The Importance of Customer Satisfaction and Service Quality
conrad norgbey, Member
In order to survive in a turbulent market, knowing customer satisfaction, leading to the implications of what customer needs, how customers perceive the quality of service, and how customers receive the quality value for money is a strategic way to achieve higher market share, profitability, competitive advantage and long-term survival.
Consequently, customer satisfaction and service quality are the two most key issues attended by entrepreneurs in service industries. The measurement of those two concepts is a predictor of repeat purchase, referral, and customer loyalty as it has been stated that “Satisfied customers are repeat customers.” Bojanic, 2005.
Practically, all businesses compete to some extent on the basis of service. Attention to service quality helps differentiate one service provider from others. This is because of the fact that competitors usually offer the same products but patently different service. Hence, service companies recognize that perceived excellent service quality is one of the essential dynamics to add value to its products and earn customer loyalty. Commitment to service quality delivery; meet or exceed customers’ expectations and influence customers’ perceptions by improving service performance on a consistent basis is believed to fulfill the goal of service companies. .