in the telecommunications sector, choosing research methods that are suitable for a broader sample of research and formulating consumer loyalty enhancement solutions applicable exclusively to organizations in the industry.

scholarly journals Customer loyalty and switching behavior of customer for Pepsi in Pakistan

2014 ◽  
Vol 4 (2) ◽  
pp. 129 ◽  
Author(s):  
Khadim Hussain ◽  
Muhammad Rizwan
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Switching Behavior ◽  
Factors Affecting ◽  
Affective Factors ◽  
Switching Behaviour ◽  
Utilitarian Value ◽  
Study Results ◽  
Input Variables ◽  
Intervening Variables

Intention to switch from one service provider to another, leads to switching behaviour, which results in the decrease of profits of the company. Switching behaviour helps in creating relationship between consumer and producer. In this research we study and investigate the effect of switching behaviour, customer satisfaction, habit, and utilitarian values on customer loyalty. The customer satisfaction, habit and utilitarian value were determined to be input variables, switching behaviour were determined to be intervening variables; and customer loyalty was determined to be the output variable. The model was designed to explain the factors affecting the customer loyalty. Our study based on a self-administered survey that was conducted in Bahawalpur setting. Data were collected from the randomly selected 150 Pepsi product consumers. Our study results provide a better understanding about the role played by each factor in the development customer loyalty and highlights the key role played by affective factors.

scholarly journals Predictors Of Customer Loyalty To Mobile Service Provider In South Africa

2013 ◽  
Vol 12 (12) ◽  
pp. 1631
Author(s):  
Richard Chinomona ◽  
Maxwell Sandada
Keyword(s):  
South Africa ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Future Research ◽  
Mobile Service ◽  
Data Set ◽  
Managerial Implications ◽  
Customer Intimacy ◽  
Customer Trust

In spite of the increasing research on consumer behaviour, there is a dearth of studies that have investigated the influence of mobile provider service quality in customer satisfaction regarding customer trust and loyalty in the African mobile communication context. Therefore, this study examines the relationships using a data set of 151 mobile service clients in Gauteng Province of South Africa. All the posited five hypotheses are supported. The results indicate that the relationships between mobile service quality-customer satisfaction, customer satisfaction-customer trust, customer satisfaction-customer intimacy, customer trust-customer loyalty, and customer intimacy-customer loyalty are positive in a significant way. The research paper discusses both academic and managerial implications of the results and future research directions are suggested.

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