Related Theories

Customer satisfaction
Introduction
Every company relies on customer satisfaction. Profitability, prestige, revenue, service,

and appearance all rely on customers; as a result, they must always be treated with respect. In

today's economy, achieving a balance between customer loyalty and company profitability is

critical to any company's success. Customer satisfaction is described in a variety of ways by

many writers and scientists. The most common concepts of customer satisfaction will be

introduced in the following paragraph.

Definition of Customer satisfaction

Kotler and Keller gave the most comprehensive definition of customer satisfaction. They

defined it as follows: “person's feeling of pleasure or disappointment which resulted from

comparing a product's perceived performance or outcome against his/her expectations” (Kotler

and Keller 2006, 144.)

According to Rai (Rai 2008, 7.), the formula for customer satisfaction is the following:

customer satisfaction equals customer perception of the service received minus customer

expectation of the customer service. Referring to this method, the conclusion is that if customer’s

perception of the service exceeds customer’s expectation, then a client stays satisfied as well as

the opposite; if customer’s perception is less than customer’s expectations, then a client gets

dissatisfied.

Tse and Wilton identified customer satisfaction as ‘’the consumer’s response to the

evaluation of the perceived discrepancy between prior expectations (or some norm of
performance) and the actual performance of the product as perceived after its consumption’’.

(Tse & Wilton 1988, 204.)

According to Gerson, customer satisfaction is a customer’s perception of the expectations

that have been or have been not met. The buyer obtains the product or service and expects it to

work well. If it does, the customer is satisfied if it is not, the customer is dissatisfied. (Gerson

1993, 5.)

This study is supported by the theory of customer satisfaction because Customer

satisfaction enables buyers to directly express their wishes to sellers. Customer satisfaction is

critical because it aids in the discovery of a company's strengths and weaknesses. Business

owners just need to be aware of their strengths and limitations in order to progress. Not only that,

but customer loyalty also aids in the allocation of resources in the case of a strike or satisfaction.

Furthermore, it encourages staff and consumers to remain calm when working to improve

product and service quality. It not only aids in the discovery of strengths and weaknesses, but it

also aids in the persuasion of strategic strengths and weaknesses. It also aids in gaining a better

understanding of the causes of frustration and areas in need of improvement. Finally, customer

loyalty aids in the implementation of a framework for informing management of issues or

circumstances that necessitate actual promotion. (2011 ICR).

When it comes to company, it is not easy to develop this mindset, but everything must be

set up from top to bottom, and management must be present. The nature of a company is

determined by the scale at which it was formed, whether large or small. Customers are the

foundations of any company, and no business can exist without thinking about profit. As a result,

any business stakeholder considers customer satisfaction by attempting to meet customer needs,

which is one of the key obligations of the business investor. Since the research task is to
determine the value of customer satisfaction, some points have already been discussed in the

preceding section, and others will be discussed here. Actually, consumer loyalty aids in and

profits for business investors, so any such investor believes that profit is not as simple as it

seems. Customers will be happier if the business is profitable and able to please them; they will

purchase more products, and the company will be able to sell more goods, which will help to

boost profits. It also helps in increasing revenue, lowering manufacturing costs, and improving

marketing and advertisement. If consumers are fully pleased with the products and services

offered by the business, they will tell their friends and relatives about it, which will help to

encourage marketing and advertisement of the business. Similarly, it helps to improve the

goodwill.

Service Quality

Introduction

The service industry necessitates close contact between workers and customers. The

result of this relationship is either a high or low level of service quality. The high level of service

quality attracts more customers and allows for the development of a large and loyal customer

base. Customer perception of the service, i.e. customer satisfaction or disappointment,

determines the service's efficiency. According to the findings, acquiring new customers is much

more difficult than retaining current customers. (Tricia Morris, 2016) Companies nowadays

spend a significant amount of money in various management systems to learn how to acquire and

retain new customers. It's worthwhile to invest in these services because a loyal client base is a

sign of high-quality service. “Quality is never an accident; it is always the product of high

purpose, earnest effort, intelligent direction, and skilled execution; it reflects the wise option of

many alternatives,” writes William Foster. William A. Foster (Goldstein, 2009.)

Definition of Service Quality

Service and service quality are described in a variety of ways. Service, according to

Philip Kotler, is "an act or performance that one party may give to another that is basically

intangible and does not result in ownership transfer" (Kotler et el, 2012.

‘'Service quality can be described as the difference between customer expectations for

service performance prior to the service experience and their perceptions of the service

received," according to Asubonteng. (Asubonteng and colleagues, 1996.)

A measure of how well a service meets a customer's needs is called service quality.

Businesses must evaluate the service quality they offer to their customers in order to maximize

service performance, rapidly detect issues, and better determine customer satisfaction.

(2017, BusinessDictionary)

Service quality is usually defined as the customer's judgment of the overall excellence or

superiority of the service (Zeithaml, 1988). Thus, it is the customer's subjective evaluation

formed by comparing expectations and perceived performance (Bolton and Drew, 1991,

Parasuraman et al., 1985, Parasuraman et al., 1988).

Service has quality that if can satisfy the customer's needs and demands, and the provided

service consistent with customer expectations or will be beyond it. The common factors of

service quality are as follows:

1. Process Quality: Refers to processes and production methods quality and provide

services to customers.

2. Product Quality: is evaluated after the provide service. In fact, product is what the

customer gets from organization.

 3. Physical Quality: Refers to goods or services the product support cases. (Grace &

Ocass 2008)

4. Interactive Quality: Refers to interactions between customers and service providers.

5. Organization Quality: Is related to mental image and perception total from

organization. Generally, the organization quality is an intangible dimension. (Evans &Lindsay

2009)

This study is founded on the theory of service quality because in the hospitality industry,

service quality has always been a priority. It has been described as one of the most important

ways to improve organizational efficiency and create a competitive position. On the one hand,

service quality is a concentrated assessment that represents the customer's understanding of

particular dimensions of service, such as reliability, responsiveness, assurance, empathy, and

tangibles; on the other hand, satisfaction is more inclusive: it is determined by perceptions of

service quality, product quality, and price, as well as situational and personal factors.

Service quality affects customer satisfaction by providing performance If we take the

case of a Milk Tea store, customers can find bubble tea of the same high quality everywhere, just

as they do in the Milk Tea shop. It occurs as a result of the high-quality services provided.

Customers today expect a very high standard of quality in the hospitality, travel, and leisure

industries. Competitors' success in these fields will therefore be fueled by strategies that

emphasize service quality to add value, as opposed to product or price differentiation. The book

Service Quality Management in Hospitality, Tourism, and Leisure focuses on methods and

techniques that will improve service distribution and provides a fair and understandable

annotation of theoretical ideas and their practical applications. (2001, Kandampully, Mok, and

Sparks.)
 Employees Motivation

Introduction

Employee motivation is an important aspect of Human Resource Management and plays

a key role in an organization's long-term success. The intrinsic enthusiasm and driving force to

complete a mission can be described as motivation. It can be used to guide employees' attitudes

and actions in the direction of a positive vision or objective. Proper motivation transforms an

employee into a devoted asset and aids in employee retention.

Definition of Employees Motivation

Motivation comes from the Latin word "movere," which means "to transfer." A desire, a

want, a need, or a drive that moves or spurs a person to act in a particular way to achieve a goal

or objective is referred to as motivation.

The factors that stimulate the behavior and actions of the people are as
follows:

 Success and advancement in Life

 Desire for Money
 Desire to be empowered
 Work Satisfaction
 Recognition in the Society etc.

Employee motivation is characterized as an employee's level of engagement, energy, and

innovation in the workplace. Even though employee motivation does not have a direct impact on

an organization's development, it is a pre-requisite because a lack of motivation among

employees can negatively impact their efficiency.

 This study is supported by the theory of employee motivation, which states that a worker's

motivation is crucial in attracting customers to a product; if the worker is happy, it will also

make the customer happy, because they will be able to function more efficiently because they

enjoy what they do.

Motivating your bubble tea employees is a difficult task; it's even more difficult if you're a

small business with little financial benefits to offer. Keeping workers motivated, on the other

hand, is a vital challenge for all types of businesses, whether small, medium, or large. If you

don't, you'll be in a constant state of confusion at work because you won't be able to delegate

tasks. As a result of your workers' lack of specialization, you would have a high turnover rate.

Motivation is also important for retaining hardworking workers who are devoted to you and

your business. Although money can be the most motivating factor, it is not always available. A

startup business would have to come up with other, more cost-effective ways to keep its

employees involved in their work. One method is to pay particular attention to each employee.

It's easy to organize them and delegate their everyday duties to a supervisor. You should,

however, be able to respect your employees as individuals.

Employees will become slower and more reliant on their team mates if they are only seen

within the organization. This will lead to them becoming more and more non-performing assets

of the business. This is undoubtedly a difficult task; people can seem to have many

commonalities as a group, but when you examine them as individuals, you may discover that

adapting to each person's motivational style is something you will have to work hard at.

However, in the long term, the employee satisfaction would be higher, making all of these efforts

worthwhile.
 Set up a career plan for your workers inside your organization to keep them motivated.

Nobody wants to be stuck doing the same thing over and over again for years on end. Make sure

you have a system in place to support and facilitate your employees' professional and personal

development. Remember that you recruited people with the ability to be better; what good would

it do them to be in the same place year after year, doing the same things? They're as ambitious as

you are, so give them space to grow or you'll find yourself watching your prized workers wither

in front of your eyes. Last but not least, take the initiative and lead by example. Maintain a good

attitude at work at all times. Last but not least, take the initiative and lead by example. Maintain a

good attitude at work at all times. Your staff would have no choice but to follow your lead if you

are inspired and enthusiastic every day.