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Factors contributing to customer satisfaction

1141 words (5 pages) Essay in Marketing

5/12/16 Marketing Reference this

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For this study, literature review will be based on several theoretical concepts such as discusses the relationship between user loyalty, user perceived quality, user perceived value, user expectation, corporate image; complaint handling that affects the user satisfaction.

2.2 Customer satisfaction:

The growth in technology has enforced mobile operators to provide users with new features in their connection so that save existing users. The relationship between service quality and perceived value should be generously brought to a focus by the service provider in interest with user loyalty and satisfaction. User satisfaction is there in general, appraisal after using a service for a stage set a time. Different factors have different effect on users, these factors should be taken in order to account while making a strategy for user satisfaction. Heejin(2006).

In the business when discussing factors for service provider quality of service, user loyalty and user satisfaction are becoming prominent. That is why high service quality should be focused for greater user loyalty to achieve higher user satisfaction and to gain exceptional competitive advantage, keep for the future user satisfaction the operator should not ignore reliability and assurance because there is a positive effect of reliability, assurance, and network quality and user loyalty on their satisfaction (Hing-Po 2002).

While both service quality and customer satisfaction have certain things in common, satisfaction is generally viewed as a broader concept than service quality assessment; thus, perceived service quality is a component of customer satisfaction (Zeithaml and Bitner, 1996).

Attempts to understand customer satisfaction formation have yielded several important insights. For example, disinformation and perceived quality were found to affect customer satisfaction more than expectations (Churchill and Surprenant, 1982) and expectancy-disinformation (Oliver and DeSarbo, 1988; Yi, 1990). Anderson and Sullivan (1993) also showed satisfaction to be a function of disinformation and perceived quality.

Accordingly, customer satisfaction programs were touted as important tools that can increase profits by preventing customers from defecting (Reichheld and Sasser, 1990).

Customer satisfaction usually regarded as customer reaction to the state of fulfillment and customer judgment of the fulfilled state (Oliver, 1997). Customer satisfaction is completely worried with the services provided to and perceived by the customers, if there is high similar between perceived and provided services than the customer satisfaction level is very high that directly leads to high customer loyalty for mobile service providers (MSP) and the opposite. There are many benefits for a company from a high customer satisfaction level, they imprison a high market share and able to keep and maintain it: a basic and core policy of every business that heightens customer loyalty and prevents customer switching costs, increases customer price tolerance, reduces marketing cost (Fornell, 1992).

2.4 User perceived quality:

In recent years, there was the increasing importance of service quality and customer satisfaction in business and academia alike. Sureshchandar et al, (2003) and determined that the balance of power between service quality and customer satisfaction with an emphasis on these two constructs is the concept differs from the view of customers.

According to customer perception Kim et al, 2004) Perceived quality depends upon the mixture of experience, word of mouth and the future intuition of quality of the mobile service. Every mobile user requires best quality accordingly. Since companies are going on continuous improvement in quality through the latest technology, installing costly equipments, trying to improve call clarity and coverage.

It is also observed that customer satisfaction is also dependent on perceived quality and has the positive role towards the dependent. Similarly, user loyalty also have stronger link with user satisfaction. Therefore, proper care should be taken while formulating any long term policy for user satisfaction. At last for building user loyalty, user satisfaction is a main determinant (Serkan 2005).

Perceived quality is the limit up to which the product or service provided the necessary needs of users with more satisfaction.

They were seen consumer expectations and services to be main precedents for the perceived service quality Measures the quality of service that focuses on a variety of such physical aspects, reliability and speed of response, and to ensure sympathy (Parasuraman et al, 1985).

(Zeithaml and Bitner, 1996) said both service quality and customer satisfaction has convinced things in common, satisfaction is generally observed as a broader concept than service quality assessment; thus, perceived service quality is a component of customer satisfaction.

2.6 User perceived value:

According to Heinonen (2004) defined perceived value as “the consumer’s overall assessment of the utility of a product based on perceptions on what is received and what is given.” Firms are able to enhance customer satisfaction by creating customer value through a lot of means such as providing customers with the comparative net value, the effectiveness, efficiency, and differentiation of services, which can be delivered via logistics (Langley & Holcomb 1992). Both time and place of service delivery are indicated to be important dimensions of customer perceived value, and when or where the service is delivered should be determined by consumers rather than by companies.

User perceived value is related to the price extent of mobile services. Because all the businesses in the world are done for profit so investment in mobile industry is also for some advantage in terms of profits. So those fulfill the basic and awaited customer value companies do not have to put so much effort into what they are doing (Gunnar & Malin, 2006). Given that everyone in the world is seeking his/her benefits so customers are also anticipating benefits in terms of values. Intentions to adopt or refuse a mobile service seem to be determined to a greater degree by perceived benefits than by a perceived limit (Ancker et al, 2003). As MSPs are investing a lot but still there are match poorly in the real and perceived value of the customers, latest survey by Barnhoorn (2006) show that although there is progress but still perceived value from the telecom players has the lowest achieve, this is risen from 71% in 2005 to 76% in 2006. However, how and to which extent MSPs are charging their customers and give the value to the customers. MSPs have to increase the switching cost in order to increase natural life customer value and customer retention by implementing relationship-oriented marketing strategies (Hankel et al, 2006). As the companies give high value to customers in terms of charges than a satisfaction level gets high that leads to customer loyalty.

The influence of value on customer satisfaction is studied by Cottet, LichtlĂ©, and Plichon (2006). By adopting the definition proposed by Holbrook (1996, 1999), they defined customer perceived value as “an interactive, preferential and relative experience.” Results of their research reveal that both utilitarian and hedonic values are positively associated with customer satisfaction, and further, hedonic value is suggested to be more important for customer satisfaction than a utilitarian value.

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