THE RELATIONSHIP BETWEEN CUSTOMER SATISFACTION AND

CUSTOMER LOYALTY AMONG CUSTOMERS OF

LUXURY PRODUCTS.

Jenifer F. Aton
Master in Business Administration
December 09,2018
 Conceptual Framework of the Study

Customer Satisfaction

Luxury Value
Product quality Quantitative
Uniqueness Research
PROFILE Design
Age
Sex Survey
Civil Status Method
Income Customer Loyalty

Repurchase Intention
First in Mind
Word of Mouth

Feedback
Statement of the Problem
1. What is the profile of the respondents’ in terms of :

• Age;

• Sex:

• Civil Status; and

• Monthly Income ?

2. . What is the level of customer satisfaction in terms of :

• Luxury Value;

• Product quality ;and

• Uniqueness ?
3. To what extend do the respondent perceive their loyalty with regards to ;

• Repurchase intention;

• First in Mind; and

• Word of Mouth?

4. Is there significant relationship between customer satisfaction and customer

loyalty?

5. Is there significant difference on the level satisfaction among customers when

grouped according to profile ?

6. Base on the results of study, what recommendation can be proposed to enhance

the level of customer satisfaction and customer loyalty?
Hypothesis

Based on the theoretical and conceptual frameworks provided in

this study, hypotheses were tested.

1. There is no significant relationship between customer satisfaction

and customer loyalty.

2. There is no significant difference between level satisfaction among

customers when grouped according to Profile.

 Profile Respondent’s
Table 1 Table 3
Frequency and Percentage Distribution of Respondents Frequency and Percentage Distribution of Respondents
According to Age According to Civil Status.
Age Group Frequency Percent Civil Status Frequency Percent

15-19 11 11% Single 33 33%

20-29 57 57%
Married 58 58%
30-39 25 25%
Seperated 9 9%
40-69 7 7%

Total 100 100% Total 100 100%

Table 2 Table 4
Frequency and Percentage Distribution of Respondents Frequency and Percentage Distribution of Respondents
According to Sex According to Monthly Income.

Sex Frequency Percent Amount Frequency Percent

Male 21 21% 10,000 and Below 23 23%

10,001- 20,000 46 46%

Female 79 79% 20,001-30,000 29 29%

30,001- 40,000 2 2%
Total 100 100%
Total 100 100%
 Table 5 Table 7
Level of Customer Satisfaction in terms of Luxury Value Level of Customer Satisfaction in of Uniqueness
Luxury Value Weighted
Mean
Verbal
Interpretation
Rank Uniqueness Weighted
Mean
Verbal
Ra
Interpretatio nk
1.I don’t mind the price who have expensive 1.64 Agree 4 n
luxury watches, mobile phones, homes, cars 1.I purchase luxury brand 1.81 Strongly 5
and clothes. because I simply like the Agree
2. I’d be happier and afford to buy more things like 1.57 Disagree 5 style of it.
luxury product 2. If I see the watch / mobile 1.83 Strongly 4
3.Expensive luxury product is more important 1.68 Agree 3 brand or model, used by Agree
because it give more satisfaction than the too many people, I may
cheap product. change my mind as there
4. I enjoy spending money on things that aren’t 1.82 Strongly Agree 2 would be no uniqueness.
practical. 3. 3.By owning a luxury 1.86 Strongly 3
5.Buying luxury products gives me lot of 1.89 Strongly Agree 1 product, I show others, how Agree
pleasure even it’s expensive. I do not appreciate
identical ordinary things.
Table 6 4. As a person, I like products 1.85 Strongly 2
Level of Customer Satisfaction in terms of Product Quality which are rarer and not Agree
owned by the bulk of other
Product Quality Weighted
Mean
Verbal
Interpretation
Rank
people, that is why I prefer
luxury brands
1.The products ‘superior quality’ is my major 1.85 Srongly Agree 2
5.I like to communicate to 1.91 Strongly 1
reason for buying luxury products.
others about my Agree
uniqueness, especially
2.I buy luxury product because of the 1.80 Srongly Agree 3
while buying luxury
material characteristic.
products.
3.I buy luxury product because of its high and 1.80 Srongly Agree 3.5
long-lasting value, which could result from
superior materials, manufacturing efforts or
sophisticated construction and function
principles.
4. Luxury products have a superior 1.85 Srongly Agree 2.5
functionality.
5. I like new and limited edition of luxury 1.91 Srongly Agree 1
 Table 8 Table 10
Composite Mean Scores of Customer Satisfaction Indicators Level of Customers’ Loyalty in terms of First in Mind
Customer Satisfaction Indicators Weighted Verbal Rank First in Mind Weighted Verbal
Mean Interpretation Mean Interpretation Rank

Luxury Value 1.72 Agree 2

1.When talking about uniqueness, I 1.80 Agree 2

Product Quality 1.85 Agree 1.5 would love to choose luxury product.

Uniqueness 1.85 Agree 1

2..Purchasing experienced I would go 1.84 Agree 1
on luxury product because of the
Composite mean score 1.80 Agree fastest and smooth transaction.

Table 9
3. When purchasing luxury products, it’s 1.73 Agree 3
Level of Customers’ Loyalty in terms of Repurchase intention. included freebies and warranty
Repurchase intention Weighted Verbal Rank reason for continuous patronizing.
Mean Interpretation
1.I would purchase again because of 1.72 Agree 4
the good service.
4. Luxury products ha a general quality 1.72 A Agree 4
2. I will continue to patronize the 1.73 Agree 3 for identification.
products because of the high-quality
Value of luxury product.
3.I buy a luxury brand for satisfying my 1.81 Agree 2
personal needs without any attempt
to make an impression on other
people
4. I would purchase luxury products 1.85 Strongly Agree 1
because of cannot mass-produced.
 Table 11
Level of Customers’ Loyalty in terms of Word of Mouth . Table 12
Composite Mean Scores of Customer Loyalty
Word of Mouth Weighted Verbal
Mean Interpretation Rank Indicators

Customer Loyalty Weighted Verbal

Indicators Mean Interpretation R
a
1. Luxury brand is my first 1.87 Strongly 4 n
choice and I wanted to share Agree k
it with my friends.

2. Luxury product satisfied my 1.94 Strongly 2 Repurchase 1.77 Agree 2

criteria in choosing among Agree intention
brand.

First in Mind 1.77 Agree 2.5

3.Having a good brand and 1.89 Strongly 3
quality luxury product makes Agree
me proud to tell it with other
people.
Word of Mouth 1.91 Strongly Agree 1

4.I recommend luxury product 1.96 Strongly 1

to my friends and family. Agree Composite mean 1.81 Agree
score
Is there significant difference on the level satisfaction among
customers when grouped according to profile ?

Table 16
Table 17
Analysis of Variance (ANOVA on the significant difference among customer
Analysis of Variance (ANOVA on the significant difference among customer
satisfaction when grouped according to profile.
satisfaction when grouped according to profile.
Civil Status
Sex
Source of Sum of Mean Computed P.Value Decision VI
Variation Square Square Value
Source of Sum of Mean Computed P.Value Decision VI Between 4.969 .452 3.272 .255 Accept NS
Variation Square Square Value Groups Ho
Between 4.816 .438 3.272 .001 Reject HO S
Groups
31.271 .355
11.774 .134 Within
Within Groups
Groups Total 36.240
Total 16.590 Level of Significant =0.05
Level of Significant =0.05

V.I=Verbal Interpretation V.I=Verbal Interpretation

 4.9 Product Quality
Table 18

Table 19
Analysis of Variance (ANOVA on the significant difference among customer
Analysis of Variance (ANOVA on the significant difference among customer
satisfaction when grouped according to profile . satisfaction when grouped according to profile

Age
Income
Source of Sum of Mean Computed P.Value Decision VI
Variation Square
Square Value
Source of Sum of Mean Computed P.Value Decision VI
Variation Square Square Value Between Groups 4.336 .361 .607 .831 Accept HO NS
Between Groups 11.544 1.049 1.009 1.946 Accept HO NS
51.824 .567
47.456 .539
Within Groups Within Groups
Total 59.000
Total 56.160
Level of Significant =0.05
Level of Significant =0.05

V.I=Verbal Interpretation V.I=Verbal Interpretation

 Table 22 Table 24

Analysis of Variance (ANOVA on the significant difference among customer Analysis of Variance (ANOVA on the significant difference among customer

satisfaction when grouped according to profile . satisfaction when grouped according to profile

Income Sex

Source of Sum of Mean Computed P.Value Decision VI Source of Sum of Mean Computed P.Value Decision VI
Variation Square Square Value Variation Square Square Value
Between 4.800 .400 .642 .801 Accept NS Between 2.633 .219 1.368 .197 Accept NS
Groups HO Groups HO
54.200 .623 13.957 .160
Within Within
Groups Groups
Total 59.000 Total 16.590
Level of Significant =0.05 Level of Significant =0.05

V.I=Verbal Interpretation
Table 25
4.10 Uniqueness

Table 23 Analysis of Variance (ANOVA on the significant difference among customer

Analysis of Variance (ANOVA on the significant difference among customer satisfaction when grouped according to profile.

satisfaction when grouped according to profile. Civil Status

Age
Source of Sum of Mean Computed P.Value Decision VI
Source of Sum of Mean Computed P.Value Decision VI Variation Square Square Value
Variation Square Square Value Between 3.865 .352 .865 .584 Accept NS
Between 8.670 .723 1.324 .220 Accept NS Groups HO
Groups HO 32.375 .368
47.490 .546 Within
Within Groups
Groups
Total 36.240
Total 59.000
Level of Significant =0.05
Level of Significant =0.05

V.I=Verbal Interpretation
 Table 36

Correlations Matrix of Socio-demographic Profile and Customer Loyalty in

Purchasing Luxury Products.
Repurchase Intention Indicators
Age Sex Civil Status Monthly
Income
Customer
Loyalty
Indicators
Repurchase .020 -.306** .075 -.011
Intention
First In Mind .030 -.329** -.153 .-073
Word of Mouth .058 -.278* -.082 -.031
Interpretation Not Significant for Not Not
Significant Repurchase Significant Significant
Intention,First
in Mind, and
Word of
Mouth.
Decision Accept HO Reject HO for Accept HO Accept HO
Repurchase
Intention,First
in Mind, and
Word of
Mouth.
**Correlation is significant at 0.01 level of significance.
 Table 37

Correlations Matrix of Customer Satisfaction and Customer Loyalty.

Customer Satisfaction
Luxury Value Product Quality Uniqueness
Customer
Loyalty
Indicators
Repurchase .446** .388** .315**
Intention
First In Mind .410** .326** .316**
Word of .415** .451** .431**
Mouth
Interpretation Significant Significant Significant
Decision Reject HO Reject HO Reject HO

**Correlation is significant at 0.01 level of significance.