2.

2 The concept of customer satisfaction

Customer satisfaction is one of the most important issues concerning business

organization of all types, which is justified by the customer oriented philosophy and
the principles of continued improvement in modern enterprise. For the reason,
customer satisfaction should be measured and translated into a number of measurable
parameters. Customer satisfaction measurement may be considered as the most
reliable feedback, providing client preferences and experiences in an effective, direct,
meaningful and objective way. Thus, customer satisfaction may be considered as a
base line standard of performance and a possible standard of excellence for any
business organization (Gerson, 2003)

Customer satisfaction is a complex construct. It has been defined in various ways

(Besterfield, 2004; Barsky, 2005 Kanji and Moura, 2002; Fecikova, 2004). Hence,
customer satisfaction with services and with goods may derive from, and may be
influenced by different factors and therefore should be treated as separate and distinct
(Veloutsou et al., 2005). Early concepts of satisfaction research have typically
defined satisfaction as a post choice evaluation judgment concerning a specific
purchase decision (Oliver, 2010; Churchill and Suprenant, 2002; Bearden and Teel,
2003; Oliver and DeSarbo, 2008).

Swan and Comb (2008) view satisfaction as a discrepancy between the observed and
desired. This is consistent of value-percept disparity theory (Westbrook and Reilly,
2003) which was developed in response to the problem that consumers could be
satisfied by aspects for which expectations never existed. The value-percept theory
view satisfaction as an emotional response triggered by a cognitive evaluation
process (Parker and Mathews, 2011). In other words, it is the comparison of the
“object” to one’s value rather than an expectation. Customers want a meeting
between their values (need and want) and the object of their evaluation. More
recently, renewed attention has been focused on the nature of satisfaction
emotion, fulfillment and state (Parker and Mathew 2011).

Customer satisfaction can also be defined as satisfaction based on outcome or a

process. Vavra’s (1997) outcome definition of customer satisfaction characterizes
satisfaction as the end-state resulting from experience of consumption. This end state
 may be a cognitive state of reward, an emotional response to an experience or a
comparison of rewards and costs to the anticipated consequences. Vavra, (1997) also
puts forth a definition of customer satisfaction based as a process and emphasize of
the perceptual processes contributing to customer satisfaction. In this definition,
assessment of satisfaction is made during the service delivery process.

2.1.1 Factors that contribute to customer satisfaction

Applying to the hospitality industry, there have been numerous studies that examine
attributes that travelers may find important regarding customer satisfaction. According
to Choi and Chu (2001) concluded that staff quality, room qualities and value are the
top three hotel factors that determine travelers’ satisfaction. Additionally, Williams et
al (2003) similarly summarize customer satisfaction as when ‘customers are satisfied
when their judgment of the service they have received equals or exceeds what they
expected. Providing services that customers prefer is a starting point for providing
customer satisfaction. A relatively easy way to determine what services customer
prefers is simply to ask them. According to Su (2004), guest comment cards (GCCs) are
most commonly used for determining hotel guest satisfaction. GCCs are usually
distributed in hotel rooms, at the reception desk or in some other visible place.
However, studies reveal that numerous hotel chains use guest satisfaction evaluating
methods based on inadequate practices to make important and complex managerial
decisions (Su, 2004).

In the hospitality industry, the true measure of any company’s success lies in an
organization’s ability to continuously satisfy customers and to gain a competitive
edge by acknowledging and managing customers of different cultural backgrounds
(Kandampully et al, 2001). Therefore, successful hospitality managers are expected
to be able to understand more than the domestic market when managing their
operations and in marketing their products and services (Kandampully, 2001), where
increasingly customer’s culture determines the priorities and meanings he or she attaches
to different services and products. Similarly, the different cultural backgrounds of the
customers will also eventually influence the success or failure of the hospitality
service and product.
Nowadays, the focus is no longer on merely increasing the market share, but also on
satisfying and maintaining an existing customer base, which guarantees a good word of
mouth recommendation and repeat customer in order to secure business in the future.
The background to these factors take into account that the objective of achieving
customer satisfaction within an international culturally diverse setting, that is, the
hospitality industry, cannot be underestimated. Businesses, such as typically hotels,
cannot afford to ignore the customers and their cultural backgrounds, as there is
now simply too much choice. Kandampully et al (2001) expressed this in the form that:
‘increased competition is reflected in the ways that customers critically assess the
quality of service competing firms can provide’.

Patterson and Smith (2001), supports the fact that achieving customer satisfaction in an
international market does not only depend upon delivering an effective service by
offering a customer the right facilities within the hotel and adequate
attention, but also acknowledging that customers from different cultures are likely
to have different levels of service expectations and engage in different relational
behaviors.

Williams et. al (2003) add that factors such as customer needs and wants, risk perceived
and price, which also influence the prior expectations of a customer before purchasing
the product. This component is formed by each customer individually with regard to
what he minimally expects of a service in order to be satisfied.

Carvalho (2007), also analyzed the factors that influenced the satisfaction of the
elderly in Camboriú-SC. He concluded that cleanliness, good service, security and
location were the factors that most affected customer satisfaction. Barbosa (2007), in a
study completed in hotels in São Paulo, concluded that the authenticity in the care of
the guests, based on human values, makes possible the creation of friendly relationships
and positively influences their satisfaction. According to Cook (2000), as a drive to
service excellence extends throughout the organization, the need for companies to
commit themselves to high levels of staff care. As Mr. Marriot, the founder of Marriot
hotel chain has been quoted as saying “how can we in a service industry make
customers happy with un happy staff”? Marriot’s philosophy is that take care of your
employees and they will take care of your customers.
Gonzalez (2005) studies the factors that influence the satisfaction and generate the
loyalty of visitors to Natal. This study concludes that the cordiality of hotel staff,
cleanliness of the establishment, safety, restaurant service and the internet were the
most important attributes in the satisfaction of the guest (Cited from Dominogos,
Fernandes, Campos and Gehlen-Marodin, 2012)

It is generally agreed that customer satisfaction evaluations are developed by

comparing customer’s expectations of a good or a service and the actual performance
of that good or service, including customer judgment of the performance ( Kurtz and
Clow, 1998). Positive service quality perceptions are assumed to lead to increased
satisfaction, “the perception of pleasurable fulfillment” (Oliver, 1999) and value
attributions (Roundtree & Bitner, 2000). Customer satisfaction is typically viewed as
a predictor for such behavior variable as loyalty and purchase intentions (Jones and
Sasser, 1995). Complete customer satisfaction is the key to securing customer loyalty
and generating long term financial performance. Customer satisfaction also appears to
have a stronger and more consistent effect on purchase intentions than does services.
It is widely noticed that high customer satisfaction leads to relationship strength and
deep state of collaboration has been found profitable. Many researchers (Robertson
2001; lovelock, Patterson and walker, 2001) conceptualize customer satisfaction as an
individual’s feeling of pleasure or disappointment resulting from comparing a
product ‘s perceived performance (or outcome) in relation to his or her expectations,
generally, there are two general conceptualizations of satisfactions, namely,
transaction-specific satisfaction and cumulative satisfaction (Jones and Suh, 2000)

Given the vital role of customer satisfaction it is not surprising that a variety of
research has been devoted to investigating the determinants of customer satisfactory.
Applying to the hospitality, there has been numerous studies examine the attributes
that travelers may find important regarding customer satisfaction. (Barskey and
Labagh, 1992) stated that employee attitude, location and rooms are likely to
influence traveler’s satisfaction. A study was conducted by Akan (1995) showed that
the main determinant of hotel guest satisfaction is the behavior of the employee,
cleanliness and timeliness. Therefore (Cho and Chu, 2000) concluded that staff
quality, room qualities and value are the top three hotel factors that determine
traveler’s satisfaction.
Transaction-specific satisfaction is a customer’s evaluation of his or her experience
and reactions to a particular service encounter (Boshoff and Gray, 2004) and
cumulative satisfaction refers to the customer’s overall evaluation of the consumption
experience to date (Johnson, Anderson and Fornell, 1995). The concern of the
consumption experience with the organization should persuade the business
organization. It involves identifying customer needs and wants by giving a product or
service that satisfies the needs and ensures that the customer makes a repeat purchase
(kotler, 1999). The common interpretations reflect the notion that satisfaction is a
feeling which results from a process of evaluating what was received against that
expected the purchase decision itself and or the fulfillment of needs/ wants.

Customer satisfaction based on the services customers receive within the industry is
of prime importance. Organizations can increase the number of brand loyal customers
through high growth rates and increased market share. Although it is expensive to
acquire new customers due to stiff competition between service providers, high costs
incurred through startup operations, advertising and promotion (Tepaci 19 99). It is
vital that managers focus on efforts that increase levels of customer satisfaction.
Emotional satisfaction that is influenced by positive or negative psychological
experience of customers within an organizations environment (Yu and Dean, 2000).

Balunywa (2002) stated that a product or service is very important in influencing

customer satisfaction. The product is measured by performance, reliably and
dependability. This is besides aspects like aesthetic features of the product. The
quality of the service is usually what the customer perceives rather what actually it is.

Firdaus (1998) revealed that another important factor that influences customer
satisfaction is getting feedback from customers. Continuous customer satisfaction
depends on how customers feel, a customer may not tell the organization how he feels
or whether there is need for improvement needed in the product or service, it help in
understanding what a customer wants and whether he is satisfied because the
customer is the best judge of “quality service” which leads to his or her satisfaction.

The customer’s needs and expectations are ever important in meeting customer
satisfaction. The customer needs are the desires or wants to fulfill and the deficiency
he feels in his needs which the product or service will address or what he wants the
product or service to do for him (Albert, 2000)

Customer satisfaction will be influenced by specific products or services features and

by perception of quality (Bitner, 2003). It will also be influenced by customer’s
emotional responses their attributions and their perception of quality.

Product and features. Customer satisfaction with a product or service is influenced

significantly by the customer evaluation of product or service feature. In conducting
satisfaction studies firm determine what the important feature and attributes are for
their service and measure perception as well as overall service perception (Kotler,
1995).

Attributions for service or failure. Attributions are the perceived causes of events and
are influenced perceptions of satisfaction as well. When they have been surprised by
an outcome, consumers tend to look for reasons that can influence their satisfaction
even when they don’t take responsibility for outcome satisfaction may be influenced
by other kinds of attributions.

Customer emotions. Customer emotions can affect their perception of satisfaction

with product and service. These emotions can be stable, pre-existing emotions can be
stable or life satisfaction with the service. Customer satisfaction is influenced by
perception of equity and fairness. They often end to compare their treatment to that of
other customers in the same firm. Motions of fairness are to central to customers’
perception of satisfaction with products and services.

Balunywa (1994) argues that customer’s satisfaction is where a customer will be

satisfied if a product he/she wants to meet in fact exceeds his expectations. He further
revealed that for a business to survive in this competition era there exists a need to
focus on the acquisition and retention of the customers through customers’
satisfaction. According to Le Boeuf, (1998) stressed that every company’s greatest
asset is its customers because without them there is no business. The business needs
to find out what causes dissatisfaction to customers and find the way forward to
reduce or overcome the problem.
Clemmer, (1996) based his view of customer satisfaction on the tradition saying “you
never get a second chance to make the first impression and whatever the organization,
the way you communicate with people the first time is the key to your overall success.
Several overall methods of communication can be used effectively to create a positive
first impression, for example your physical place of business, the phone voice mail,
electronic mail, print materials and how you present you self and company outside the
office (Bitner 2002).

Ghandi (1991), continued to argue that customer satisfaction gives organizations a

competitive edge in the global market. This may help other organizations to borrow a
leaf from these other successful and highly competitive organizations, there by
instituting the concept of total quality management. He went ahead and asserted that
customer satisfaction guidelines and criteria that can be used by an industry in
evaluating their own quality improvement efforts. Balunywa asserted that giving
quality services to customers is the key to retaining them. But you need know how
you can do the right thing, ask customers if they are happy with the product in order
to meet their expectations.