REVIEW OF LITERATURE

(Bateson and Hoffman 1999). The time period between service production and consumption is considerably shorter than for products. Most of the services are produced on a spot in an interactive process, in which customers and company employees meet. Satisfaction with service quality depends on a large number of dimensions - both tangible and intangible attributes of the product-service offer. The impact of intangible dimensions on consumer satisfaction is of particular interest at this point (Mathew W Augustine, 1999) The quality of interaction between customer and service provider influences customers perception of Service quality. In services, a single employee may affect service efficiency and consequent customer satisfaction with the service.

(Barnard 2002).
Even customers own involvement and participation in the service delivery affect customer satisfaction. Due to the differences in production and provision of products and services, customers evaluate quality and attributes of material goods and services in different ways. This realization has initiated a discussion on the need for special tools for evaluating more diverse and less tangible services. Responding to the growing demands for developing specific and reliable ways to measure customer satisfaction in service industries, a number of studies have been conducted that suggested methodological frameworks for measuring customer satisfaction. (Markovic and Horvat 1999). Studies looked at what measures are used by service companies for measuring customer satisfaction. Studying how financial sector measures customer satisfaction Edgett and Snow (1997) showed that even though it is mostly traditional (financial) measures that are being used by the sector, they do not provide a sufficient basis for innovation in services and multidimensional approaches need to be devised. The two most often used types of measures in service companies are the increase in the number of customers and increase in portfolio dollars. However, the most useful types were direct personal interviews with customers and measure of customer expectations and perceptions. Surprisingly, companies use traditional quantitative measures, but perceive qualitative measures as the most useful. Authors concluded that financial institutions are not satisfied that the traditional accounting-type measures are presenting the full performance picture for new products (Edgett and Snow 1997).

(Hayes 1998), CUSTOMER SATISFACTION SURVEY

Customer satisfaction surveys are a questionnaire based information collection tool to determine the level of satisfaction with various product or service features. Developing a good questionnaire is the key to collecting good quality information. Questions must be short and concise, well formulated, easy to interpret and answer, and facilitate unbiased responses. Survey techniques and questionnaire designs are well known to research community and multiple guidance from different disciplines exist.

Bobbin Rodregous, 1987, CUSTOMER INTERRCEPTS Customer intercepts and exit surveys are two types of in-store information collection methods. They are especially useful in probing customer in their shopping environment. These surveys aim to intercept consumers in retail places and deliver a short structured questionnaire on their satisfaction with the delivered service, preferences, or behaviour. The intercept surveys can also incorporate limited product testing, which provides opportunity to appraise consumer opinion immediately after sampling a product.

Vance Christensen, Customer Satisfaction vs. Customer Loyalty More executives and management teams are interested in customer satisfaction and loyalty metrics than ever before. And, more recently, there has been specific interest in customer loyalty metrics and gaining competitive advantage through loyalty as outlined in any of the several popular books authored by Frederick F. Reichheld. Interestingly, very few executives and managers understand the critical difference, requirements for measurement, or value to the business for actively improving both. Although both metrics have a loose, interdependent relationship, they are two very different metrics with different business implications.

Customer Satisfaction is VERY DIFFERENT from Customer Loyalty. One is a requirement to do business; the other is the basis for sustained profitability and growth.