Are the customers satisfied because of the products or service quality?

It has been proven by an author that an organization that consistently satisfies its
customers, enjoy higher retention levels and greater profitability due to increase
customer loyalty (Wicks & Roethlein, 2009, p.83). For this reason every company
works hard daily to win the hearts of customers by satisfying them in order that they
become loyal customers to their brands in order to increase sales and profit. When
customers have good perceptions about a brand, they will always choose to go for the
brand, because consumers form their preferences relative to perceptions and attitudes
about the brands competing in their minds.

To get these loyal customers, companies must create relationships with the customers.
To create relationship with customers, companies need to conduct research to answer
questions on
how the customers make their purchasing decision and whether they are pleased with
what the organization provides to them as offer in terms of product quality, service
quality, price, etc.
Thus customers will always prefer a product or service that gives them maximum
satisfaction.
Customer Perceptions of Service Quality
and Purchase Intentions
The link between customer satisfaction, service
quality, and increased purchases is apparent.
There is also evidence showing that customer satisfaction
and perceptions of service quality affect consumer
intentions to behave in other positive ways. (Positive word
of mouth, increased purchase volume, etc).
Relationships have also been discovered between
service quality and specific behavioural intentions, as
shown in the following diagram.
BOTTOM 3 BOXES
Neutral to Very Dissatisfied
(7%)
Overall Satisfaction
with XYZ
(% of customers)
TOP BOX
Very Satisfied
(64%)
SECOND BOX
Somewhat Satisfied
(29%)
Definitely Will
Repurchase from
XYZ
= 96%
= 52%
= 7%
All
Customers
Top Box Scores, Repurchase Intentions, and
Referral Intentions
44-point drop
Definitely Would
Recommend XYZ
= 91%
= 36%
= 4%
55-point drop
The customers are looking at other elements beyond qualityperceptions on their
purchase decision and only they themselves understand what they are
actuallylooking for. Buyers may not rely on the perceptions of quality alone in
deriving intention to purchase ornot to purchase any motorcycle/scooter product
In market offering, a product is the key element thatbrings value to the customer.
Products are more than justtangible objects but also inclusive of service
features,design, performance quality, brand name and packaging.A products
quality has a significant impact towards theproduct or service performance, thus it
is linked to acustomers value and satisfaction (Kotler and Armstrong,2010). It is
also vital for marketers product positioningtools. Consumers today are demanding
high qualitygoods that save time, energy and often calories. The rank
that consumers in United States placed for product quality
are as follows (1) reliability, (2) durability, (3) easymaintenance, (4) ease of use, (5)
a trusted brand nameand (6) low price

http://www.academia.edu/1099740/The_relationship_between_product_quality_and
_purchase_intention_The_case_of_Malaysias_national_motorcycle_scooter_manufac
turer


BOTTOM 3 BOXES
Neutral to Very Dissatisfied
(7%)
Overall Satisfaction
with XYZ
(% of customers)
TOP BOX
Very Satisfied
(64%)
SECOND BOX
Somewhat Satisfied
(29%)
Definitely Will
Repurchase from
XYZ
= 96%
= 52%
= 7%
All
Customers
Top Box Scores, Repurchase Intentions, and
Referral Intentions
44-point drop
Definitely Would
Recommend XYZ
= 91%
= 36%
= 4%
55-point drop
Goodman says that not even 25% of customers
bring their service issues forward because its
often just too much hassle. Many of them still
believe companies wont care and/or wont fix
the problem to their satisfaction, even if
they did receive their complaint.
The Effects of Service on Behavioral Intentions
and Behavior
Understanding the contribution of marketing to economic and social outcomes is
fundamental to broadening the focus of marketing. The authors develop a
comprehensive model that integrates the impact of service quality and service
satisfaction on both economic and societal outcomes. The model is validated using two
random samples involving intensive health services. The results indicate that service
quality and service satisfaction significantly enhance quality of life and behavioral
intentions, highlighting that customer service has social as well as economic outcomes.
This is an important finding given the movement toward recognizing social and
environmental outcomes, such as emphasized through triple bottom-line reporting.
The findings have important implications for managing service processes, for improving
the quality of life of customers, and for enhancing customers' behavioral intentions
toward the organization.
Figure 18.4
Perceptions of Service,
Behavioral Intentions, and Profits
Customer
Retention
Lower
costs
Price
premium
Word of
mouth
Margins
Profits
Volume of
purchases
Behavioral
Intentions
Sales
Service
The indicators of behavioral intentions are the final set of items included
in the analysis.
Theory suggests that increasing customer retention, or lowering the rate
of customer
defection, is a major key to the ability of a service provider to generate
profits
favorable behavioral intentions are associated with a service providers ability
to get its customers to 1) say positive things about them, 2) recommend
them to other
consumers, 3) remain loyal to them (i.e., repurchase from them), 4) spend
more with the company, and 5) pay price premiums.
it is perceived to have an immediate sense of
credibility.
the effect [of word-of-mouth] is notoriously
hard to measure, but it is frequently
significantly large.