Chapter II

REVIEW OF RELATED LITERATURE AND STUDIES

Presented in this chapter are foreign and local literatures and studies gathered from online journal
resources used by the researchers who was seeking of this paper as a guide in order to have a
more accurate studies. This Related Literature helped the researchers have a better understanding
and a wider perspective on the topic gathered. The purpose of this literature review is to provide
the reader with a general overview of customer preference and customer satisfaction. The first
part of this chapter gives a brief descriptive of past and current study of customer preference and
satisfaction. Next, it will also tackle the synthesis of the study. Finally, a brief overview of the
dimensions that used in the study.
This chapter primarily presents the different researchers and other literatures from both foreign
and local researchers, which have significant bearings on the variables included in the research.
It focuses on several aspects that will help in the development of this study. The study is
generally concentrating on the customer preference and customer satisfaction. The literatures of
this study come from books, journals, articles, electronic materials such as PDF and other
existing theses and dissertations, foreign and local that are believed to be useful in the
advancement of awareness concerning the study.
The proponents gathered different related literature and studies, both from foreign and local
sources, in order to understand more about their study. They made the highlights of their findings
in a narrative presentation following this paragraph. The review of the literature for this study
focuses on customer preference and satisfaction . In order to create it will need to find some
helpful resources about the study.
Customer satisfaction seems to be everywhere. Customer satisfaction is a significant element in
service delivery because understanding and satisfying customer’s needs and wants can engender
increased market share from repeat purchases. The orientation to customer satisfaction is not a
recent phenomenon. Number of successful business people over the years have identified the
importance of customer satisfaction and output of it in a business result (Vavra 2002Konečnik
Ruzzier et al., 2019). customer satisfaction and its importance were defined by Zeithami et al.
(1996) as, to achieve continuous success of companies in the long run, the need to emphasize
customer satisfaction is a key consideration(Fida et al., 2020).Customer satisfaction is one of the
factors that influences customer loyalty to organizations (Harazneh et al., 2020). Existing
literature provides empirical support that food quality has a significant influence on customer
satisfaction (Hidayat et al., 2020).
Customer satisfaction is one of the most important marketing priorities for businesses.Customer
satisfaction has a significant impact on repurchase, positive word-of-mouth, and customer
loyalty (Ryu, Han, 2010Artuğer, 2020). Customer satisfaction is defined as “the number of
customers, or percentage of total customers, whose reported experience with a firm, its products,
or its services (ratings) exceeds specified satisfaction goals.”(Haralayya, 2021).Service providers
in every industry strive for customer satisfaction because of its impact on their performance and
profits. Because of its benefits and impacts on service providers, numerous researchers have
studied its conceptualisation and measurement (Wong and Dioko, 2013; Slatten et al., (Ali et al.,
2019).
On the tourism marketing point of view knowing the tourist expectations is important and what
satisfies them and what did not satisfy the tourists should also be found out to take necessary
corrective actions.(Haralayya, 2021). customer satisfaction depends on expectations;
expectations differ be- tween customers or customer segments, and as a consequence value
functions between customer groups should differ, too (Füller & Matzler, 2008). Bi et al. (2020),
Davras and Caber (2019), tested the three-factor theory and found differentiate value functions
in market segments.(Matzler et al., 2021). To meet the expectation of customers during
experience era, it is important to understand their perceptions. To achieve this, this study aimed
to investigate the relationship among resort experiences, self-concept congruence, customer
satisfaction, and brand preference.(Tsai, 2018).Customer satisfaction is seen as a key
differentiator and increasingly has become a key element of business strategy.(Haralayya, 2021).
Customer satisfaction is one of the most important marketing priorities for businesses.Customer
satisfaction has a significant impact on repurchase, positive word-of-mouth, and customer
loyalty (Ryu, Han, 2010Artuğer, 2020).Service providers in every industry strive for customer
satisfaction because of its impact on their performance and profits (Ali and Amin, 2014; Ryu et
al., 2012; Jani and Han, 2011; Nadiri and Hussain, 2005Ali et al., 2017). Customer satisfaction
occurs when the data obtain from business match belief. Customer may not remember experience
the game expectation even though, customer will frequently notice and keep in mind those that
deviated from intimation.(Haralayya, 2021). Customer satisfaction, a term issued in marketing,
it’s a measure how product and service supplied by the company meet or surpass customer
expectation. If customer expectations meet with the perceived value of goods and service then
customer is satisfied but if the perceived value of goods and service is less than the customer
expectations than customer is dissatisfied and if the perceived value exceeded the expected value
of the goods and service than the customer is delighted.(Kannan Paulraj & Dhanabowrna, 2019).
study will also focus on overall customer satisfaction with reference to various factors like
safety, innovation, reliability and many more.(Lachhwani & Kanwar, 2020) Customer
satisfaction remains a central interest for managers. After having entered the literature about
three decades ago, both frequen- cy and volume of publications on this topic are astonishingly
persis- tent over time. A significant amount of papers theorizes and assess- es asymmetric effects
of attribute performance on overall satisfac- tion (Albayrak & Caber, 2015; Bi et al., 2020; Lai &
Hitchcock, 2017; Slevitch & Oh, 2010Matzler et al., 2021). Consumers’ emotions and
evaluations are observed to have a strong correlation with customer satisfaction (Burns and
Neisner, 2006Ali et al., 2017). Satisfaction depends on the quality of the company's products
because higher level of product quality produces higher level of customer satisfaction.
(Wicaksana et al., 2021). Customer satisfaction occurs when the data obtain from business match
belief. Customer may not remember experience the game expectation even though, customer will
frequently notice and keep in mind those that deviated from intimation. customer satisfaction are
parts of the factors to be explored to find how they influence the customer loyalty.(Supriyanto et
al., 2021)
Therefore, new attributes are required for an organization to succeed in a dynamic world where
customers wish, customer preferences, customer behavior and loyalties are equally focused
(Swift 2001(Konečnik Ruzzier et al., 2019). The customer preferences related to the
product/service, the buying processes and after-sales service will become even more impacting.
(Singh & Thirumoorthi, 2019)The huge potential of the market and its early stage of growth
necessitates a study of customer preferences, to ensure that the marketing objectives of the
customer are well placed.(Singh & Thirumoorthi, 2019). Despite their importance in the
relationship between service quality and customer satisfaction, research surrounding consumer
behavior intentions remains insufficient.(Utam et al., 2017). Customer satisfaction is seen to be
one of the main determinants of loyalty. However, the relationship between customer satisfaction
and loyalty does not seem to be linear, many researchers have reported doubts about the
predictability of loyalty solely due to customer satisfaction ratings which ignore image as
predictor of loyalty.(Haralayya, 2021). Customer satisfaction is one of the most important
success drivers. Managers need to understand how satisfaction is formed, which factors to focus
on, and how to in- crease the performance. The Kano model offers useful guidance for managers
to in- crease customer satisfaction.(Matzler et al., 2021). First, service quality was significantly
related to customer satisfaction. Second, service quality was significantly related to customer
loyalty. Third, customer satisfaction was significantly related to customer loyalty. Fourth,
customer satisfaction was found to have a mediating effect between service quality and customer
loyalty.(Satisfaction et al., 2017), Based Brand Equity on Customer Satisfaction, where
Perceived quality has no positive effect on Customer satisfaction.(Vinokurova, 2020). customer
satisfaction are parts of factors that influence customer loyalty to bank services. Both are
necessary to be fulfilled in order to gain customer loyalty, which in turn maintaining
organization survival in the long term.(Supriyanto et al., 2021). The concept of service has been
defined since the 1980s by Churchill and Surprenant (1982) together with Parasuraman et al.
(1985), who popularized the customer satisfaction the- ory through measuring the firm’s actual
service delivery in conformity with the expectations of customers, as defined by the attainment
of perceived quality, and that is meeting the customers’ wants and needs beyond their
aspirations.(Fida et al., 2020).Although customer satisfaction is a crucial part of a business,
satisfaction alone cannot take a business to a top level. Customer satisfaction produces a positive
financial result, especially in regular purchases.(Konečnik Ruzzier et al., 2019).