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Service Quality and Customer Satisfaction - Research Paper Example

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Service Quality and Customer Satisfaction

Customer satisfaction is the outcome felt by those who have experienced a company’s performance that met or exceeded their expectations. Some researchers highlighted the importance of customer satisfaction and do see that customer satisfaction has a positive effect on organization’s profitability. Evidence also shows the positive connection between customer satisfaction, loyalty and retention. Customer loyalty refers to a deeply held commitment to re-buy a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior. The aim of this research is to study the impact of service quality on both customer satisfaction and customer loyalty and the overall effect on business and profitability. Chapter One: Introduction 1.1 Problem Statement This research studies the impact of service quality on customer satisfaction which in turn affects the overall business performance and accordingly the overall organizational profits and its market value. 1.2 Importance of the study In today’s dynamic market, competition has become very tough and the product no more became the competitive advantage, in contrast the service quality became the driver of today’s business and what differentiates organizations as today’s customer became more sophisticated and much more knowledgeable with access to global markets and information, accordingly, customer satisfaction became the center of attention and organizations heading more and more towards a customer centered perspective 1.3 Research Questions Does service quality really matter? What kind of competition exists in today’s marketplace? What is customer satisfaction? Can it be measured? Does customer satisfaction lead to customer loyalty? What is the relation between quality of service and customer satisfaction? How can customer satisfaction impact the business performance and company value? Chapter Two: Service quality 2.1 Service Quality in a Nutshell Service quality is a concept that defines the relationship between expectations and performance of a business. It is based on the knowledge that a company with high quality of service will fulfill the needs of the customer while retaining their economic competitiveness (Jean, 2000). Economic rivalry is increased by the improvement in the quality of service. This objective may be attained by comprehending and developing the operational methods, recognizing the problem swiftly and categorically creating an authentic and dependable service delivery measures and assessing the satisfaction of customers and other performance output. In other words, service quality is a term that is applied by a company’s administration to define the success in service. It replicates at every service delivery. Customers draw their anticipations from their previous experiences, adverts and from word of mouth (Anand, 2010). Universally, consumers contrast the service obtained with anticipated whereby in case the former is underachieved compared to the latter the consumers get dissatisfied. 2.2 Is Service Quality that Important? One of the significant parts of the quality management is giving the customer service required. The business has faith in giving ...Show more

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Service Quality Name Name of Institution Date Abstract In today’s globalized world characterized by very fast pace, open markets and the huge shift of the information technologies, the world has become a small village and anyone can reach anywhere he wants, this in turn created a fierce atmosphere of competition whereas a product differentiation is becoming harder due to imitation and low cost production in emerging economies…
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