Pages 7 (1757 words)
Due to rapid development of service industry, a consideration should be given to analysis of all constitutes of successful service delivery. The success of a company operating in a service industry is dependant on the quality of the service a company provides.
Thus, prior to direct interaction with the service, consumers form own expectations about experiences related to the service consumption. In such way, customers establish own standards against which in the future the quality of the service received will be compared in accordance with the disconfirmation model. In case if the expectations about the service consumption were greater then the actual quality of product received, the outcome is negative disconfirmation or, in the other words, dissatisfaction with the service received. Whereas, if the expectations were smaller then the quality of the services received, the outcome is positive disconfirmation or product satisfaction. (Lovelock, C., & Wirtz, J. 2004). The higher customer satisfaction is, the greater is the possibility of customer loyalty in the post consumption stage. Thus, customer satisfaction and loyalty are directly related. The concept of customer loyalty is of vital importance as repurchase of services gives significant advantages to the service producer: a continuous stream of profit, reduction of marketing costs, growth of per-customer revenue, decrease in operating costs, increase in referral, increase in price premium (Youjae, Y., Suna, L. 2004). In relation to the customer loyalty, the service recovery concept should be emphasized, as customer loyalty is often seen as a consequence of successful service recovery. ...