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Review of literature on customer satisfaction

Review of literature on customer satisfaction

review of literature on customer satisfaction

Improving your measurement of customer satisfaction: a guide to creating, conducting, analysing, and reporting customer satisfaction measurement programs, American Society for Qualit. p 5 Oliver () “Theoretical Bases of Consumer Satisfaction Research: Review, critique, and future direction Customer satisfaction (often abbreviated as CSAT) is a term frequently used in blogger.com is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified Levels of Customer Satisfaction. When discussing categories of customer satisfaction levels, Williams and Buswell () refer to Oliver’s theory that divides potential customer satisfaction levels into three categories: First, negative disconfirmation happens when the level of service turns out to be worse than expected by the customer



(PDF) THEORIES OF CUSTOMER SATISFACTION | JULIUS MODEST - blogger.com



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A short summary of this paper. Many theories have been used to understand the process through which customers form satisfaction judgments. The theories can be broadly classified under three groups: Expectancy disconfirmation, review of literature on customer satisfaction, Equity, and Attribution.


Four psychological theories were identified by Anderson that can be used to explain the impact of expectancy or satisfaction: Assimilation, Contrast, Generalised Negativity, and Assimilation-Contrast.


Second, consumption of or experience with the product or service produces a level of perceived quality that is influenced by expectations. If perceived performance lags expectations substantially, contrast will occur, and the shortfall in the perceived performance will be exaggerated.


The Satisfaction Function 7 Fig. Performance exceeds expectations, satisfaction increases, but at a decreasing rate. As perceived performance falls short of expectations, the disconfirmation is more. Satisfaction can be determined by subjective e. customer needs, emotions and objective factors e. product and service features. Applying to the hospitality industry, there have been numerous studies that examine attributes that travellers may find important regarding customer satisfaction.


Service quality and customer satisfaction are distinct concepts, although they are closely related. Four theoretical approaches have been advanced under the umbrella of consistency theory: 1 Assimilation theory; 2 Contrast theory; 3 Assimilation-Contrast theory; and 4 Negativity theory. Dissonance theory posits that consumers make some kind of cognitive comparison between expectations about the product and the perceived product performance. Assimilation Theory — Criticism Payton et al argues that Assimilation theory has a number of shortcomings.


First, the approach assumes that there is review of literature on customer satisfaction relationship between expectation and satisfaction but does not specify how disconfirmation of an expectation leads to either satisfaction or dissatisfaction.


Contrast Theory Contrast theory was first introduced by Hovland, Harvey and Sherif Conversely, under-promising in advertising and over-delivering will cause positive disconfirmation also to be exaggerated. Contrast Theory — Criticism Several studies in the marketing literature have offered some support for this theory. when product performance is difficult to judge, expectations may dominate and assimilation effects will be observed… contrast effect would result in high involvement circumstances.


Assimilation-contrast theory Source: Adapted from Andersonp. If performance falls within the latitude of rejection no matter how close to expectationcontrast will prevail and the difference will be exaggerated, the product deemed unacceptable. Olson and Dover and Anderson found some evidence to support the assimilation theory approach, review of literature on customer satisfaction. In discussing both of these studies, however, Oliver a argues that only measured expectations and assumed that there were perceptual differences between disconfirmation or satisfaction.


Negative theory states that when expectations are strongly held, consumers will respond negatively to any disconfirmation, review of literature on customer satisfaction. Basically, satisfaction is the result of direct experiences with products or services, and it occurs by comparing perceptions against a standard e.


Cognitive Dissonance Theory Cognitive dissonance is an uncomfortable feeling caused by holding two contradictory ideas simultaneously, review of literature on customer satisfaction.


The theory of cognitive dissonance proposes that people have a motivational drive to reduce dissonance by changing their attitudes, beliefs, review of literature on customer satisfaction behaviours, or by justifying or rationalizing them. jpg 2. Cognitive Dissonance Theory — Criticism Although cognitive dissonance is a well-established construct in consumer behaviour research, applications are relatively scarce in current marketing research projects.


The reasons are: First, dissonance is often as merely a transitory phenomenon. Second, problems of measurement as well as difficulties in administering data collection often get in the way of empirically addressing cognitive dissonance.


Adaptation-level Theory Adaptation-level theory is another theory, which is consistent with expectation and disconfirmation effects on satisfaction. This theory was originated by Helsen in and applied to customer satisfaction by Oliver. The standard is a function of perceptions of the stimulus itself, the context, and psychological and physiological characteristics of the organism.


Review of literature on customer satisfaction Theory - Criticism This theory is gaining acceptance, as it is able to explain some counter- intuitive predictions made by assimilation-contrast theories. Oliver Fig. Expectation review of literature on customer satisfaction disconfirmation effects on satisfaction consistent with adaptation-level theory.


Source: Oliverp. Solomon and Corbin The onset of the opponent process totally dependent on the effect of the primary process, in which an emotional review of literature on customer satisfaction is initiated by a known stimulus.


Oliver If the initial stimulus is eliminated to reduce completely or partially the primary process effect, the opponent process will continue to operate at a decaying rate determined by inertia factors. Operation of Opponent-process phenomena as applied to customer satisfaction and its determinants.


Therefore, the degree to which satisfaction is achieved depends upon the magnitude of disconfirmation as well as upon the strength of the opponent process. As applied to customer satisfaction research, satisfaction is thought to exist when the customer believes that his outcomes to input ratio is equal to that of the exchange person.


Equity Theory — Criticism In the handful of studies that have examined the effect of equity on customer satisfaction, equity appears to have a moderate effect on customer satisfaction and post-purchase communication behaviour. This may be done either by lowering expectations review of literature on customer satisfaction the fact or, in the case of subjective disconfirmation, positively increasing the perception of performance.


Hypothesis Testing Theory A two-step model for satisfaction generation was suggested by Deighton Second, Deighton believes, customers will tend to attempt to confirm rather than disconfirm their expectations. Vavra, T. Hypothesis Testing Theory Deighton suggested a two-step model for satisfaction generation. Second, customers will tend to attempt to confirm rather than disconfirm their expectations.


Different models clarify different theories of customer satisfaction. SERVQUAL The SERVQUAL instrument has been widely applied in a variety of service industries, including tourism and hospitality. The instrument was used to measure hotel employee quality as well. SERVQUAL addresses many elements of service quality divided into the dimensions of tangibles, reliability, responsiveness, review of literature on customer satisfaction, assurance, and empathy.


Satisfaction positive disconfirmation occurs when product or service is better than expected. GCCs are usually distributed in hotel rooms, at the reception desk or in some other visible place. However studies reveal that numerous hotel chains use guest satisfaction evaluating methods based on inadequate practices to make important and complex managerial decisions.


It reduces non-responsive bias by offering incentives for completing the questionnaires. The components of their questionnaire are based on disconfirmation paradigm and expectancy-value theory.


In this manner guests can indicate whether service was above or below their expectations 71 and whether they considered a particular service important or not.


Schall discusses the issues of question clarity, scaling, validity, survey timing, question order, and sample size. SERVQUAL is based on five dimensions of service: 1.


Tangibility: Tangibility refers to the physical characteristics associated with the service encounter. Gap Model of Service Quality Source: Zeithaml and Bitner 3. Criticism — SERVQUAL Though SERVQUAL has been generally robust as a measure of service quality, the review of literature on customer satisfaction has been criticised on conceptual and methodological grounds.


The Kano et al model of customer satisfaction classifies attributes based on how they are perceived by customers and their effect on customer satisfaction. basic or expected attributes, 2 performance or spoken attributes, and 3 surprise and delight attributes. The Kano Model Source: Kano, Seraku et al. The basic or expected attributes are as the meaning implies the basic attributes without any major significance of worth mentioning.


Kano model measures satisfaction against customer perceptions of attribute performance; 80 grades the customer requirements and determines the levels of satisfaction.


In his model, Kano Kano, distinguishes between three types of basic requirements, which influence customer satisfaction. They are: 1 Must be requirements — If these requirements are not fulfilled, the customer will be extremely dissatisfied.


The additional attributes, which Kano mentions, are: Indifferent attributes, Questionable attributes, and Reverse attributes. ACSI Methodology The American Customer Satisfaction Index ACSI was launched in The ACSI model is a cause-and-effect model Fig-6 with indices for drivers of satisfaction on the left side customer expectations, perceived quality, review of literature on customer satisfaction, and perceived valuesatisfaction ACSI in the centre, and outcomes of satisfaction on the right side customer complaints and customer loyalty, including customer retention and price tolerance.


The ACSI uses two interrelated and complementary methods to measure and analyze customer satisfaction: customer interviewing and econometric modelling. ACSI Model Source: ACSI Methodology, www. org Vavra, T. Contribution: to provide a conceptual framework for understanding how service and product quality relate to economic indicators 3. Casual sequence begins with customer expectations and perceived quality measures, as shown in the Fig. ACSI data is used by academic researchers, corporations and government agencies, market analysts and investors, industry trade association, and consumers.


HOTELZOT A modified version of SERVQUAL The conceptual model HOTELZOT measures the zone of tolerance in hotel service by incorporating two levels of expectations — desired and adequate. Adequate expectations represent a lower level of expectations, review of literature on customer satisfaction. Desired expectations are deemed to remain relatively stable over time, whereas adequate performance expectations might vary with time.




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Concepts of Customer Services and Customer Satisfaction: Introduction


review of literature on customer satisfaction

Aug 03,  · Patient satisfaction is a growing concern in all aspects of healthcare, and as the voice of the customer, it is a measure of quality that is published in the USA through its Healthcare Effectiveness Data and Information Set, and it can be tied to reimbursements from the Center for Medicare and Medicaid through results of Hospital Consumer Sep 18,  · Customer satisfaction is a psychological concept that involves the feeling of well-being and pleasure that results from obtaining what one hopes for and expects from an appealing product and/or service. Customer satisfaction definition is based on Improving your measurement of customer satisfaction: a guide to creating, conducting, analysing, and reporting customer satisfaction measurement programs, American Society for Qualit. p 5 Oliver () “Theoretical Bases of Consumer Satisfaction Research: Review, critique, and future direction

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