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Effect of service supplier performance on satisfaction and loyalty of store managers in the fast food industry
Author(s) -
Stank Theodore P,
Goldsby Thomas J,
Vickery Shawnee K
Publication year - 1999
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/s0272-6963(98)00052-7
Subject(s) - business , customer satisfaction , loyalty business model , customer retention , marketing , service quality , profitability index , context (archaeology) , service provider , loyalty , customer advocacy , service (business) , customer delight , process management , paleontology , finance , biology
The paper presents research that examines the complex relationship between service quality and profitability in service operations. Specifically, the effects of operational performance and relational performance on customer satisfaction and loyalty in the unique context of industrial services are examined. A model of service performance effects on customer satisfaction and loyalty is introduced and tested in the fast food service industry using customer perceptions of provider performance rather than relying on providers' self‐reported performance indicators. The research revealed that the benefit of establishing customer relationships emerges from the enhanced insight the supplier is able to gain regarding customer needs and wants. Upon learning of these needs and wants, the service provider can focus on operational means of meeting the needs and wants, and doing so in the lowest cost manner.