Customer satisfaction and loyalty is a well known and established concept in several areas like marketing,

consumer research, economic psychology, welfare-economics, and economics. And has long been a topic of
high interest in both academia and practice. The aim of the study was to investigate whether customer
satisfaction is an indicator of customer loyalty. The findings of the study supported the contention that strong
relationship exist between customer satisfaction and loyalty. However, customer satisfaction alone cannot
achieve the objective of creating a loyal customer base. Some researchers also argued, that customer satisfaction
and loyalty are not directly correlated, particularly in competitive business environments because there is a big
difference between satisfaction, which is a passive customer condition, and loyalty, which is an active or
proactive relationship with the organization.

Rahim, A. G., I. U. Ignatius, and Olusola Elizabeth Adeoti. "Is customer satisfaction an indicator of
customer loyalty?." (2012).

The value of treating customer satisfaction (CS) as a marketing objective began to be

questioned in the 1990s. Achieving customer delight (CD) was the suggested alternative.
However, CD is used for a distinct response and for an upper zone of positive nonlinear
response to CS. This research investigates these two perspectives by examining the
linearity of how CS influences behavioral intentions while controlling for CD measured as a
distinct response. Unique data, crossing online retailers with respondents, confirm CD and
CS are distinct responses that both determine behavioral intentions. CD has a positive
quadratic effect; contrary to the zone of delight conceptualization, CS has a negative cubic
effect. This suggests that CD is a service performance metric that needs to be monitored
and managed just as much as CS. Once CS is above average, resources should be used to
increase CD rather than CS.
Finn, Adam. "Customer delight: distinct construct or zone of nonlinear response to customer
satisfaction?." Journal of Service Research 15.1 (2012): 99-110.

For a market driven organization,

customer satisfaction should stand as the core of its
planning strategy
(M. F. Shamsudin, Razak, et al., 2018)

A satisfied customer is more likely to repeat its

buying experience
(Mohd Farid Shamsudin, Ali, Wahid, & Nadzri, 2019)
On the basis of this study results, it has been clarified that customer satisfaction and
customer perceived value are the powerful drives of customer loyalty. To examine
the effects of both independent variables with mediator and customer loyalty, the
empirical study was conducted and it is based on primary data which was collected
from different restaurants in Faisalabad, Pakistan. The results indicated the
existence of strong positive relationship between customer satisfaction, customer
perceived value and organizational performance. From pervious literature, customer
satisfaction and customer perceived value was considered as key motivators for
customers to become loyal to the product and services. Through the mediating role
of customer relationship management there were more chances of building and
sustaining the elements of trust and commitment in the customers. Furthermore, the
demographic factors like age, gender and educational status suggested positive
impact on this study. In conclusion, this study particularly suggests that CRM is tied
closely and play significant role in this relationship.

It is recommended from this study that customer satisfaction, customer perceived

value and CRM is key drivers to build customer loyalty. Therefore, to enhance trust
and commitment levels of customers towards the service; the firm should introduce
CRM quality in restaurants and other service firms should introduce training sections
for their staff members that will improve their levels of customer loyalty which
eventually leads to more customers. Lastly, for further studies, other levels and
independent variables should be explore to predict customer loyalty as loyalty of
customers is a key to increase profit levels and overall firm performance. The current
study has worked on CRM to analyze the mediating effect in this relationship. Other
categories of management can be used to examine their effects on given
relationship. Also, the present study is conducted on restaurant sector of Faisalabad
district (Pakistan). For future study, different sectors can be used for similar kind of
study.

Javed, Farheen, and Sadia Cheema. "Customer satisfaction and customer perceived
value and its impact on customer loyalty: the mediational role of customer
relationship management." The Journal of Internet Banking and Commerce (2017):
1-14.
With the growing influence of online social media, firms increasingly take an active role
in interacting with consumers in social media. For many firms, their first step in online
social media is management responses, where the management responds to
customers' comments about the firm or its products and services. In this article, we
measure the impact of management responses on customer satisfaction using data
retrieved from a major online travel agency in China. Applying a panel data model that
controls for regression toward the mean and heterogeneity in individual preference for
hotels, we find that online management responses are highly effective among low
satisfaction customers but have limited influence on other customers. Moreover, we
show that the public nature of online management responses introduces a new
dynamic among customers. Although online management responses increase future
satisfaction of the complaining customers who receive the responses, they decrease
future satisfaction of complaining customers who observe but do not receive
management responses. The result is consistent with the peer-induced fairness theory.

Gu, Bin, and Qiang Ye. "First step in social media: Measuring the influence of online management
responses on customer satisfaction." Production and Operations Management 23.4 (2014): 570-582.

The present study is an effort to investigate the impact of both convenience

and social interaction on customer satisfaction and the mediating role of
customer experience. A structured questionnaire was used to collect data
(n=840) using systematic sampling from department store shoppers of age
18 years and above in India. Multivariate data analysis techniques like
Exploratory Factor Analysis and Structural Equation Modeling were used
to analyze the data. Results revealed that convenience and social
interaction affect both customer experience and customer satisfaction.
Arguably, this paper is the first to examine the four constructs namely,
social interaction, convenience, customer satisfaction and customer
experience using them together in the same model. Academic and
managerial implications are further discussed.

Srivastava, Mala, and Dimple Kaul. "Social interaction, convenience and customer satisfaction: The
mediating effect of customer experience." Journal of retailing and consumer services 21.6 (2014):
1028-1037.

The findings of the current study have some implications for service providers and managers. First,
customer-related measures such as the customer’s perception of service quality and customer
satisfaction should be the primary objectives for a firm’s business strategy. In other words, firms
should follow a customer-oriented strategy to cope with the challenges in business nowadays since
this can improve customer retention and thus help the firm to reduce the cost of marketing, improve
and stabilize revenues, and adapt in a timely and suitable adequate way to changes in customers’
profiles or preferences. In addition, regular monitoring and evaluation of the customer-related
measures can help managers to deliver the products/services which customers value the most and
thus also attract new customers. Second, this study emphasizes the need for managers to view their
organizations as a complete system which consists of a lot of components and, more importantly,
managers should put their efforts into the task of linking all these components together to serve a
common objective. Managers can use conceptual frameworks such as the Balanced Scorecard or
Service-Profit Chain as a reference point for starting to connect all the activities in the organizations.
This study confirms the link between excellent business processes that result in high service quality
in the banking sector with customer satisfaction and customer loyalty. This finding suggests that if
managers can direct and align all the business processes in their bank towards creating a customer
perception of higher service quality, customers tend to be more satisfied and their loyalty also
improves. However, in order to improve business processes, managers should also consider aligning
other important factors in their organizations, such as human resources or employee satisfaction.

Ngo, Vu Minh, and Huan Huu Nguyen. "The relationship between service quality, customer
satisfaction and customer loyalty: An investigation in Vietnamese retail banking sector." Journal of
competitiveness (2016).

Malik et al. (2013) explored the relationship between service and food quality and customer
satisfaction. They found a positive relationship between restaurant staff, tangibles and food quality
and customer satisfaction. In addition, their results showed a non-significant relationship between
tips and convenience and customer satisfaction. Pecotic et al. (2014) conducted a study to identify
factors (interior design of restaurants) that influence customer satisfaction and found that furniture
comfort, music, table ware conditions, lighting and table layout have a significant influence on
customer satisfaction. Jaini et al. (2015) studied the relationship between customer experience and
total quality of fast-food restaurants and found positive relationships between service quality, food
quality and perceived value and customer experience. According to their results, atmospheric quality
has no significant relationship with customer experience. Abdul and Zainal (2016) investigated the
influence of five dimensions (perceived value, emotional price, monetary price, behavioural price
and reputation) on customer satisfaction. A main finding of their study was the high significant
impact of emotional, monetary and behavioural prices on customer satisfaction. In a study carried
out by Saglik et al. (2014) in refectories in universities, service and hygiene quality were found to
have a significant relationship with customer satisfaction. Tat et al. (2011) examined the influence of
service quality dimensions (tangibility, responsiveness, empathy, reliability, assurance and customer-
perceived service quality) on students’ satisfaction in fast-food restaurants at a university. Their
results led to the acceptance of the hypotheses that all five dimensions have a significant impact on
satisfaction. The aim of Rahman et al.’s (2012) study was to investigate the relationship between
service quality and price and customer satisfaction. Their results revealed that the image of the
restaurant, accuracy in serving the food ordered and speed of service were significantly associated
with customer satisfaction. Canny (2014) investigated the mediating role of dining experience in the
relationship between customer satisfaction and behavioural intentions and concluded that food
quality, service quality and the physical environment have significant relationships with customer
satisfaction. Kang and Wang (2009) rejected the hypothesis that service quality has a significant
impact on customer satisfaction. Saraiva et al. (2011) tried to determine factors that affect customer
satisfaction in university restaurants in Portugal. They showed that the menu, food quality, price,
waiting time, staff, hygiene quality and internal and external environment are critical factors in
stimulating customer satisfaction. In a study of a family restaurant in Indonesia, Surapranata and
Iskandar (2013) investigated the relationship between service quality and customer satisfaction and
found that tangibles, empathy, responsiveness, reliability and assurance are significant factors,
playing an important role in customer satisfaction. Shariff et al. (2015) studied the influence of
service quality and food quality on customer satisfaction. They found that both service quality and
food quality are significant antecedents of customer satisfaction.
Almohaimmeed, Bader MA. "Restaurant quality and customer satisfaction." International Review of
Management and Marketing 7.3 (2017): 42-49.