An holistic customer satisfaction model

Abstract

The thesis proposes an holistic customer satisfaction model that can be used as a metric for marketing performance evaluation. The hypotheses aim to develop an integrated customer satisfaction model that synthesizes customer satisfaction antecedents and consequences. The rationale behind this thesis and its relevant hypotheses is multi-faceted. Chiefly, customer satisfaction is considered as marketing's sine qua non; often cited, in the first pages of most of the best-selling marketing books, as the ultimate purpose of the marketing function and even as the short definition of marketing. As such, if there is one metric by which marketing performance should be evaluated with, it should be against its scope and how well it fulfils its goal. Customer satisfaction measurement is not an exact science by default mainly because it deals with human beings and their behaviour that is not only difficult to surface but also difficult to measure. This challenge translates into a plethora of customer satisfaction definitions, antecedents and consequences leading to reluctance to employ customer satisfaction formally for such a serious matter such as marketing performance evaluation and control. Thus, the thesis is a synthesis of prominent customer satisfaction models in an effort to integrate them into one, since the evaluation activity does take an holistic perspective whereas partial models pose the risk of losing synergies that may form in the whole. A multi-method approach is employed to arrive at the integrated customer satisfaction model to be used as a marketing performance metric, commencing with a rigorous review of available models in the literature, continuing with in depth interviews with company managers to understand the industry utilised for the research and content analysis of customer-completed questionnaires and also documents of voluntary expressed free-flow voice of customer (availa1?le online where customers rate companies). The latter consists of elaborate questionnaires completed by customers regarding the different elements of the model. Structural Equation Modelling is deployed to build and test the holistic model as it is the only technique that can simultaneously deal with antecedents and consequences. The first (literature review) and second (in-depth interviews with managers and content analysis of customers' reviews and opinions regarding their purchase experience) phases of the research revealed a massive 25-construct model for customer satisfaction with thirteen antecedents (expectations, performance, disconfirmation, service quality, value, dissonance, emotions/affect, equity, regret/rejoice, assimilation/contrast, attribution, recovery and justice) and eleven consequences (stated loyalty, switching, price tolerance, repurchase, share of wallet, trust, complimenting, complaining to the firm, complaining to a third party, positive and negative word of mouth). In order to test the model, in phase three, a survey questionnaire was designed and calibrated to collect data for analysis using LISREL. Thorough and strict CFA and SEM revealed that thirteen (eight antecedents: performance, disconfirmation, service quality, value, dissonance, emotions/affect, equity, regret/rejoice, and four consequences: trust, repurchase and positive and negative word of mouth) constructs constituted the holistic customer satisfaction model empirically verified in the present thesis