Customer Satisfaction and Loyalty Relationship- myassignmenthelp

Question: Discuss about theCustomer Satisfaction and Customer Loyalty Relationship. Answer: Introduction Competition in the finance sector is getting stiff due to the rapid increase of financial institutions. Many banks are looking for sustainable ways to deal with the high competition for long-term results. Many scholars and researchers are on the verge to study more about the operations in finance sector such as customer satisfaction, employee engagement, customer loyalty, quality of services and efficiency. These studies will give insights to better understand what customers want and thus improve for them to be served better (Arokiasamy, 2013) Banks must embark on quality service delivery to their customers for them to attract and maintain them for long-term business. The competitive edge and change of demands are forcing many banks to adapt to the delivery of excellent services to their customers. This study aims to investigate whether customers in the financial sector are well satisfied which will finally result in customer loyalty. Problem Statement Several studies have been associated with consumer loyalty and satisfaction as previously mentioned. Walsh et al (2008), argues that customer satisfaction on loyalty has more weight as switching costs and quality goes hand in hand with satisfaction. According to Parida Baksi (2011) ensuring the successful provision of services, you must ensure the good and quality relationship with your customers. It will generally result in customer loyalty and satisfaction. Organizations which provide the best services to their clients usually emerge as the most superior. Kheng et al. (2010), together with Gregoire Fisher (2008), claims that superiority performance results to increase in profit margin, market share, good customer relations, good customer loyalty and creation of the good business image. It is with no doubt a fully satisfied customer will always come back and refer to others for the good services. In the contemporary business environment, customer satisfaction is a priority. Marketing concepts developed by different researchers show that a customer who has been served well and satisfied will always come back without hesitation. Customer loyalty and satisfaction are the key long-term goals of any business. New customers are costlier as compared to old customers who just come back; loyal customers are more beneficial to the organization According to Mittal Frennea (2010), consumer loyalty is the end assessment of a specific item or service. It happens if the focused-on execution of the item or service is to earlier needs or desires of the client. The consumer loyalty with what the organization offers is foreordained by the general convictions of the items and administrations of the organization and the apparent execution of the items and services. Arnold Palmatier (2011), suggest that loyalty of a customer is the observable behavior of a customer that shows satisfaction and the morale to continue operating with the organization. A customer who wants to get back to the organization and purchase more or recommend to other people about the company indicates the comfort of the customer with the company. Loyal customers are a regular source of income as they help the organization market their products and services through referrals as well as their reliability. The problem that prompts this study is to investigate the connection between consumer loyalty and consumer satisfaction. It will be wholly compared and contrasted in the financial sectors such as banks. Aims and objectives This study aims to investigate how client loyalty and satisfaction is correlated with each other. Matzler et al. (2008), suggested that organization is able to meet the customers needs by measuring the level of their services. It means that organizations must work hard to ensure customer requirements are met in the most appropriate way. Study objectives are as follows: Investigate the correlation between customer loyalty and satisfaction Find out the advantages of customer satisfaction in an organization Investigate factors that influence client satisfaction and loyalty Determine organizations role in promoting and loyalty and satisfaction of consumers Come up with recommendations to assist financial institutions to improve on service delivery for customer satisfaction Brief methodology Questionnaires will be used to collect data from respondents. The questionnaire will have 4 divisions. Part one will include personal data such as sex, education, and religion. The second division will measure on participants expectation levels of service delivery in terms of quality. It will contain the areas that capture the services provided by the organization. It will have a scale of 1-5 from disagree to agree in all parts. Part three will determine the level of customers satisfaction which will provide the following questions for the respondents to answer: What is your satisfaction level provided by the nature of your account? How can you rate customer service by your bank? Are you satisfied with the loan services by your bank? Are you comfortable with the services offered by your bank? Part four will measure the levels of the respondent towards the companys loyalty. Data analysis methods and Secondary data A survey will be used to test the feasibility of the study. Findings for the prior conducted research will also be used to compare and contrast the results obtained. The respondents will be customers from local banks in Melbourne who have one or more accounts who will be tested on their behaviors, attitudes, expectations, and opinions. Quantitative research approach will be applied in this study. Considerations as those of gender, age, level of education and professionalism will also be put in place. Conclusion Despite many studies that have been carried out by different researchers in the field of service delivery, more studies need to be done so as to make the necessary changes in the finance sector. Technology should be included in future studies for measuring service quality. Future studies must be in line with the current trends in the finance sector to meet the consumer's requirements. References Arnold, T. J., Fang, E. E., Palmatier, R. W. (2011). The effects of customer acquisition and retention orientations on a firms radical and incremental innovation performance.Journal of the Academy of Marketing Science,39(2), 234-251. Arokiasamy, A. R. (2013). The impact of customer satisfaction on customer loyalty and intentions to switch in the banking sector in Malaysia.The journal of commerce,5(1), 14-21. Grgoire, Y., Fisher, R. J. (2008). Customer betrayal and retaliation: when your best customers become your worst enemies.Journal of the Academy of Marketing Science,36(2), 247-261. Kheng, L. L., Mahamad, O., Ramayah, T., Mosahab, R. (2010). The impact of service quality on customer loyalty: A study of banks in Penang, Malaysia.International journal of marketing studies,2(2), 57. Matzler, K., Fller, J., Renzl, B., Herting, S., Spth, S. (2008). Customer satisfaction with Alpine ski areas: the moderating effects of personal, situational, and product factors.Journal of Travel Research,46(4), 403-413. Mittal, V., Frennea, C. (2010). Customer satisfaction: a strategic review and guidelines for managers. Parida, B. B., Baksi, A. K. (2011). Customer retention and profitability: CRM environment.SCMS Journal of Indian Management,8(2), 66. Walsh, G., Evanschitzky, H., Wunderlich, M. (2008). Identification and analysis of moderator variables: investigating the customer satisfaction-loyalty link.European Journal of Marketing,42(9/10), 977-1004.