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Research Journal of Economics & Business Studies - RJEBS - The ...

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Customer Satisfaction<br />

Kotler and Armstrong (2012), report that satisfaction is the post-purchase evaluation <strong>of</strong> products or<br />

services taking into considerations <strong>of</strong> expectation. <strong>Research</strong>ers, academicians and managers are<br />

divided over the antecedents <strong>of</strong> service quality and satisfaction. Whilst some think service quality<br />

leads to satisfaction, others think otherwise (Ting, 2004). <strong>The</strong> studies <strong>of</strong> Lee (2000), Suleman (2011)<br />

and Buttle (1998) suggest service quality leads to satisfaction. As service quality improves, the<br />

probability <strong>of</strong> customer satisfaction increases. According to Suleman (2011), Reliability, Tangible,<br />

Responsiveness and assurance have sufficient and positive effect on customer satisfaction, mean while<br />

empathy was found to have a significant and negative effect.<br />

Importance-Satisfaction Model and zone <strong>of</strong> tolerance<br />

Deming (1986), Hardley and Choi (1992) Yang (2003) contended that customers evaluate quality by<br />

using quality attribute that they recognize as important elements. Service providers therefore should<br />

prioritize the quality attributes that have higher importance levels and lower satisfaction. With respect<br />

to this rationale Yang (2003) developed a model known as Importance-Satisfaction (I-S) model also<br />

known as Importance-Performance (I-P) model which is illustrated in figure 1. In this model the<br />

importance and satisfaction <strong>of</strong> each service quality attribute are noted in various quadrants and the<br />

improvement strategies are then considered on the basis <strong>of</strong> the area in which each attribute is located.<br />

<strong>The</strong> following areas are identified in figure 1.<br />

1. Area I: Excellent area. <strong>The</strong> attributes located in this area are important to the customers and the<br />

performance <strong>of</strong> the service provider with respect to these attributes is satisfactory. Service<br />

providers should aim to maintain the service level <strong>of</strong> these attributes.<br />

2. Area II: To-be- improved area. <strong>The</strong> attributes located in this area are important to the customers<br />

and the performance <strong>of</strong> the service provider with respect to these attributes is not satisfactory.<br />

Service providers need to undertake improvement strategies to improve the performance <strong>of</strong><br />

these attributes.<br />

3. Area III: Surplus area. <strong>The</strong> attributes located in this area are unimportant to the customers and<br />

the performance <strong>of</strong> the service provider with respect to these attributes is satisfactory, i.e.,<br />

erformance <strong>of</strong> the service provider exceeds customer’s expectation. ervice providers need<br />

not take any action with respect to these attributes unless cost pressures require them.<br />

4. Area IV: Careless Area. <strong>The</strong> attributes located in this area are unimportant to the customers and<br />

the performance <strong>of</strong> the service provider with respect to these attributes is not satisfactory.<br />

Although performance is poor, service provider need not pay much attention to these attributes<br />

because customers are not concerned about them.<br />

High<br />

h<br />

Satisfaction<br />

Mean<br />

Area III<br />

Surplus area<br />

Area I<br />

Excellent area<br />

Low<br />

Area IV<br />

Careless area<br />

Area II<br />

To be improved area<br />

Low<br />

Mean<br />

importance<br />

Low<br />

Figure 1- Importance Satisfaction model.<br />

Source: Yang, 2003.<br />

www.theinternationaljournal.org > <strong>RJEBS</strong>: Volume: 02, Number: 08, June-2013 Page 100

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