Customer Satisfaction with Service Quality

In today‘s competitive environment delivering high quality service is the key for a sustainable competitive advantage. Customer satisfaction does have a positive effect on an organization‘s profitability. Satisfied customers form the foundation of any successful business because customer satisfaction leads to repeat purchases, brand loyalty, and positive word of mouth. There are numerous studies that have looked at the impact of customer satisfaction on repeat purchases, loyalty and retention. Many researchers point out the fact that satisfied customers share their experiences with other people to the order of perhaps five or six people. On the contrary, dissatisfied customers are more likely to tell another ten people of their experience with product or service. Companies and organizations are facing new conditions of doing business because of the rapid development in technology. The 21st century consumer has seen many technological advances especially in the field of telecommunication and information technology. Globalization and deregulation process have enabled growth and an increase in competition.