How Does Customer Satisfaction Affect Customer Loyalty?

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The dimensions of service quality was later reduced to 5 dimensions, encompassing: Tangibles (physical facilities, equipment and appearance of personnel), Reliability (ability to perform the services accurately and dependably), Responsiveness (willingness to help customers and provide prompt services), Empathy (caring and individualized attention given to customers, which includes both access to and understanding of the customers and Assurance (providers’ knowledge, courtesy and ability to convey trust and confidence) (Parasuraman et al., 1991).
From the above literature customer satisfaction is a key factor in increasing organization profitability. It is however important to note that company that raises customer’s expectation too high will …show more content…

When a customer is loyal he or she will definitely repeat purchase and even advertise your organization through word of mouth. Customer loyalty is the act of customers buying repeatedly as opposed to choosing those of competitors (Wyse, 2012). The impact of customer satisfaction on customer loyalty was showed in a study conducted by Mitchell (2004) who revealed a positive relationship between customer satisfaction and loyalty. Customer loyalty requires that firms or organizations meet their customers’ needs and demands in order to maintain a long lasting relationship (Campton, 2004). Coldburn (2013) also showed that satisfaction and loyalty goes together. The author indicated in his/her study that as far as customers expectation of a products or services are met, they remain loyal to the organization. An increase in satisfaction then lead to an increase in a company’s profits (Cacioappo, 2000).Eckert emphasizes that loyal customers according to are more likely to purchase or to recommend the purchase of a company’s products and services to someone else. The opposite is also true. Dissatisfied customers are likely to tell others the experiences they had with firms. Firms therefore will need to improve their customer satisfaction in order to grow loyalty and attract new customers (Agarwal,

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