Analyzing association between Customer Satisfaction and Customer Loyalty

Abstract

Customer satisfaction is a measure of how well the customer's perceptions of a product or service have been achieved. Similarly, consumer loyalty is said to arise because customers continue to buy the product of a single business regularly rather than from other rivals. In an age of increasing competitiveness between business firms, those who actually understand the connection between customer service and customer loyalty can have a competitive advantage. The main purpose of the study was to investigate the relationship between customer satisfaction and consumer loyalty and to assess the effect that this connection has on companies. The research was conducted in the city of Pune. Independent variables of the research are Quality of Product, Brand Durability, Service Quality, Price Value Relationship and Product Availability. Such variables are some of the factors that contribute to customer satisfaction, which is the mediating variable of the analysis. Lastly, customer satisfaction is the dependent variable. The study was a quantitative one. The research was performed via the collection of primary data using a self-directed questionnaire technique. Non-probabilistic sampling was used to collect data using the convenience approach due to the large number of customers of a retail electronics company located in Pune. The sample size taken for the analysis was 109. The findings of the study have shown that there is a substantial correlation between customer satisfaction and customer loyalty. The research also showed that the most important factor in deciding customer satisfaction was the relationship between price value and the quality of the product. Moreover, the quality of goods was found to be the least significant factor in assessing customer satisfaction