CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management

Abstract

Customer satisfaction is an important issue for organization, particularly those in services industries like LoveFilm. However, it appears that achieving customer satisfaction is often the end goal, as evidenced by the emphasis on customer satisfaction surveys. This paper proposes that this focus is due to the assumption that satisfied customer's are loyal customer's and thus high levels of satisfaction will lead to increased sales. As a result of this assumption, customer satisfaction is often used as a proxy for loyalty and other outcomes. The researchers empirically demonstrate that satisfaction is not the same as attitudinal loyalty and that there are instances where satisfaction does not result in loyalty. A sample was selected due to the relevance of satisfaction and attitudes in settings of high risk where a high level of decision making is involved. A sample of customers was surveyed on their satisfaction and attitudinal loyalty levels towards LoveFilm service. The results indicate that satisfaction in a LoveFilm are different constructs, and that, while the relationship is positive, high levels of satisfaction do not always yield high levels of loyalty.

TABLE OF CONTENT

ABSTRACT2

Introduction5

Company Overview8

Statement of the problem9

Research question10

Purpose of Study11

Significance of the Study11

CHAPTER 2: LITERATURE REVIEW13

Customer satisfaction14

Models of Customer Satisfaction18

Cycle of Customer Satisfaction20

Importance of Customer Satisfaction for the Firm22

E-service and the external customer24

Annuity Satisfaction26

Customer Satisfaction Vs Customer Dissatisfaction27

Customer Dissatisfaction27

Confirmation / Disconfirmation28

Relationship between Customer Satisfaction and loyalty29

Customer Satisfaction and Customer Loyalty30

Consumer Satisfaction and Relationship Marketing Theory32

Relationship Satisfaction and Salesperson33

Role of Trust in Customer Relationship34

Commitment and Customer Relationship34

Relationship between Service Quality and Customer Satisfaction35

Customer Satisfaction and Value36

Relationship between Marketing and Customer Satisfaction38

Communication and Customer Satisfaction40

Customer Retention and Relationship Marketing42

Similarity Attractive and Customer Satisfaction44

Consumer Satisfaction and Emotion45

Conceptual framework48

Antecedents of customer satisfaction50

Consequences of customer satisfaction53

Customer satisfaction and future intentions56

Considerable debate57

Improving effectiveness of decision making58

CHAPTER 3: RESEARH METHOD59

Introduction59

RESEARCH AIMS AND OBJECTIVES60

Research Philosophy60

Research Approach61

Justification of the rejection of other methods61

Research Strategy63

Qualitative methods63

Stage 164

Stage 265

Data analysis67

CHAPTER 4: RESULT AND DISCUSSION68

Qualitative Results69

Quantitative Results71

Demographics76

Conceptual implications77

CHAPTER 5: CONCLUSION80

Managerial implications83

The importance of perceived value85

Strategies to Increase the Effectiveness of Customer Services86

Face-to-Face Negotiations with customers87

Quickly Respond To Customer's Queries88

Keep a friendly attitude89

Define a Clear and Concise Policy for Customer Service89

Research Limitations90

Further research91

REFERENCES93

BIBLIOGRAPHY101

APPENDIX113

CHAPTER 1: INTRODUCTION

Introduction

To survive in highly competitive markets, organizations need to provide goods and services that yield highly satisfied and loyal customers. When customers are satisfied, they are more likely to return to those who helped them, while dissatisfied customers are more likely to go elsewhere. The retention of very loyal customers is key to organizational survival (Jones and Sasser, 1995). Thus, organizations are challenged to create demand for their products and services through outstanding customer support. To attain sustained excellent external customer support requires internal systems that are aligned to serve the external customer, with each internal subsystem adding value to others within the organization who are dependent on it; as though the other subsystems were its customers (Deming, 1986).

Extensive research has been conducted on the characteristics and quality of organizational effectiveness from the perspective of those who are the organization's external customers (Taylor, ...