The Relationship Between Customer Loyalty and Satisfaction

A meta-analysis of seven different studies, an experimental study, a quasi-experimental study, and two non-experimental studies were used in this research process. The meta-analysis provided level one strength evidence and was of good quality for scientific evidence. The experimental study presented level one strength evidence and was also of good quality for scientific evidence. The quasi-experimental study had level two strength evidence and provided high-quality scientific evidence. Both of the non-experimental studies provided level three strength evidence and high-quality scientific evidence.

This literature review explores the relationship between customer satisfaction and customer loyalty and how do these theories affect businesses in hospitality industry. Hence, there are many researchers that have studied about these two concepts that will help people to better understand about the two theories.

According to Pacelli “High customer satisfaction translates to customer loyalty, and loyalty is one of the biggest drivers of corporate growth” (PACELLI, 2011)

Customer loyalty is much harder to obtain that customer service satisfaction. The most important first step is to satisfy the customer by meeting their expectations. Customers only give a company one chance and if they aren’t satisfied they will not do business with that company again, as well as tell others of their experience. The next step would be to exceed the customer’s expectations. If a business goes above and beyond to assist the customer they begin to build loyalty. The next step is to truly surprise the customer. In order to dominate the marketplace the company must find a way to make them selves stand out with their product or service, accompanied with phenomenal customer service. Once this has been done customer satisfaction and loyalty will be gained. “Acquiring a new customer can cost four or five times more than keeping a current customer” (Bestmark, 2013). So it’s essential to keep the current customer’s happy and coming back for more.

In my opinion our company is relatively strong in 2 of the 4 characteristics of “analytic competitor” as described in the text. Our goal as company is to be superior in customer service and customer loyalty. To that end we have tools developed that assist everyone in the company and we are committed, from the CEO down to line-level team member, to review the same statistics used for continuous improvement. Where we lack strength is having a distinctive capability and due to some system limitations in data warehousing, we still do quite a bit of individual reporting. Prior to working for this company I worked at the Well Established Casino (WEC) organization for 10 years. I learned quite a bit about standard reporting at WEC. Digging into how things worked and what interpretations were used to categorize casino player behavior was very rewarding. While WEC was superior in bucketing and appropriately setting expectations in future customer behavior, their reporting lacked some details preventing marketing operations from quickly responding to outlier influences and climate changes in the industry. I moved onto HTC where most of the reporting was financial in nature. Having opened newer casino properties our corporate structure did not immediately embrace the need for marketing analysis to potentially improve revenue streams that were already robust enough. I came on board with HTC in late 2010 as the Regional Director of Marketing Analysis when they opened casino number two.

Customer Satisfaction and Loyalty has become, throughout years, not only an important marketing tool but also an integrated part of a company structure. Competition has become fierce and competitors in a market are trying constantly to prove that their products and services are better than others. Therefore, being able to satisfy and retain customers will definitely create a competitive edge over competitors but will also reduce cost while creating long term relationship with customers.

Theory of the customer satisfaction has a central situation in marketing as it is a major effect of promotion movement and their and it relation the process of buy and utilization or use of the product or services to manner changes say again buy and finally product loyalty. Beginning of the concept is related to the marketing concept that profit is generated through pleasure of customer wants and needs. Business vocabulary defines customer satisfaction as: The scale of satisfaction provided by the goods or services of a company as considered by the figure of repeat customers. Idea of customer satisfaction is new to unlimited companies, who have been on price and accessibility of goods. So, it is significant to be clear the accurate

· The importance of consumer loyalty measurement could be realised in terms of delivering understanding to the organisations regarding their present market situation and competitive advantages.

The manager’s commitment to customer satisfaction will be measured and analysed. In order to understand the issue properly, the number of customers shopping at the store will be analysed. Corporate involvement with customer satisfaction will be measured. The customer loyalty will be analysed. Primary data with regards to the customer shopping trend will be analysed from the Supermart database. This will form primary data of the research. The company’s website will provide information relating to the corporate involvement with customer

The relationship between customer loyalty and customer satisfaction John T. Bowen University of Nevada, Las Vegas, Nevada, USA Shiang-Lih Chen University of Nevada, Las Vegas, Nevada, USA Keywords Customer loyalty, Customer satisfaction, Database marketing, Hotels Abstract Develops and implements a method for hotels to identify attributes that willincrease customerloyalty. Otherhotels can replicate the methodology used in this study. The study makes the uses of the hotel’s database to draw samples for both focus groups and a mail survey.

Satisfaction of the consumer is one of the main goals for a company to achieve. Customer satisfaction is defined as the feeling that results when an offering meets a consumer’s expectations. Companies around the world are doing many surveys, in order to measure the satisfaction of their consumers because the importance of consumer satisfaction is one of the main factors for a company. According to the question, should a company be happy or concerned if most consumers are satisfied, the answer is concerned. The reason of this answer is that if all consumers would be satisfied then

In today’s competitive markets services and service companies within the same industry are becoming increasingly similar. Differentiation through the delivery channel (i.e. delivery of services against payment) is difficult. A growing number of service companies have embarked on a journey of positioning through the communication channel (i.e. advertising and

Most of the literature focuses on the impact of customer satisfaction on profitability. This particular research acknowledges the possibility of profitability affecting the customer satisfaction. Research attempts to analyse the effect of past profitability on customer satisfaction. Considering this aspect, following hypothesis is proposed:

Our text explains that “customer loyalty is the degree to which a customer will select a particular brand when a purchase from that product category is being considered,” (Levens, 2012, p. 72). This loyalty is present in the relationship that a brand has engaged with the customer, and the resulting attachment the brand has with a consumer (Levens, 2012, p. 72). It is the loyal customer that is most highly sought after by companies, in order to generate the most positive brand image, retain the customer, for the ultimate goal of generating the greatest profit (Levens, 2012, p. 72). The most important goal, other than retaining the loyal customer and persuading others to join them, is evaluating the important customer relationship to determine greatest profitability (Levens, 2012, p. 72).

A meta-analysis approach was employed using electronic databases, current journals, and bibliographic articles were gathered from 1980 to 2011.