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Are the customers satisfied because of the products or service quality?

It has been proven by an author that “an organization that consistently satisfies its 

customers, enjoy higher retention levels and greater profitability due to increase

customer loyalty” (Wicks & Roethlein, 2009, p.83). For this reason every company

works hard daily to win the hearts of customers by satisfying them in order that they

become loyal customers to their brands in order to increase sales and profit. When

customers have good perceptions about a brand, they will always choose to go for the

brand, because consumers form their preferences relative to perceptions and attitudes

about the brands competing in their minds.

To get these loyal customers, companies must create relationships with the customers.

To create relationship with customers, companies need to conduct research to answer

questions on

how the customers make their purchasing decision and whether they are pleased with

what the organization provides to them as offer in terms of product quality, servicequality, price, etc.

Thus customers will always prefer a product or service that gives them maximum

satisfaction.

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Customer Perceptions of Service Quality

and Purchase Intentions

• The link between customer satisfaction, service

quality, and increased purchases is apparent.

 – There is also evidence showing that customer satisfaction

and perceptions of service quality affect consumerintentions to behave in other positive ways. (Positive word

of mouth, increased purchase volume, etc).

• Relationships have also been discovered between

service quality and specific behavioural intentions, asshown in the following diagram.

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BOTTOM 3 BOXES Neutral to Very Dissatisfied

(7%)

Overall Satisfaction

with XYZ 

(% of customers)

TOP BOX Very Satisfied

(64%)

SECOND BOXSomewhat Satisfied

(29%)

Definitely Will

Repurchase fromXYZ

= 96%

= 52%

= 7%

All

Customers

Top Box Scores, Repurchase Intentions, and

Referral Intentions

44-point drop

Definitely Would

Recommend XYZ

= 91%

= 36%

= 4%

55-point drop

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• The customers are looking at other elements beyond qualityperceptions on theirpurchase decision and only they themselves understand what they areactuallylooking for. Buyers may not rely on the perceptions of quality alone inderiving intention to purchase ornot to purchase any motorcycle/scooter product

• In market offering, a product is the key element thatbrings value to the customer.Products are more than justtangible objects but also inclusive of service

features,design, performance quality, brand name and packaging.A product’squality has a significant impact towards theproduct or service performance, thus itis linked to acustomer’s value and satisfaction (Kotler and Armstrong,2010). It isalso vital for marketer’s product positioningtools. Consumers today are demandinghigh qualitygoods that save time, energy and often calories. The rankthat consumers in United States placed for product quality

• are as follows (1) reliability, (2) durability, (3) easymaintenance, (4) ease of use, (5)a trusted brand nameand (6) low price

http://www.academia.edu/1099740/The_relationship_between_product_quality_and _purchase_intention_The_case_of_Malaysias_national_motorcycle_scooter_manufacturer

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BOTTOM 3 BOXES Neutral to Very Dissatisfied

(7%)

Overall Satisfaction

with XYZ 

(% of customers)

TOP BOX Very Satisfied

(64%)

SECOND BOXSomewhat Satisfied

(29%)

Definitely Will

Repurchase fromXYZ

= 96%

= 52%

= 7%

All

Customers

Top Box Scores, Repurchase Intentions, and

Referral Intentions

44-point drop

Definitely Would

Recommend XYZ

= 91%

= 36%

= 4%

55-point drop

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Goodman says that not even 25% of customers

bring their service issues forward because it’s

often just too much hassle. Many of them stillbelieve companies won’t care and/or won’t fix

the problem to their satisfaction, even if

they did receive their complaint.

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The Effects of Service on Behavioral Intentions

and Behavior

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Understanding the contribution of marketing to economic and social outcomes is

fundamental to broadening the focus of marketing. The authors develop a

comprehensive model that integrates the impact of service quality and service

satisfaction on both economic and societal outcomes. The model is validated using two

random samples involving intensive health services. The results indicate that service

quality and service satisfaction significantly enhance quality of life and behavioral

intentions, highlighting that customer service has social as well as economic outcomes.

This is an important finding given the movement toward recognizing social and

environmental outcomes, such as emphasized through triple bottom-line reporting.

The findings have important implications for managing service processes, for improving

the quality of life of customers, and for enhancing customers' behavioral intentions

toward the organization.

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Figure 18.4

Perceptions of Service,

Behavioral Intentions, and Profits

CustomerRetention

Lowercosts

Pricepremium

Word of

mouth

Margins

Profits 

Volume ofpurchases

BehavioralIntentions

Sales

Service

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The indicators of behavioral intentions are the final set of items included

in the analysis.

Theory suggests that increasing customer retention, or lowering the rate

of customer

defection, is a major key to the ability of a service provider to generate

profits

favorable behavioral intentions are associated with a service provider’s ability 

to get its customers to 1) say positive things about them, 2) recommend

them to other

consumers, 3) remain loyal to them (i.e., repurchase from them), 4) spendmore with the company, and 5) pay price premiums.

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 it is perceived to have an immediate sense ofcredibility.

‘the effect [of word-of-mouth] is notoriously

hard to measure, but it is frequently

significantly large’.