Overview of Customer Satisfaction

The following statements pertain to research and studies that support our thesis. This chapter aims to
present the prevailing theories, ideas, sources, articles, and other relevant materials that furnish
substantial facts and data, thereby reinforcing and substantiating our thesis. Additionally, this chapter
aims to expound upon current research that complements our study, comparing literary works and
utilizing insights from both to emphasize relevant aspects of business quality and its impact on customer
satisfaction.

Related Studies and Researches to Thesis

Customer Satisfaction in relation to Business Strategy

Customer satisfaction is a valuable asset that businesses employ to secure loyalty and attract
customers. Additionally, it is a quality they actively pursue, as satisfying customers entails effectively
meeting their needs and desires in a satisfactory and adequate manner. This concept will be further
elucidated to provide a clearer understanding; ““With marketing, customer satisfaction also comes
along with it which means it ascertains the expectation of the customer on how the goods and services
are being facilitated by the companies. Actionable information on how to make customers further
satisfied is therefore, a crucial outcome” (Oliver 1999.)

According to Richard L. Oliver, the level of customer satisfaction is shaped by particular

attributes of a product or service and the perceived quality associated with them. Therefore, marketing
plays a crucial role in customer satisfaction, as it effectively manages the perception of product quality.
In order to achieve this, marketing strategies must be carefully devised to advertise products or services
in a manner that positively influences customer perceptions.

Due to the vital output of Marketing, being able to navigate through desired and undesired
influence of expectations customers hold about their products and services is of insurmountable
importance as it enables entrepreneurs to be more efficient. And thus methods have been formulated
to be able to quantify these favorable outcomes, an example of such a Customer Satisfaction Analysis
Model (Adapted from Tao 2014)
 To understand the model we have terms which need to be comprehended to have an overview
understanding of how Customer Satisfaction Model from Fangfang Tao is measured, such terms will be
defined as:

(1). Mind Satisfaction (MS): It is the extent of the customer's satisfaction for corporations' idea
providing the product or service

(2). Behavioral Satisfaction (BS): It that the degree of customer's satisfaction for behavioral
mechanisms or the rules of conduct and behavior patterns which provides products or services
to business

(3). Visual Satisfaction (VS): It means the customer requirements for a variety of corporate
image in the visual and the hearing was feeling about satisfaction.

(4). Customer Satisfaction Score (CSAT Score): Measures customer satisfaction with a business,
purchase, or interaction. It’s one of the most straightforward ways to measure customer
satisfaction, and it's obtained by asking a simple question, such as 'How satisfied were you with
your experience?' To answer, there's a corresponding survey scale, which can be 1 – 3, 1 – 5, or
1 – 10.

(5). CSAT formula: A simple method commonly used to measure customer satisfaction is to
calculate customer satisfaction rate. Customer satisfaction is a percentage share of satisfied
customers in all certain number of customers, namely: T = S / C * 100%. T is the customer
satisfaction rate; C means target customers; S is the number of customers expressing
satisfaction in the target customer groups

Customer Loyalty and its Measure to Business quality

All businesses relies on their consumers to buy their products and services