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
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…
Customer satisfaction is essential for success of any business firm. This is because it is responsible of repeated purchases. Attracting new customers is not enough for a hotel business to be successful. The management must focus on retaining the existing customers.
Companies provide products and services along with satisfaction to customers; in turn, such businesses acquire profits. Research on the service sector and the quality of services that they offer emphasizes the need for service providers to meet or exceed the expectations of customers, thereby enhancing their levels of satisfaction (Voss, Roth, Rosenzweig, Blackmon, and Chase, 2004).
For this purpose, it is important to measure customer satisfaction on regular basis in order to understand their needs, wants and demands so that final product can be developed that not only gives maximum value to the customers but also helps in realizing valuable profits.
What this means for the organization under consideration is that it has to implement service quality which has never been seen by the people at large, and which shall change the course of their actions in the coming times. The importance is derived from the understanding that service quality shall be enhanced to serve the people better and to give them diligence which would be exhibited in more than a single way.
As the paper declares organizations in both the private and public sector have been affected by various economic hardships and competition whereby organizations have to fight for the attention of the customers. Government agencies are now required to account for and minimize expenditure and upgrade services delivered to the citizens.
What is the objective of the study? The objective of the study is to determine the consumer guided relationship between service quality and consumer satisfaction concepts. State a problem that the researchers are trying to find answers in this study. The problem that researchers are trying to find answers to in the study is whether or not customer satisfaction and service quality and have consequential effects, distinct antecedent causes, or both.
It imposes significant impacts upon customers’ satisfaction level through forming along with developing effective interrelation with them (Naeem & et. al., 2013). With this concern, the research paper intends to build an effective marketing plan for Holden Trucking, focusing upon the significant aspects of IMC and customer satisfaction accordingly.