EXPLORATORY STUDY OF CUSTOMER SATISFACTION AND CUSTOMER RETENTION

OWUSU ANSAH, AUGUSTINE; MENSAH DARFAH, RICHMOND; OSEI AGYEKUM, STEPHEN; ADUSEI, GIFTY; AMPOMAH AGYAKOMAA, YAA

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EXPLORATORY STUDY OF CUSTOMER SATISFACTION AND CUSTOMER RETENTION

OWUSU ANSAH, AUGUSTINE; MENSAH DARFAH, RICHMOND; OSEI AGYEKUM, STEPHEN; ADUSEI, GIFTY; AMPOMAH AGYAKOMAA, YAA

URI: http://localhost:8080/xmlui/handle/123456789/3075

Date: 2012-11-22

Abstract:

This study is aimed at assessing the effect of customer satisfaction and customer retention of Jofel Catering Service, Kumasi. The findings of the study are to bring into light the strong relationship between service quality and customer satisfaction on Customer retention and re-patronage intentions. To direct the collections of data, questionnaires were administered through convenience sampling. The outcome shows that, there was lack of appropriate customer complaints channel; less incentives to motivate staff and that most customers of Jofel Catering services are not price sensitive as compared to quality of service. It is recommended that, Jofel Catering Service should be more customer focus and employee oriented in order to channel its product and services because if employees are well motivated it would automatically improve or reflect positively on their performance on customers. This would encourage re-patronage and customer retention.

Description:

In today’s fast-paced and increasingly competitive market, the bottom-line of a firm’s marketing strategies and tactics is to make profits and contribute to the growth of the company. Customer satisfaction, service quality and customer retention are global issues that affect all organizations, either large or small, profit or non-profit oriented, global or local. Many companies are interested in studying, evaluating and implementing marketing strategies that aim at improving customer retention and maximizing market share, in view of the beneficial effect on the financial performance for the firm. There has been a strong advocacy for the adaptation of customer retention as one of the key performance indicators. Kaplan and Norton, (2001). For instance, a study by Reihheld and Sasser (1990) reported a high correlation between customer retention and profitability in a range of industries. However, the fragmentation of the media choices and the dynamic nature of the market, coupled with an increased number of more demanding and affluent consumers, brought greater challenges to marketing practitioners in retaining their customers. Service quality and customer satisfaction have long been recognized as playing a crucial role for success and survival in today’s competitive market. Not surprisingly, considerable research has been conducted on this concept. Notably, the service quality and customer satisfaction have been linked to customer behavior intentions like purchase and loyalty intention, willingness to spread positive word of mouth, referred and complaint intention by many researchers Kang, Nobuyuki and Herbert, (2004); Soderlund and Ohman, (2005). The most commonly found studies were related to the ‘antecedent, moderating, mediating and behavioral consequences’ and the relationships among these variables – customer satisfaction, service quality, perceived value and behavioral intentions. However, in order to come out with findings of service quality and customer satisfaction, antecedents of customers’ repatronage intentions, a restaurant in hospitality industry has been chosen as a case study.

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