Customer Satisfaction Is The Main Condition For Maintaining And Building Loyalty

  • Words 1166
  • Pages 3
Download PDF


To reach its goal and be effective, organizations must meet the requirements and needs of their customers. That is the reason why numerous analysts and scholars have continuously emphasized on the significance of client fulfillment, devotion and retention. Customer fulfillment is critical since numerous researches have appeared that customer fulfillment contains a positive impact on an organization’s profitability. Due to this, the results of client fulfillment and disappointment must be considered. There is additionally a positive association between client fulfillment, devotion and retention. In this manner, client fulfillment, dependability and maintenance are all very important for an organization to be effective.Key words: customer satisfaction, successful business, retention, devotion


Young generation of many states could hardly remember the time of scarcity. Nowadays more and more companies produce goods or provide services that are identical according to its quality and cost. Meet customers’ expectation, which can be presented by marketers as an assessment by the consumer of the quality of certain goods and services, can be a good strategy to attract their attention to build loyalty among consumers. In this paper the consequences of manager’s affect to the profitability and effectiveness of the business has been discussed. According to Grönroos(1984,1991) customers’ retention and loyalty is overwhelmingly a common administration talk, while some researches of the Nordic School’s see that administrations are profoundly intrigue, requiring a “service management” . Its discoveries back the hypothesis that client fulfillment is related to client dependability, which in turn is related to productivity (Heskett et al., 1994, and talked about in Storbacka et al., 1994). Whereas this hypothesis has been supported for benefit firms as a lesson, this paper presents an experimental examination of one retail bank, restricting the findings’ generalizability. Zairi (2000) in his researches mentioned “Customers are the purpose of what we do and rather than them depending on us, we very much depend on them. The customer is not the source of a problem, we shouldn’t perhaps make a wish that customers ‘should go away’ because our future and our security will be put in jeopardy”. Real customer’s loyalty appears, when he defends companies’ reputation and becomes an advocate for it without any profit or incentives. According to Hoyer and MacInnis points of view (2001), customer retention is “the practice of working to satisfy customers with the intention of developing long-term relationships with them”. Zineldin (2000) said that retention can be defined as “a commitment to continue to do business or exchange with a particular company on an ongoing basis”.

Click to get a unique essay

Our writers can write you a new plagiarism-free essay on any topic

Literature review

Customer satisfaction

Many researches unanimously state the importance and necessity of customers’ satisfaction and various versions of definitions were given and discussed. According to Kotler (2000) explains satisfaction as: “a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations”. Hoyer and MacInnis (2001) said that satisfaction can be associated with different feelings of humans as acceptance, happiness, relief, excitement, and joy. There are different causes and reasons influence to customers behavior, however most of them related to managerial skills and attitudes of the staff. Hokanson (1995) defined these skills and attitudes as variables and mentioned that these variables incorporate inviting employees, courteous workers, knowledgeable, helpful and polite employees, who are eager to create friendly atmosphere, supportive representatives, exactness of billing, charging opportuneness, competitive pricing, service quality, great esteem, charging clarity and fast serving abilities. In arrange to attain client satisfaction, organisations must be able to fulfill their customers’ needs and needs (La Barbera and Mazursky, 1983). Customers’ needs state the felt hardship of a client (Kotler, 2000). Whereas customers’ needs, agreeing to Kotler’s opinion (2000) “the frame taken by human needs as they are formed by culture and individual personality”. While Grönroos (1984,1991) motivates a hypothesis that customer satisfaction is the main condition for maintaining and building loyalty. According to Heskett et al. (1994) and later discussed in Storbacka et al. (1994) customer satisfaction in its turn related to the effectiveness and success of the company. Whereas this hypothesis has been pushed for firms which produce service as a course, this paper presents an experimental investigation of one retail bank, constraining the findings’ generalizability. The benefit benefit chain (Heskett et al., 1994) hypothesizes that: Client fulfillment –> client devotion –> productivity.

The inquire about displayed here, whereas incapable to illustrate causality since of its dependence on OLS relapse of cross-sectional information, does outline that client fulfillment, client dependability, and productivity are related to one another. In this way: Client fulfillment  client dependability  benefit.

Loyalty influence to the brand’ success

Customer loyalty caused by his satisfaction has an effective and positive influence to the productiveness and profitability of the company.

Coldwell in his research (2001): “Growth Strategies International (GSI) performed a statistical analysis of Client Fulfillment data encompassing the discoveries of more than 20,000 customer studies conducted in 40 countries all over the world by InfoQuest. The conclusion of the survey was: А) A Completely Fulfilled Client contributes 2.6 times as much income to a company as a o some degree Fulfilled Customer. В) A Completely Fulfilled Client contributes 17 times as much income as a Somewhat Dissatisfied Customer. С) A Completely Disappointed Client decreases revenue at a rate rise to  1.8 times what a Totally Fulfilled

Zairi (2000): “There are various considers that have looked at the affect of customer satisfaction on rehash buy, devotion and maintenance. He emphasizes, that they all pass on a comparable message in that: А) Fulfilled clients are most likely to share their encounters with other people to the arrangement of maybe five or six people. Equally well, disappointed clients are more likely to tell another ten individuals of their sad involvement. В) Besides, it is imperative to figure it out that many clients will not complain and this will vary from one industry segment to another. С) In conclusion, in the event that individuals accept that managing with customer satisfaction/complaint is costly, they have to be figure it out that it costs as much as 25 percent more to enlist new customers”.

Dissatisfied customer and a word of mouth

Do disappointed clients lock in in more or less word of mouth than fulfilled and brand loyal clients? There’s hypothetical and experimental back for both conceivable outcomes. To way better get it this issue, the creators worked out a utility-based survey of the relationship between client fulfillment and word of mouth. The hypothesized useful form-an hilter kilter U-shape-cannot be rejected based on information from the United States of Americ and Sweden. In expansion, the estimation comes about based on the two tests are comparable, proposing that the proposed relationship is generalizable. The discoveries too demonstrate that in spite of the fact that disappointed clients do lock in in more noteworthy word of mouth than fulfilled ones, common suppositions concerning the measure of this contrast show up to be overstated.

The results of not fulfilling customers can be serious and severe.  Hoyer and MacInnis mentions (2001), disappointed customers can decide to: А) cease acquiring the great or service, В) complain to the company or to a third party and maybe return the thing, or С) lock in in negative word-of-mouth communication. Customer fulfillment is vital because, according to La Barbera and Mazursky (1983), “satisfaction impacts repurchase intentions whereas disappointment has been seen as a primary reason for client surrender or discontinuation of purchase”.


OLS regression is utilized to look at the hypothesized connections. To extend the inside legitimacy of the comes about, different measures of fulfillment, dependability, and productivity were inspected at whatever point conceivable. Measures of client devotion were chosen since they reflected both length (maintenance) and profundity (cross offer) of the bank-customer relationship. Length of relationship is detailed by both division-reported client maintenance rates (rate of clients who remained clients amid 1993) and cruel customer-reported relationship residency. Relationship profundity is measured by division cross-sell rates, which record the rate of client families with numerous accounts (account cross offer) or numerous administrations (benefit cross offer). Benefit measures were decided based on their hypothesized relationship to client fulfillment and devotion. Both of the measures utilized, ROA and NIE/Rev (non-interest cost as a rate of add up to income), reflect benefit at the person division. See Roth (1993) for an examination of comparative execution measures in benefit firms. In the article methods as observation, abstract-logical thinking, systematic approach of secondary data have been used.


  1. Hallowell, R. (1996), ‘The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study’, International Journal of Service Industry Management, Vol. 7 No. 4, pp. 27-42.
  2. The Importance of Customer Satisfaction in Relation to Customer Loyalty and Retention Harkiranpal Singh Asia Pacific University College of Technology & Innovation Technology Park Malaysia Bukit Jalil, 5700 Kuala Lumpur, Malaysia May 2006
  3. LaBarbera, P. A. & Mazursky, D., 1983, A Longitudinal Assessment of Consumer Satisfaction, Dissatisfaction: the Dynamic Aspect of Cognitive Process, Journal of Marketing Research, Vol. 20, November, pp. 393-404.
  4. Hoyer, W. D. & MacInnis, D. J., 2001, Consumer Behaviour. 2nd ed., Boston, Houghton Mifflin Company.
  5. Zairi, M., 2000, Managing Customer Dissatisfaction Through Effective Complaint Management Systems, The TQM Magazine, 12 (5), pp. 331-335.
  6. Coldwell, J., 2001, Characteristics of a Good Customer Satisfaction Survey. In J. N. Sheth, A. Parvatiyar & G. Shainesh, eds., Customer Relationship Management, New Delhi, Tata McGraw-Hill , 2001, pp. 193- 199. .
  7. Storbacka, K., Strandvik, T. & Grönroos, C., Sept 1994, Managing Customer Relationships for Profit: The Dynamics of Relationship Quality, International Journal
  8. Kotler, P., 2000, Marketing Management. 10th ed., New Jersey, Prentice-Hall.
  9. Hokanson, S., January 2, 1995, The Deeper You Analyse, The More You Satisfy Customers, Marketing News, p. 16.
  10. Hoyer, W. D. & MacInnis, D. J., 2001, Consumer Behaviour. 2nd ed., Boston, Houghton Mifflin Company.


We use cookies to give you the best experience possible. By continuing we’ll assume you board with our cookie policy.