Introduction
This paper discusses the relationship between service quality and customer satisfaction in business. Service quality is an evaluation or assessment to determine how well a particular service conforms to the expectations of the client. The investigation has been done to establish the link between customer satisfaction and service quality. The research indicates that the two constructs are independent but closely related; therefore, an increase of one factor is likely increases another. Service loyalty emphasizes the need to provide consistent quality services (Caruana, 2002). This paper focuses the on impact of quality services to customer satisfaction, and how acquired satisfaction boosts customer loyalty. It also assesses the impact of effective communication, innovation, and technology on customer satisfaction and loyalty.
Impact of quality services to customer satisfaction
There is a correlation between quality customer services and customer satisfaction in business. According to Caruana (2002), customers expect to get value for their money. Besides, customers expect to be treated with respect and get all the vital information for decision-making purpose (Oliver, 2010). Chakravarty (2003) argues that customers tend to switch to other service providers in the event of poor services in the previous businesses or institutions. Hutchinsona, Laib, and Wang (2009) analyze how quality services affect customer satisfaction in the hospitality industry using quality, value, and satisfaction as the primary variables. Results from the study of Hutchinsona, Laib, and Wang (2009) indicate that golf tourists were more attracted to the hotels where they were assured of quality services, including good food, access to the internet, effective communication, and convenience. Thus, the higher the quality of service in business the more satisfied is the customer, hence customer loyalty.
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Relationship between customer satisfaction and loyalty
Customer satisfaction is also found to be related to customer loyalty. Mosahab (2010) agrees with other researchers that customer loyalty and satisfaction are dependent variables. Oliver (2010) finds that customers were more likely to be attracted to institutions that cared about providing quality goods and services. Haumann, Quaiser, Wieseke& Rese (2014) Satisfied customers tended to be loyal to one particular company despite the increased number of competitors. The loyalty, however, is also determined by factors such as efficiency, effective communication, and the ability of the company to enhance continuous improvement. Customer loyalty leads to retention and attraction of more potential customers (Arokiasamy, 2013). Increased number of customers gives a business an edge over other competitors.
Impact of communication, innovation, and technology on customer satisfaction and loyalty
Effective communication and elaborate technology promote efficiency and effectiveness in business. Communication is an integral part of customer loyalty because effective communication improves business to customer (B2C) relationship and loyalty (Bagherzad, Chavosh, and Hosseinikhah, 2011). According to Jamal and Naser (2002), there exists a correlation between customer satisfaction with communication, excellent customer relations, and quality services. Besides, efficient communication in business eliminates middlemen and middlewomen, thus, enabling customers to interact directly with the industry. The use of technology and innovation in business has an impact on customer satisfaction and loyalty. Spohrer and Maglio (2008) focus on how innovation, particularly the increased technology use leads to customer satisfaction. Jamal and Naser (2002) give an example in the banking sector where customers were also focusing on how the banks were adopting innovations to enhance efficiency. Additionally, Jamal and Naser establish that banks that promoted convenience attracted customers. Concerning this, customers are comfortable with banks that allowed them to make transactions even without visiting the bank physically. As technology continues to be in use, organizations improve not just the quality of communication, but also convenience. Customers can get most of their services through internet and at any time. According to Haumann, Quaiser, Wieseke & Rese (2014), loyalty is also determined by the ability of the company to enhance continuous improvement through invention and innovation.
In conclusion, service quality is an imperative element in the determination of prosperity of a particular business. High-quality services create customer satisfaction, which subsequently generates customer loyalty. Customer loyalty leads to retention and attraction of more potential customers. Besides, companies and organizations ought to devise reliable systems of communicating to customers and potential customers about the available services or products. The rapid growth of social media platforms entails institutions to create official accounts, such as verified Facebook and Twitter handles to share authentic information about the company and its products or services.
References
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