Factors Influencing Customer Loyalty Essay

3170 Words 13 Pages
Research shows that one of the biggest challenges nowadays for the organisations operating in the restaurants and service industries is to provide and maintain the satisfaction of their customers and ensure the brand loyalty (Mumel & Snoj, 2007). It is important for a company to understand what is expected of the company from a customer perspective, and the level to which the company is meeting this expectation.
There are two themes that must run parallel to each other when delivering a quality service (Szwarc, 2005). The first is that the organisation staff in customer-centric should understand the relationship between customer satisfaction, loyalty and profits. Besides, staff should also know how to use market research to provide a
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Customer satisfaction has been defined as evaluative judgments of the customers regarding the organisational products and services after customer’s consumption (Faullant et al., 2008). Customer satisfaction reflects the judgements of the customers which are usually based on the pre-purchase expectation and after consumption experience (Snoj and Mumel, 2002). Customer will have different expectations of exactly the same product. Customer satisfaction can be expressed as a function of customer expectation, once customer experience low levels of expectation, will be dissatisfied. In contrast, where customers high expectations are fulfilled he/she will be satisfied (Oliver, 1980). Customer expectations will have in the area of product quality, service quality and environment quality.
Customer satisfaction has been considered one of the most important constructs (McQuitty et al., 2000), and one of the main goals in marketing (Erevelles & Leavitt, 1992). Furthermore, McColl-Kennedy & Schneider (2000) pointed out the customer satisfaction is the most important for a restaurant success. Greywitt & Tewet (2004) stated that there are only four common factors for the customer dining experience, such as the environment: 24%, meal: 30%, service: 26%, and cost: 21%. Mill and Morrison (2003) listed nine attributes of customers’

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