Customer Satisfaction

Abstract

Customer satisfaction, the cornerstone of the marketing concept, has been the subject of considerable research. Since 1970 over 15,000 academic and trade articles have been written on the subject. Salespeople, frequently the primary link between the company and the customer, have the opportunity to deliver/improve customer satisfaction. It is not surprising therefore that organizations seek to maximize salesforce performance and resolve customer complaints. However, attaining optimal performance is hindered by dysfunctional salesperson behavior and low levels of customer satisfaction. Research that improves our understanding of the critical roles salespeople and sales managers play in determining customer satisfaction is needed. A proposal that ties the theoretical gaps in the communication processes with the salesperson's role in affecting customer satisfaction is presented.     

Estimating Firm-Specific and Relational Properties in Interorganizational Relationships in Marketing

ABSTRACT

This research attempts to distinguish empirically between the potential influence of a manufacturer as compared to the influence of a manufacturer's salesperson over an industrial distributor. Given the existence of such a distinction, the scope of such influence is examined with regard to a distributor's business in eight different areas of potential influence: price, order quantity, product line, advertising and sales promotion, customer service, inventory, customer credit, and display. Data were collected from 412 industrial distributors in a marketing channel. The authors utilized regression analysis to distinguish between manufacturer and manufacturer salesperson power. Then, factor analysis was utilized to determine if the salesperson does have power over policy areas apart from that of the manufacturer. Research results suggest that the manufacturer's salesperson, compared with the manufacturer, possesses a different domain of power than does the manufacturer in a channel containing an industrial distributor.     

Mediating role of customer forgiveness between perceived justice and satisfaction

The relationship between perceived justice facets and satisfaction is well discussed in literature. The aim of this study is to test the mediating impact of customer forgiveness between justice facets and satisfaction in the context of Pakistan's banking industry. Structural equation modelling was employed to test the proposed hypotheses by using the data of 453 bank customers of domestic banks in Pakistan. Results of the study indicate that customer forgiveness mediates the relationship between justice facets and satisfaction. However, the direct impact of procedural justice on satisfaction was insignificant. Such findings have implications to theory and practice. In theory, it proposes and tests new linkages. In practice, managers need to consider that not only the justice facets but customer forgiveness is also an important predictor of satisfaction.     

Personal characteristics as moderators of the relationship between customer satisfaction and loyalty—an empirical analysis

Previous empirical research on the relationship between customer satisfaction and loyalty has largely neglected the issue of moderator variables. In a consumer‐durables context the authors analyze the moderating effect of selected personal characteristics on the satisfaction–loyalty link. The empirical findings, which are based on multiple‐group causal analysis, show that the strength of the relationship between customer satisfaction and loyalty is strongly influenced by characteristics of the customer. Specifically, variety seeking, age, and income are found to be important moderators of the satisfaction–loyalty relationship. © 2001 John Wiley & Sons, Inc.     

The Impact of Salesperson Perception of Firm Market Orientation on Behaviors and Consulting Effectiveness

The purpose of this study was to study market orientation as an antecedent of salespersons' behaviors that should, in turn, influence the ability of the salesperson to add value to the product or service. There have been many studies of personal antecedents of salespersons behaviors and performance, with little predictive success. But there are few studies of firm-level influences on salesperson behaviors and their outcomes. A survey was sent to non-retail salespeople utilizing previously validated scales for all constructs of interest. The survey responses were analyzed using structural equation modeling to test hypotheses. Results suggest that market orientation has an indirect influence on salesperson consulting through adaptive selling and active listening behaviors. Active listening fully mediates the relationship between customer orientation and salesperson consulting, while salesperson consulting fully mediates the relationship between active listening and consulting effectiveness. Half of the influence of market orientation on salesperson consulting effectiveness is direct, while the other half of its influence is indirect through those salesperson behaviors. The author provides explanations for these results and implications for managers and researchers.     

What drives product involvement and satisfaction with OFDs amid COVID-19?

Online food delivery services (OFDs) have gained the attention of researchers due to the rapid growth of society. With COVID-19 wreaking havoc on markets worldwide, it compelled retailers and service providers to adjust their way of doing business drastically. OFD's emerged as an option either due to consumers' inability to cook, fear of exposure to Covid if they leave the house, monotony of eating home-cooked meals, and safety measures practiced by them. Hence, during this pandemic, the OFDs created a win-win situation for restaurant owners and consumers. However, the current literature does not clearly picture the factors influencing customers' behavioural intentions while using hospitality services in the wake of the COVID-19 pandemic. The primary objective of our study is to understand the factors influencing customer satisfaction during the pandemic. In addition, explore the mediating role of consumer resilience and consumer attitude to strengthen the relationship between product involvement and customer satisfaction in the OFDs context. We have used the social cognitive theory as the theoretical framework for framing our hypotheses. The present study focuses on Indian consumers who have used OFDs during the pandemic. We employed a cross-sectional survey method to test the proposed research model. Two hundred forty valid questionnaires were collected to empirically test the research model using tools like confirmatory factor analysis (CFA) using AMOS-28, direct and indirect relationships were tested using SPSS PROCESS macro. The results indicate that all the proposed hypotheses were supported. Theoretical and Practical implications of the study along with limitations are discussed.     

Examining the relationship between customer bonding,customer participation,and customer satisfaction

This study empirically analyzes the relationship between customer bonding, customer participation, and customer satisfaction. It uses data from 804 VIP customers of South Korea's commercial banks. The hypotheses are tested using the structural equations modeling technique. The results show that social and structural bonding are the main antecedents of customer participation. Additionally, customer participation positively impacts customer participation value and worth. The findings also show that customer participation, customer participation value, and customer participation worth strongly and positively affect customer satisfaction. Furthermore, it finds that customer participation value and worth are essential mediators between customer participation and satisfaction.     

Discovering the variables that influence new home‐buyer service satisfaction

While home builders traditionally think of customer service in terms of upgrades and mortgage options, home buyers are thought to view the quality of service on a much broader basis. Previous research has identified five dimensions of service quality: appearance, reliability, timeliness, knowledge, and empathy. Home‐buyer satisfaction with service quality is then the result of home builders providing services that are perceived as meeting or exceeding buyer expectations. Although much research has been done regarding home‐buyer satisfaction with service quality, there is still a gap between builders' and home buyers' perception of the quality of service. Builders need to identify and understand home‐buyer needs in order to constantly improve service quality. This paper describes an exploratory study that focused on customer satisfaction with service quality. The objective of this study was to assess the correlations between various factors on home‐buyer expectations and their perceptions of service quality. Demographics considered in this study included age, gender and household income, while transaction characteristics included purchase price, number of occupants and house size. Characteristics such as higher income, higher purchase price, and larger house size appeared to value dimensions such as reliability most highly. Characteristics such as lower income, lower purchase price and smaller house size appeared to value dimensions such as empathy and appearance most highly. Gender, age and household size did not have significant associations with expectations or relative importance, but age and household size were associated with actual perceptions of service dimensions. Understanding the influence of these variables on customer satisfaction with service quality can positively impact home builders through improved reputation and increased local referrals.     

Customer satisfaction,corporate image,and service quality in professional services

This study explores the impact of corporate image and service quality on customer satisfaction in the professional service industries. Data were collected on audit firms, sending a questionnaire to financial executives of leading Italian companies. The results show that the most important variable explaining customer satisfaction was the apparent effectiveness of the audit firm. In relation to service quality, managers' satisfaction was primarily driven by their perception of audit firm's work as a useful value-adding service. The length of audit firm–auditee relation, the location of the auditor's office, and the financial executive's personal characteristics were also significant drivers of customer satisfaction.     

Service Orientation: Its Impact on Business Performance in the Medical Service Industry

From the viewpoint of internal marketing, employees who are content in their job may be motivated to satisfy their customers better than ones who are not content. Another relevant premise is that the content employees, because of their work motivation, would eventually help improve the performance of their firm. To verify these relationships, some previous studies looked into the effects of organisational service orientation on employee's satisfaction. But only few of them investigated the mediating effects of variables such as service value and customer orientation for their role in linking service orientation to business performance. This study examines how an organisation's service orientation had an effect on its performance at hospitals. For this purpose, verification of the mediating role of service value perceived by employees as well as the role of customer orientation on the firm's performance was attempted. For this study, a total of 292 usable questionnaires were collected from hospital staffs located in metropolitan cities of Korea. The hypotheses concerning relationships among service orientation, service value, employee satisfaction and customer orientation were verified by covariance structural modelling, using SPSS 10.0 and AMOS 4.0 programs. The result is as follows. First, organisational service orientation had a positive effect on both employee satisfaction and service value perceived by hospital staff. Second, employee satisfaction had a positive impact on service value and customer orientation. Finally, service value as well as employee's customer orientation were found to exert positive influence on the medical firm's performance.     

The influence of salesperson skill,motivation, and training on the practice of customer‐oriented selling

Why is customer‐oriented selling not practiced widely? The purpose of this research was to identify the relationships between factors that may be related to the practice of customer‐oriented selling: Salesperson job satisfaction, organizational commitment, and skills. A survey of 109 retail salespeople provided insights into the relationships between these variables. The findings focused on the importance of the relationships existing between salesperson skills, training, organizational commitment, job satisfaction, and salesperson customer orientation. © 2002 Wiley Periodicals, Inc.     

The importance of customer satisfaction in explaining brand and dealer loyalty

The positive influence of customer satisfaction on brand and dealer loyalty is often taken for granted. In this study we attempted to prove whether this relationship really exists. In order to do so we examined the case of an automobile‐dealer network. Three different types of customer satisfaction were distinguished: (a) satisfaction with the car; (b) satisfaction with the sales service and (c) satisfaction with the after‐sales service. It was expected that all three types of satisfaction would have an influence on brand loyalty as well as on dealer loyalty. More specifically, it was expected that satisfaction with the car would be the major determinant of brand loyalty and that satisfaction with the service (both sales‐ and after‐sales service) would be the major determinant of dealer loyalty. Furthermore, a study of the literature revealed that dealer loyalty might also significantly affect brand loyalty.

In the empirical part of the study, customers (n = 416) of different automobile‐dealers of the same brand were asked to fill in a mailed questionnaire. The three different types of customer satisfaction and the intention to buy the same brand of car again, as well as the intention to buy from the same dealer again were measured. The customers were also asked why they would buy the same brand (again) or from the same dealer. In general, the analyses of the results revealed that: customer satisfaction with the car, as well as dealer loyalty are major determinants of brand loyalty; customer satisfaction with the sales service as well as with the after‐sales service are major determinants of dealer loyalty and dealer loyalty is an intervening variable in the relation between satisfaction and brand loyalty. Furthermore, it was found that the strength of the relationship between different types of satisfaction and loyalty indicators differs markedly between various market segments (private/business use of car and new/used car buyers). Several marketing implications are presented. A distinction may be made between the implications for the manufacturer of the physical product and the automobile dealer rendering the service.     

Are performance appraisals a bureaucratic exercise or can they be used to enhance sales‐force satisfaction and commitment?

In some sales organizations the performance appraisal is treated as a bureaucratic exercise. As such, sales managers may essentially conduct appraisals in an arbitrary and perfunctory manner. This behavior could be based on the belief that conducting performance appraisals requires considerable amounts of time and effort, generates few rewards, and adds considerably to the manager's level of conflict and stress. The purpose of this research is to examine the relationships existing between performance appraisals, salesperson organizational commitment, and job satisfaction. If various characteristics of performance appraisals that build commitment and satisfaction could be identified, then managers may be more capable of using performance appraisals that yield positive results. A survey of 185 retail salespeople and 58 retail sales managers provided the data required to evaluate the relationship between satisfaction, commitment, and various aspects of performance appraisals. The results of the study indicate that managerially mediated factors may be used to enhance salesperson job satisfaction and organizational commitment. © 2001 John Wiley & Sons, Inc.     

The impact of sales encounters on brand loyalty

Gaining and sustaining brand loyalty is a key challenge in increasingly competitive markets. Many marketing researchers as well as practitioners emphasize the critical role of the interpersonal interaction between the customer and the salesperson in influencing customer satisfaction, generating favorable brand attitudes and strengthening the bond between the customers and the brand. So far, empirical research that investigates how sales encounters impact brand loyalty by enhancing customer satisfaction with the sales encounter is lacking. Using data from 154 dyads of customers and salespersons of a large automobile brand, this study shows the perceptions of both the customer and the salesperson regarding the impact of sales encounter performance on satisfaction. Sales encounter satisfaction, in turn, leads to brand loyalty by enhancing brand attitude and salesperson loyalty.     

Customer satisfaction in European food retailing

Customer satisfaction and customer loyalty is becoming an increasingly important factor in modern retailing—a market characterized by slow growth and intense competition. Big non-European chains such as Walmart are already present in some countries and consider buying some of the retail chains in other countries, e.g. in the Scandinavian countries. This development will demand even more focus on customer satisfaction and customer loyalty in order to stay in business and may also demand that existing actors on the market place form new coalitions. Promising new partners may be identified, partly based upon measures identifying how potential partners are perceived by the customers. Based on results from the European Customer Satisfaction study, a comparative analysis of customer satisfaction in Europe is conducted. Some specific Danish results are shown and the relationship between customer loyalty, supermarket type and ownership structure is studied. The relationship between results after taxes and customer loyalty is documented.     

Customer satisfaction and consumer expenditure in selected European countries

The relationship between customer satisfaction and company performance has been extensively researched at both the consumer and firm levels. However, little is known about the impact of customer satisfaction at the economy-wide level, especially in Europe. This study aims to link customer satisfaction to personal consumption expenditure using panel data collected from 1999 to 2011 and covering nine European countries. Our findings suggest a significant relationship between customer satisfaction and consumer expenditure in these countries. In addition, economic structure, culture, political economy and socio-economic factors have been examined to understand the impact of cross-country differences on this relationship. The results reflect the importance of satisfied consumers on the economy as a whole; thus, efforts at boosting customer satisfaction should become a national agenda.     

Effects of Chinese consumers' relationship benefits and satisfaction on attitudes toward foreign fashion brands:The moderating role of country of salesperson

The paper examines the various responses of consumers depending on the country of salesperson (COS) and to look into the effects that consumer–salesperson relationship benefits have on consumer satisfaction and brand attitude. The results suggest that consumers' perceived social benefit and functional benefit positively influenced their satisfaction with salesperson, and a significant positive effect of consumers' satisfaction with salesperson on consumers' brand attitude is found. This positive relationship was moderated by COS. These findings suggest that COS will serve as an important retail mix for global marketers. Other results and management implications are also discussed.     

The impact of perceived similarity to other customers on shopping mall satisfaction

This study highlights the role of social presence with other consumers in influencing consumers' satisfaction evaluations by exploring a question: can non-interactive social presence of other people affect satisfaction with shopping mall experience? Based on Latané's (1981) social impact theory and Byrne's (1971) similarity-attraction paradigm, this study posits that a mere presence of other shoppers can be influential when there is perceived similarity between a customer and others. Further, the similarity perception is hypothesized to influence customer's mall satisfaction through affective and cognitive processes. The findings from a large-scale online survey with consumer panel subjects in the U.S. support all study hypotheses.     

Exploring the relationship of perceived automotive salesperson attributes, customer satisfaction and intentions to automotive service department patronage: The moderating role of customer gender

This study examines the relationship of perceived automotive salesperson attributes and customer satisfaction behavior in the purchase experience leading to the patronage of a service department in an automotive dealership. Logistic regression analyses indicate that gender moderates the relationship of the perceived salesperson attributes and customer satisfaction as well as intentions for service department patronage. The model distinguishes users from non-users of the service department and does this better for females than for males. Finally, the paper concludes with a discussion of the managerial implications and directions for future research.     

An integrative model of consumer satisfaction in the context of e‐services

This research examines how customer satisfaction affects its antecedent and outcome variables such as expectation, performance, disconfirmation, word‐of‐mouth, brand loyalty, attribution and repurchase. This research also takes the important integrative step of understanding the consumer behavioural constructs of consumer satisfaction. Although researchers have focused on the antecedents of consumer satisfaction, our integrative model has extended the outcomes of consumer behaviour on consumer satisfaction. Furthermore, this model strongly suggests a positive view of the inter‐relationships between the antecedent variables and outcome variables of satisfaction. In particular, our model is not consistent with Oliver's attribution models in which satisfaction is a consequence of attribution processing. All hypothesized variables were supported by our empirical study. The findings present a variety of guides to formulating marketing strategies for both practitioners and academics.