(PBP60143)STRATEGIC MARKETING CUSTOMER SATISFACTION

1.0

INTRODUCTION
Customer service as an antecedent of both satisfaction and loyalty was emphasized

in this research. In the literature, there are many studies which show the relationships of
the other antecedents of satisfaction and loyalty such as perceived quality, expectations,
perceived value, and service quality on satisfaction and loyalty (Parasuraman et al., 1988 ;
Cronin and Taylor, 1992; Fornell et al., 1996; Sivadas and Baker-Prewitt, 2000; Pizam and
ElIis, 1999; Cronin et al., 2000; ONeill and Palmer, 2004; Rod et al., 2009; Karjaluoto et
al., 2012). In this research, just customer service effects on satisfaction and loyalty were
investigated. The main aim of this research was to investigate whether customer services
have effects on customer satisfaction and loyalty.
Customer service effects in creating customer satisfaction and loyalty were
analysed in the shopping centres in Turkish retail sector. Shopping centres were chosen for
implementation area since they provide lots of customer services such as free car park,
clean restrooms, shopping experience in wide and quiet area, credit cards, customer
complaint units, and so on.
Employee satisfaction has been frequently measured by asking customers
perception of employee and customer satisfaction also has been measured by employees
via survey. Though the use of indirect measures in assessing Employee Satisfaction and
Customer Satisfaction is quite common, it still remains unclear whether this practice is
appropriate (Jeon and Choi, 2012). Research indicates that satisfaction primarily consists
of cognitive and affective variables (Fraering and Minor, 2013). Efforts to improve the
measurement of satisfaction led to the discovery of affective variables.
Online shopping, based on the internets growth, is emerging in a fast manner. A
great number of opportunities for the e-vendors have risen in order to create and preserve
interaction with customers. Although not all customers are the same for a company, those
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who spend more money and buy more often are the most important ones. Thus, customer
retention includes a major concern for firms wishing to obtain a competitive advantage
(Ilias et al., 2014).
Islamic banking is one of the most dynamic segments in the banking industry, and
constitutes a segment in which some of the traditional rules of marketing in the banking
industry may not apply. Undoubtedly, the whole notion of Islamic banking implies that
this segment must appeal primarily to Muslim customers who use Islamic banks to fullfill
their religious obligations. In the Islamic tradition, if people want to invest in a business
venture, they should do so as partners, sharing both the risk and the profit. For Muslims,
using modern Islamic banks is an obvious choice as they simultaneously invest their
income and fulfill their religious obligations (Amin et al., 2014).
Researchers generally agree that service quality leads to higher levels of customer
perceived value and customer satisfaction (Chen et al., 2012)

1.1

Background of study
This summary focused on customer satisfaction.

1.2

Statement of problem
Customer satisfaction as a dependent variable and others factors as an
independent variable.

1.3

Objectives of summary
The main objective of this summary is to identify independent variable that
can be a factor that contribute to customer satisfaction.

1.4

Scope of summary
The summary focuses on the journals that use customer satisfaction as it
keyword. There are 25 journals that received from www.emeraldinsight.com

1.5

Limitation of study
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There are some limitations that have caused problems to this summary
where efforts have been done to reduce it. The following are some of the
limitations.
i)

Time constraint
The researcher had limited time for implementing this summary at a

full time scale. It is where the researcher has to find a specific period of time
to conduct a session interviewing. This problem turns up because the
researcher has to schedule a limited time for reference search, preparation of
project paper and office task to be done.
ii)

Cost
As a student, the researcher has a limited financial for doing the

research. This limited financial was allocated for cost of living and cost of
study. The budget was done as affordable by the researcher such as cost of
transportation, printing, photostat and others.
iii)

Lack of expertise
The summary was limited by the researcher who is lack of expertise
and knowledge about the customer satisfaction itself.

1.6

Conclusion
Therefore, this summary has its own objectives in order to find out what is
customer satisfaction. Besides that, to identify independent variable that can
be a factor that contribute to customer satisfaction. While doing this
summary, the researcher has to face some limitation. It will give knowledge
and experience to the researcher in finishing this summary.

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2.0

LITERATURE REVIEW
2.1

Introduction
Literature review is a text written by someone to consider the critical points

of current knowledge including substantive findings as well as theoretical and

methodological contributions to a particular topic. Literature reviews are secondary
sources, and as such, do not report any new or original experimental work. Also, a
literature review can be interpreted as a review of an abstract accomplishment.
According to Jeon and Choi ( 2012) , identifies the employer satisfaction
and customer satisfaction relationship by relating customer satisfaction to employee
performance model. Some of the previous research probing this link was criticized
for the practice of measuring focal variables. The results suggest that the employer
satisfaction and customer satisfaction relationship is unilateral rather than mutual.
In particular, using dyadic data, this study found out employees job satisfaction
leads to customer satisfaction but not vice versa. This finding is noteworthy
because a possible common method bias has been ruled out in the present study
since it has been analysed based on dyadic data. We also examined the variables
which moderate the relationship between employer satisfaction and customer
satisfaction. For a hypothesis testing, two key variables dispositional variables
and organizational variables were identified. Self-efficacy and cooperative
orientation are considered dispositional variables while perceived fairness and
supervisory support are considered organizationally related variables. This study
found only dispositional variables self efficacy and cooperative orientation
marginally moderate the effect of employer satisfaction on customer satisfaction.
This indicate that the higher the self efficacy/cooperative orientation, the greater the
impact of employer satisfaction on customer satisfaction.
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According to Fraering and Minor (2013), empirical support for the beyond
loyalty model means that these findings are only the beginning of additional
progress in understanding satisfaction-loyalty relationships. The results of this
research are only generalizable to the financial services industry, and furthermore
are only generalizable at the retail level. Thus this research is a starting point for
exploring the relationships between satisfaction, the phases of loyalty, and a sense
of virtual community in the institutional market for financial services, as well as
related service industries such as insurance, securities broker/dealers, and mutual
funds. The time has also come for marketing strategists to formulate plans to make
good use of the empirical evidence obtained in this research.
According to Ilias et al., (2014), in an attempt to understand customers
intention to repeat their online purchases, the paper sheds light on the effect of
experience on a rather complete and commonly applied online shopping behaviour
model. Specifically, this study explores the moderating effect of experience on the
relationship of effort expectancy, performance expectancy, self-efficacy, and trust
with satisfaction, as well as on the relationship of satisfaction with intention to
repurchase. The findings indicate that experience moderates the relationship of
performance expectancy with satisfaction as well as the relationship between
customers satisfaction with intention to repurchase while the effect of trust remains
constant and significant regardless of the customers level of experience
Specifically, experience strengthens the effect of performance expectancy on
satisfaction, keeps constant the effect of trust on satisfaction, and downsizes the
effect of satisfaction on intention to repurchase.
Aaker (1992) defines brand equity as a set of assets linked to the brand
name (or symbol) that add value, enabling the product/service to command higher
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margins and generate current and future sales. Therefore, it is hardly surprising that
brand equity enhances financial performance (Peterson and Jeong, 2010) and that
investors disproportionately value strong brands (Madden et al., 2006). These links
between brand equity and favorable financial outcomes can be used to justify
advertising budgets (Peterson and Jeong, 2010) , based on the reasoning that
communicating product availability, features, and benefits all contribute to
improved brand awareness and to cultivation of favorable attitudes towards the
brand, thereby enhancing brand value (Ailawadi et al., 2003).
Satisfaction is perceived as a global consumer response in which consumers
reflect on their pleasure level while CS is defined as the overall level of attainment
of a customers expectations (Akinboade et al., 2012). The conceptualisation of CS
construct follows three theoretical models: Kanos model, disconfirmation-ofexpectations model, and American customer satisfaction model (ACSM). First, the
Kano model classifies product or service attributes based on how they are perceived
by customers and their effect on CS. Accordingly, recent research suggests that
service or product attributes fall into three categories with a different impact on CS:
basic factors, performance, service quality is conceptualised as the difference
between customers expectations for service

performance prior to the service

encounter and their perceptions of the actual service received (Asubonteng et al.,
1996). Accordingly, it is operationalised as either, the calculated difference between
customer expectations and performance perceptions of a service encounter
(Parasuraman et al., 1988) or as a direct comparison between customers
performanceperceptionsandtheirexpectationsoftheserviceencounter(CroninandTaylo
r, 1992), resulting in two competing models: SERVQUAL and SERVPERF,
respectively. SERVQUAL directly measures both expectations and performance
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perceptions whereas SERVPERF only measures performance perceptions.

SERVPERF assumes that respondents provide their ratings by automatically
comparing performance perceptions with performance expectations. Thus,
SERVPERF posits

that directly measuring

performance

expectations

is

unnecessary. Comprehensive meta-analysis studies ( Carrillat and Jaramillo, 2007;

Chen et al., 2011) concluded that both SERVQUAL and SERVPERF are equally
valid predictors of overall SQ. Nevertheless, since SERVQUAL scale has richer
diagnostic value than SERVPERF, this study adopted the SERVQUAL scale.
Although, CL is difficult to define, there are three distinctive approaches to
measure loyalty: behavioural measurements; attitudinal measurement; and
composite measurements. First, the behavioural measurements approach is based
on consistent and repetitious purchase behaviour. However, repeat purchases are
not always the result of a psychological commitment toward a brand or service. For
example, in monopolistic electricity utility service, repeated purchase of power
does not necessarily mean commitment. Second, attitudinal measurements use
emotional and psychological data that indicate engagement and allegiance. Finally,
composite measurements approach of loyalty, combine the first two approaches and
measure loyalty by customers service preferences, propensity of brand-switching,
frequency of purchase and total amount of purchase. The use of both attitude and
behaviour in a loyalty definition substantially increases the predictive power of
loyalty (Bowen and Chen, 2001). Therefore, this research draws from the
understanding that loyalty is a composite measurement that includes repeat
patronage; self stated retention, price insensitivity, resistance to counter persuasion,
and the likelihood of spreading positive word-of-mouth (Jaishankar et al., 2000),
however, it focuses on attitudinal measurements 273 (Butcher et al., 2001).
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3.0

RESEARCH METHODOLOGY
3.1

Introduction
This chapter defines the methodology that was used in conducting this

summary.

This summary was made by reviewing journals that use customer

satisfaction as its keyword.

4.0

ANALYSIS

4.1

Customer Satisfaction
The contribution of this current study is to relate the employee satisfaction

and customer satisfaction link to comprehensive models employee models and

customer models which were proved in previous research. It is noteworthy to
demonstrate that the relationship between employee satisfaction and customer
satisfaction is unilateral rather than mutual. Our reasoning regarding this unilateral
relationship is as follows: Employee satisfaction and customer satisfaction may
have different antecedent variables. Customer satisfaction may be determined
depending on interaction with employees and emotional bonding or connection
during the interaction, whereas employee satisfaction seems to be less affected by
customer satisfaction. Perhaps employees perceive that customer evaluations are
not relevant to their job satisfaction, which are more likely to be determined by
factors such as salary, work environment, co-workers, supervisors, and benefits.
Simply put, customer satisfaction may not be critical in forming employees job
satisfaction. According to our results, it is possible that previous research which
supported reciprocal effects from customer satisfaction to employee satisfaction
might be caused by methodological limitations measuring the relationship
employee satisfaction and customer satisfaction.
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Research on customer satisfaction has a long tradition in marketing in

general and in service marketing in particular (e.g. Syzmanksi and Henard, 2001;
Westbrook, 1981 ; Zeithaml et al., 1988). Oliver (1997) defines satisfaction as the
consumers fulfillment response, the degree to which the level of fulfillment is
pleasant or unpleasant. Hence, satisfaction can be characterized as a global affect
evaluation or feeling state that is influenced by perceived performance as the
cognitive component of the evaluation (Oliver, 1997). The expectancydisconfirmation paradigm (e.g. Oliver, 1997) suggests that customers compare their
expectations to their experiences with a particular offering, and that expectancy
confirmation leads to satisfaction (Bitner, 1990).
Service quality is conceptualised as the difference between customers
expectations for serviceperformance prior to the service encounter and their
perceptions of the actual service received (Asubonteng et al., 1996). Accordingly, it
is operationalised as either, the calculated difference between customer
expectations and performance perceptions of a service encounter (Parasuraman et
al., 1988) or as a direct comparison between customers performance perceptions
and their expectation sof the service encounter(CroninandTaylor, 1992), resulting in
two competing models: SERVQUAL and SERVPERF, respectively. SERVQUAL
directly measures both expectations and performance perceptions whereas
SERVPERF only measures performance perceptions. SERVPERF assumes that
respondents provide their ratings by automatically comparing performance
perceptions with performance expectations. Thus, SERVPERF posits that directly
measuring performance expectations is unnecessary. Comprehensive meta-analysis
studies ( Carrillat and Jaramillo, 2007; Chen et al., 2011) concluded that both
SERVQUAL and SERVPERF are equally valid predictors of overall SQ.
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Nevertheless, since SERVQUAL scale has richer diagnostic value than

SERVPERF, this study adopted the SERVQUAL scale.
Relationship between customer loyalty (CL),customer service (CS) and
service quality (SQ) Several studies have assessed the relationship between SQ, CS
and CL mainly in the context of private sector. First, some studies have examined
the relationship between SQ and CS stemming from the debate that SQ and CS are
the same concept, on one hand, and that they are different but related concepts on
the other. CS is perceived as a broader concept, whereas SQ is perceived as a
component of CS (Kiran, 2010). Specifically, SQ is an antecedent of CS (Bloemer
et al., 1998; Pollack, 2009; Ganguli and Roy, 2011). Second, some researchers
(Bloemer et al., 1998; Ganguli and Roy, 2011 ; Juga et al., 2010; Pollack, 2009;
Santouridis and Trivellas, 2010) have assessed the relationship between SQ and CL
while Butcher et al. (2001), Bloemer et al. (1998) , Devaraj et al. (2001), Ganguli
and Roy (2011), Juga et al. (2010) and Ismail et al. (2006) examined the
relationship between CS and CL. These studies focused on private sector services.
Only Agus et al. (2007) and Bigne et al. (2003) assessed the relationship between
SQ and CS in public sector. Finally, some studies have shown that CS partially
mediates the relationship between SQ and CL (Caruana, 2002; Ismail et al., 2006 ;
Rahim et al., 2010; Santouridis and Trivellas, 2010). Although there is an enormous
amount of research studies that examine the relationship between SQ, CS and CL in
the context of private sector, there is a surprisingly paucity of literature on the
application of these concepts in public sector.

5.0

CONCLUSION

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In conclusion, there a lot of factors that contributes to customer satisfaction.

We have to look to the industry to measure its customer satisfaction. For example
Muslim customers establish relationships with Islamic banks because they trust that
Islamic banks are Shariah compliant. Therefore, providing secure banking products
that are fully compliant with Islamic principles are necessary. (Amin et al., 2014).
On the other hand, fair service not only has a significant impact on customer
satisfaction, but also plays a role equivalent to service quality in determining
customers trust and perceived value, which in turn lead to customer satisfaction.
Brand equity, In summary, the relationship between advertising expenditures and
their brand equity payoff Customer satisfaction, appears greater for companies with
not just satisfied customers but customers who are more Advertising, satisfied than
are the customers of rival brands. Managers may intuitively have suspected
Competitors that all along, but this supporting data may help them to act on that
intuition.
6.0

REFERENCES
Hoseong Jeon Beomjoon Choi, (2012),"The relationship between employee
satisfaction and customer satisfaction", Journal of Services Marketing, Vol. 26 Iss 5
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Houn-Gee Chen Julie Yu-Chih Liu Tsong Shin Sheu Ming-Hsien Yang,
(2012),"The impact of financial services quality and fairness on customer
satisfaction", Managing Service Quality: An International Journal, Vol. 22 Iss 4 pp.
399 - 421
Ilias O. Pappas Adamantia G. Pateli Michail N. Giannakos Vassilios
Chrissikopoulos , (2014),"Moderating effects of online shopping experience on
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Martin Fraering Michael S. Minor, (2013),"Beyond loyalty: customer satisfaction,

loyalty, and fortitude", Journal of Services Marketing, Vol. 27 Iss 4 pp. 334 344
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