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  • Published: 15 September 2016

An empirical research on customer satisfaction study: a consideration of different levels of performance

  • Yu-Cheng Lee 1 ,
  • Yu-Che Wang 2 ,
  • Shu-Chiung Lu 3 , 4 ,
  • Yi-Fang Hsieh 6 ,
  • Chih-Hung Chien 3 , 5 ,
  • Sang-Bing Tsai 7 , 8 , 9 , 10 , 11 , 12 &
  • Weiwei Dong 13  

SpringerPlus volume  5 , Article number:  1577 ( 2016 ) Cite this article

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Customer satisfaction is the key factor for successful and depends highly on the behaviors of frontline service providers. Customers should be managed as assets, and that customers vary in their needs, preferences, and buying behavior. This study applied the Taiwan Customer Satisfaction Index model to a tourism factory to analyze customer satisfaction and loyalty. We surveyed 242 customers served by one tourism factory organizations in Taiwan. A partial least squares was performed to analyze and test the theoretical model. The results show that perceived quality had the greatest influence on the customer satisfaction for satisfied and dissatisfied customers. In addition, in terms of customer loyalty, the customer satisfaction is more important than image for satisfied and dissatisfied customers. The contribution of this paper is to propose two satisfaction levels of CSI models for analyzing customer satisfaction and loyalty, thereby helping tourism factory managers improve customer satisfaction effectively. Compared with traditional techniques, we believe that our method is more appropriate for making decisions about allocating resources and for assisting managers in establishing appropriate priorities in customer satisfaction management.

Traditional manufacturing factories converted for tourism purposes, have become a popular leisure industry in Taiwan. The tourism factories has experienced significant growth in recent years, and more and more tourism factories emphasized service quality improvement, and customized service that contributes to a tourism factory’s image and competitiveness in Taiwan (Wu and Zheng 2014 ). Therefore, tourism factories has become of greater economic importance in Taiwan. By becoming a tourism factory, companies can establish a connection between consumers and the brand, generate additional income from entrance tickets and on-site sales, and eventually add value to service innovations (Tsai et al. 2012 ). Because of these incentives, the Taiwanese tourism factory industry has become highly competitive. Customer satisfaction is seen as very important in this case.

Numerous empirical studies have indicated that service quality and customer satisfaction lead to the profitability of a firm (Anderson et al. 1994 ; Eklof et al. 1999 ; Ittner and Larcker 1996 ; Fornell 1992 ; Anderson and Sullivan 1993 ; Zeithaml 2000 ). Anderson and Sullivan ( 1993 ) stated that a firm’s future profitability depends on satisfying current customers. Anderson et al. ( 1994 ) found a significant relationship between customer satisfaction and return on assets. High quality leads to high levels of customer retention, increase loyalty, and positive word of mouth, which in turn are strongly related to profitability (Reichheld and Sasser 1990 ). In a tourism factory setting, customer satisfaction is the key factor for successful and depends highly on the behaviors of frontline service providers. Kutner and Cripps ( 1997 ) indicated that customers should be managed as assets, and that customers vary in their needs, preferences, buying behavior, and price sensitivity. A tourism factory remains competitive by increasing its service quality relative to that of competitors. Delivering superior customer value and satisfaction is crucial to firm competitiveness (Kotler and Armstrong 1997 ; Weitz and Jap 1995 ; Deng et al. 2013 ). It is crucial to know what customers value most and helps firms allocating resource utilization for continuously improvement based on their needs and wants. The findings of Customer Satisfaction Index (CSI) studies can serve as predictors of a company’s profitability and market value (Anderson et al. 1994 ; Eklof et al. 1999 ; Chiu et al. 2011 ). Such findings provide useful information regarding customer behavior based on a uniform method of customer satisfaction, and offer a unique opportunity to test hypotheses (Anderson et al. 1997 ).

The basic structure of the CSI model has been developed over a number of years and is based on well-established theories and approaches to consumer behavior, customer satisfaction, and product and service quality in the fields of brands, trade, industry, and business (Fornell 1992 ; Fornell et al. 1996 ). In addition, the CSI model leads to superior reliability and validity for interpreting repurchase behavior according to customer satisfaction changes (Fornell 1992 ). These CSIs are fundamentally similar in measurement model (i.e. causal model), they have some obvious distinctions in model’s structure and variable’s selection. Take full advantages of other nations’ experiences can establish the Taiwan CSI Model which is suited for Taiwan’s characters. Thus, the ACSI and ECSI have been used as a foundation for developing the Taiwan Customer Satisfaction Index (TCSI). The TCSI was developed by Chung Hua University and the Chinese Society for Quality in Taiwan. The TCSI provides Taiwan with a fair and objective index for producing vital information that can help the country, industries, and companies improve competitiveness. Every aspect of the TCSI that influences overall customer satisfaction can be measured through surveys, and every construct has a cause–effect relationship with the other five constructs (Fig.  1 ). The relationships among the different aspects of the TCSI are different from those of the ACSI, but are the same as those of the ECSI (Lee et al. 2005 , 2006 ).

The Taiwan Customer Satisfaction Index model

The traditional CSI model for measuring customer satisfaction and loyalty is restricted and does not consider the performance of firms. Moreover, as theoretical and empirical research has shown, the relationship between attribute-level performance and overall satisfaction is asymmetric. If the asymmetries are not considered, the impact of the different attributes on overall satisfaction is not correctly evaluated (Anderson and Mittal 2000 ; Matzler and Sauerwein 2002 ; Mittal et al. 1998 ; Matzler et al. 2003 , 2004 ). Few studies have investigated CSI models that contain different levels of performance (satisfaction), especially in relation to satisfaction levels of a tourism factory. To evaluate overall satisfaction accurately, the impact of the different levels of performance should be considered (Matzler et al. 2004 ). The purpose of this study is to apply the TCSI model that contains different levels of performance to improve and ensure the understanding of firm operational efficiency by managers in the tourism factory. A partial least squares (PLS) was performed to test the theoretical model due to having been successfully applied to customer satisfaction analysis. The PLS is well suited for predictive applications (Barclay et al. 1995 ) and using path coefficients that regard the reasons for customer satisfaction or dissatisfaction and providing latent variable scores that could be used to report customer satisfaction scores. Our findings provide support for the application of TCSI model to derive tourist satisfaction information.

Literature review

National customer satisfaction index (csi).

The CSI model includes a structural equation with estimated parameters of hidden categories and category relationships. The CSI can clearly define the relationships between different categories and provide predictions. The basic CSI model is a structural equation model with latent variables which are calculated as weighted averages of their measurement variables, and the PLS estimation method calculates the weights and provide maximum predictive power of the ultimate dependent variable (Kristensen et al. 2001 ). Many scholars have identified the characteristics of the CSI (Karatepe et al. 2005 ; Malhotra et al. 1994 ).

Although the core of the models are in most respects standard, they have some obvious distinctions in model’s structure and variable’s selection so that their results cannot be compared with each other and some variations between the SCSB (Swedish), the ACSI (American), the ECSI (European), the NCSB (Norwegian) and other indices. For example, the image factor is not employed in the ACSI model (Johnson et al. 2001 ); the NCSB eliminated customer expectation and replaced with corporate image; the ECSI model does not include the customer complaint as a consequence of satisfaction. Many scholars have identified the characteristics of the CSI (Karatepe et al. 2005 ; Malhotra et al. 1994 ). The ECSI model distinguishes service quality from product quality (Kristensen et al. 2001 ) and the NCSB model applies SERVQUAL instrument to evaluate service quality (Johnson et al. 2001 ). A quality measure of a single customer satisfaction index is typically developed according to a certain type of culture or the culture of a certain country. When developing a system for measuring or evaluating a certain country or district’s customer satisfaction level, a specialized customer satisfaction index should be developed.

As such, the ACSI and ECSI were used as a foundation to develop the TCSI. The TCSI was developed by Chung Hua University and the Chinese Society for Quality. Every aspect of the TCSI that influences overall customer satisfaction can be measured through surveys, and every construct has a cause–effect relationship with the other five constructs. The TCSI assumes that currently: (1) Taiwan corporations have ability of dealing with customer complaints; customer complaints have already changed from a factor that influences customer satisfaction results to a factor that affects quality perception; (2) The expectations, satisfaction and loyalty of customers are affected by the image of the corporation. The concept that customer complaints are not calculated into the TCSI model is that they were removed based on the ECSI model (Lee et al. 2005 , 2006 , 2014a , b ; Guo and Tsai 2015 ; Tsai et al. 2015a , b ; 2016a ).

TCSI model and service quality

Service quality is frequently used by both researchers and practitioners to evaluate customer satisfaction. It is generally accepted that customer satisfaction depends on the quality of the product or service offered (Anderson and Sullivan 1993 ). Numerous researchers have emphasized the importance of service quality perceptions and their relationship with customer satisfaction by applying the NCSI model (e.g., Ryzin et al. 2004 ; Hsu 2008 ; Yazdanpanah et al. 2013 ; Chiu et al. 2011 ; Temizer and Turkyilmaz 2012 ; Mutua et al. 2012 ; Dutta and Singh 2014 ). Ryzin et al. ( 2004 ) applied the ACSI to U.S. local government services and indicated that the perceived quality of public schools, police, road conditions, and subway service were the most salient drivers of satisfaction, but that the significance of each service varied among income, race, and geography. Hsu ( 2008 ) proposed an index for online customer satisfaction based on the ACSI and found that e-service quality was more determinative than other factors (e.g., trust and perceived value) for customer satisfaction. To deliver superior service quality, an online business must first understand how customers perceive and evaluate its service quality. This study developed a basic model for using the TCSI to analyze Taiwan’s tourism factory services. The theoretical model comprised 14 observation variables and the following six constructs: image, customer expectations, perceived quality, perceived value, customer satisfaction, and loyalty.

Research methods

The measurement scale items for this study were primarily designed using the questionnaire from the TCSI model. In designing the questionnaire, a 10-point Likert scale (with anchors ranging from strongly disagree to strongly agree) was used to reduce the statistical problem of extreme skewness (Fornell et al. 1996 ; Qu et al. 2015 ; Tsai 2016 ; Tsai et al. 2016b ; Zhou et al. 2016 ). A total of 14 items, organized into six constructs, were included in the questionnaire. The primary questionnaire was pretested on 30 customers who had visited a tourism factory. Because the TCSI model is preliminary research in the tourism factory, this study convened a focus group to decide final attributes of model. The focus group was composed of one manager of tourism factory, one professor in Hospitality Management, and two customers with experience of tourism factory.

We used the TCSI model (Fig.  1 ) to structure our research. From this structure and the basic theories of the ACSI and ECSI, we established the following hypotheses:

Image has a strong influence on tourist expectations.

Image has a strong influence on tourist satisfaction.

Image has a strong influence on tourist loyalty.

Tourist expectations have a strong influence on perceived quality.

Tourist expectations have a strong influence on perceived values.

Tourist expectations have a strong influence on tourist satisfaction.

Perceived quality has a strong influence on perceived value.

Perceived quality has a strong influence on tourist satisfaction.

Perceived value has a strong influence on tourist satisfaction.

Customer satisfaction has a strong influence on tourist loyalty.

The content of our surveys were separated into two parts; customer satisfaction and personal information. The definitions and processing of above categories are listed below:

Part 1 of the survey assessed customer satisfaction by measuring customer levels of tourism factory image, expectations, quality perceptions, value perceptions, satisfaction, and loyalty toward their experience, and used these constructs to indirectly survey the customer’s overall evaluation of the services provided by the tourism factory.

Part 2 of the survey collected personal information: gender, age, family situation, education, income, profession, and residence.

The six constructs are defined as follows:

Image reflects the levels of overall impression of the tourism factory as measured by two items: (1) word-of-mouth reputation, (2) responsibility toward concerned parties that the tourist had toward the tourism factory before traveling.

Customer expectations refer to the levels of overall expectations as measured by two items: (1) expectations regarding the service of employees, (2) expectations regarding reliability that the tourist had before the experience at the tourism factory.

Perceived quality was measured using three survey measures: (1) the overall evaluation, (2) perceptions of reliability, (3) perceptions of customization that the tourist had after the experience at the tourism factory.

Perceived value was measured using two items: (1) the cost in terms of money and time (2) a comparison with other tourism factories.

Customer satisfaction represents the levels of overall satisfaction was captured by two items: (1) meeting of expectations, (2) closeness to the ideal tourism factory.

Loyalty was measured using three survey measures: (1) the probabilities of visiting the tourism factory again (2) attending another activity held by the tourism factory, (3) recommending the tourism factory to others.

Data collection and analysis

The survey sites selected for this study was the parking lots of one food tourism factory in Taipei, Taiwan. A domestic group package and individual tourists were a major source of respondents who were willing to participate in the survey and completed the questionnaires themselves based on their perceptions of their factory tour experience. Four research assistants were trained to conduct the survey regarding to questionnaire distribution and sampling.

To minimize prospective biases of visiting patterns, the survey was conducted at different times of day and days of week—Tuesday, Thursday, Saturday for the first week; Monday, Wednesday, Friday and Sunday for the next week. The afternoon time period was used first then the morning time period in the following weeks. The data were collected over 1 month period.

Of 300 tourists invited to complete the questionnaire, 242 effective responses were obtained (usable response rate of 80.6 %). The sample of tourists contained more females (55.7 %) than males (44.35 %). More than half of the respondents had a college degree or higher, 28 % were students, and 36.8 % had an annual household income of US $10,000–$20,000. The majority of the respondents (63.7 %) were aged 20–40 years.

Comparison of the TCSI models for satisfied and dissatisfied customers

Researchers have claimed that satisfaction levels differ according to gender, age, socioeconomic status, and residence (Bryant and Cha 1996 ). Moreover, the needs, preferences, buying behavior, and price sensitivity of customers vary (Kutner and Cripps 1997 ). Previous studies have demonstrated that it is crucial to measure the relative impact of each attribute for high and low performance (satisfaction) (Matzler et al. 2003 , 2004 ). To determine the reasons for differences, a satisfaction scale was used to group the sample into satisfied (8–10) and dissatisfied (1–7) customers.

The research model was tested using SmartPLS 3.0 software, which is suited for highly complex predictive models (Wold 1985 ; Barclay et al. 1995 ). In particular, it has been successfully applied to customer satisfaction analysis. The PLS method is a useful tool for obtaining indicator weights and predicting latent variables and includes estimating path coefficients and R 2 values. The path coefficients indicate the strengths of the relationships between the dependent and independent variables, and the R 2 values represent the amount of variance explained by the independent variables. Using Smart PLS, we determined the path coefficients. Figures  2 and 3 show ten path estimates corresponding to the ten research hypothesis of TCSI model for satisfied and dissatisfied customers. Every path coefficient was obtained by bootstrapping the computation of R 2 and performing a t test for each hypothesis. Fornell et al. ( 1996 ) demonstrated that the ability to explain the influential latent variables in a model is an indicator of model performance, in particular the customer satisfaction and customer loyalty variables. From the results shown, the R 2 values for the customer satisfaction were 0.53 vs. 0.50, respectively; and the R 2 value for customer loyalty were 0.64 vs. 0.60, respectively. Thus, the TCSI model explained 53 vs. 50 % of the variance in customer satisfaction; 64 vs. 60 % of that in customer loyalty as well.

Path estimate of the TCSI model for satisfied customers. *p < 0.05; **p < 0.01; ***p < 0.001

Path estimate of the TCSI model for dissatisfied customers. *p < 0.05; **p < 0.01; ***p < 0.001

According to the path coefficients shown in Figs.  2 and 3 , image positively affected customer expectations (β = 0.58 vs. 0.37), the customer satisfaction (β = 0.16 vs. 0.11), and customer loyalty (β = 0.47 vs. 0.16). Therefore, H1–H3 were accepted. Customer expectations were significantly related to perceived quality (β = 0.94 vs. 0.83). However, customer expectations were not significantly related to perceived value shown as dotted line (β = −0.01 vs. −0.20) or the customer satisfaction, shown as dotted line (β = −0.21 vs. −0.32). Thus, H4 was accepted but H5 and H6 were not accepted. Perceived value positively affected the customer satisfaction (β = 0.27 vs. 0.14), supporting H7. Accordingly, the analysis showed that each of the antecedent constructs had a reasonable power to explain the overall customer satisfaction. Furthermore, perceived quality positively affected the customer satisfaction (β = 0.70 vs. 0.62), as did perceived value (β = 0.83 vs. 0.74). These results confirm H8 and H9. The path coefficient between the customer satisfaction and customer loyalty was positive and significant (β = 0.63 vs. 0.53). This study tested the suitability of two TCSI models by analyzing the tourism factories in Taiwan. The results showed that the TCSI models were all close fit for this type of research. This study provides empirical evidence of the causal relationships among perceived quality, image, perceived value, perceived expectations, customer satisfaction, and customer loyalty.

To observe the effects of antecedent constructs of perceived value (e.g., customer expectation and perceived quality), customer expectations were not significantly related to perceived value for either satisfied or dissatisfied customers. Furthermore, satisfied customers were affected more by perceived quality (β = 0.83 vs. 0.74), as shown in Table  1 . Regarding the effect of the antecedents of customer satisfaction (e.g., image, customer expectations, perceived value and perceived quality), the total effects of perceived quality on the customer satisfaction of satisfied and dissatisfied customers were 0.92 and 0.72. The total effects of image on the customer satisfaction of satisfied and dissatisfied customers were 0.45 and 0.19. Thus, the satisfaction level of satisfied customers was affected more by perceived quality. Consequently, regarding customer satisfaction, perceived quality is more important than image for satisfied and dissatisfied customers. Numerous researchers have emphasized the importance of service quality perceptions and their relationship with customer satisfaction by applying the CSI model (e.g., Ryzin et al. 2004 ; Hsu 2008 ; Yazdanpanah et al. 2013 ; Chiu et al. 2011 ; Temizer and Turkyilmaz 2012 ; Mutua et al. 2012 ; Dutta and Singh 2014 ). This is consistent with the results of previous research ( O’Loughlin and Coenders 2002 ; Yazdanpanah et al. 2013 ; Chiu et al. 2011 ; Chin and Liu 2015 ; Chin et al. 2016 ).

With respect to the effect of the antecedents of customer loyalty (e.g., image and customer satisfaction), the total effects of image on customer loyalty for satisfied and dissatisfied customers were 0.57 and 0.21. In other words, the customer loyalty of satisfied customers was affected more by customer satisfaction. Customer satisfaction was significantly related to the customer loyalty of both satisfied and dissatisfied customers, and satisfied customers were affected more by customer satisfaction ( β  = 0.63 vs. 0.14). Consequently, regarding customer loyalty, customer satisfaction is more important than image for both satisfied and dissatisfied customers. Numerous studies have shown that customer satisfaction is a crucial factor for ensuring customer loyalty (Barsky 1992 ; Smith and Bolton 1998 ; Hallowell 1996 ; Grønholdt et al. 2000 ). This study empirically supports the notion that customer satisfaction is positively related to customer loyalty.

The TCSI model has a predictive capability that can help tourism factory managers improve customer satisfaction based on different performance levels. Our model enables managers to determine the specific factors that significantly affect overall customer satisfaction and loyalty within a tourism factory. This study also helps managers to address different customer segments (e.g., satisfied vs. dissatisfied); because the purchase behaviors of customers differ, they must be treated differently. The contribution of this paper is to propose two satisfaction levels of CSI models for analyzing customer satisfaction and loyalty, thereby helping tourism factory managers improve customer satisfaction effectively.

Fornell et al. ( 1996 ) demonstrated that the ability to explain influential latent variables in a model, particularly customer satisfaction and customer loyalty variables, is an indicator of model performance. However, the results of this study indicate that customer expectations were not significantly related to perceived value for either satisfied or dissatisfied customers. Moreover, they were affected more by perceived quality of customer satisfaction. Numerous researchers have found that the construct of customer expectations used in the ACSI model does not significantly affect the level of customer satisfaction (Johnson et al. 1996 , 2001 ; Martensen et al. 2000 ; Anderson and Sullivan 1993 ).

Through the overall effects, this study derived several theoretical findings. First, the factors with the largest influence on customer satisfaction were perceived quality and perceived expectations, despite the results showing that customer expectations were not significantly related to perceived value or customer satisfaction. Hence, customer expectations indirectly affected customer satisfaction through perceived quality. Accordingly, perceived quality had the greatest influence on customer satisfaction. Likewise, our results also show that satisfied customers were affected more by perceived quality than dissatisfied customers. This study determined that perceived quality, whether directly or indirectly, positively influenced customer satisfaction. This result is consistent with those of Cronin and Taylor ( 1992 ), Cronin et al. ( 2000 ), Hsu ( 2008 ), Ladhari ( 2009 ), Terblanche and Boshoff ( 2010 ), Deng et al. ( 2013 ), and Yazdanpanah et al. ( 2013 ).

Second, the factors with the most influence on customer loyalty were image and customer satisfaction. The results of this study demonstrate that the customer loyalty of satisfied customers was affected more by customer satisfaction. Consequently, regarding customer loyalty, customer satisfaction is more important than image for satisfied customers. Lee ( 2015 ) found that higher overall satisfaction increased the possibility that visitors will recommend and reattend tourism factory activities. Moreover, numerous studies have shown that customer satisfaction is a crucial factor for ensuring customer loyalty (Barsky 1992 ; Smith and Bolton 1998 ; Hallowell 1996 ; Su 2004; Deng et al. 2013 ). In initial experiments on ECSI, corporate image was assumed to have direct influences on customer expectation, satisfaction, and loyalty. Subsequent experiments in Denmark proved that image affected only expectation and satisfaction and had no relationship with loyalty (Martensen et al. 2000 ). In early attempts to build the ECSI model, image was defined as a variable involving not only a company’s overall image but products or brand awareness; thus image is readily connected with customer expectation and perception. Therefore, this study contributes to relevant research by providing empirical support for the notion that customer satisfaction is positively related to customer loyalty.

In addition to theoretical implications, this study has several managerial implications. First, the TCSI model has a satisfactory predictive capability that can help tourism factory managers to examine customer satisfaction more closely and to understand explicit influences on customer satisfaction for different customer segments by assessing the accurate causal relationships involved. In contrast to general customer satisfaction surveys, the TCSI model cannot obtain information on post-purchase customer behavior to improve customer satisfaction and achieve competitive advantage.

Second, this study not only indicated that each of the antecedent constructs had reasonable power to explain customer satisfaction and loyalty but also showed that perceived quality exerts the largest influence on the customer satisfaction of Taiwan’s tourism factory industry. Therefore, continually, Taiwan’s tourism factories must endeavor to enhance their customer satisfaction, ideally by improving service quality. Managers of Taiwan’s tourism factories must ensure that service providers deliver consistently high service quality.

Third, this research determined that the factors having the most influence on customer loyalty were image and customer satisfaction. Therefore, managers of Taiwan’s tourism factories should allow customer expectations to be fulfilled through experiences, thereby raising their overall level of satisfaction. Regarding image, which refers to a brand name and its related associations, when tourists regard a tourism factory as having a positive image, they tend to perceive higher value of its products and services. This leads to a higher level of customer satisfaction and increased chances of customers’ reattending tourism factory activities.

Different performance levels exist in how tourists express their opinions about various aspects of service quality and satisfaction with tourism factories. Customer segments can have different preferences depending on their needs and purchase behavior. Our findings indicate that tourists belonging to different customer segments (e.g., satisfied vs. dissatisfied) expressed differences toward service quality and customer satisfaction. Thus, the management of Taiwan’s tourism factories must notice the needs of different market segments to meet their individual expectations. This study proposes two satisfaction levels of CSI models for analyzing customer satisfaction and loyalty, thereby helping tourism factory managers improve customer satisfaction effectively. Compared with traditional techniques, we believe that our method is more appropriate for making decisions about allocating resources and for assisting managers in establishing appropriate priorities in customer satisfaction management.

Limitations and suggestions for future research

This study has some limitations. First, the tourism factory surveyed in this study was a food tourism factory operating in Taipei, Taiwan, and the present findings cannot be generalized to the all tourism factory industries. Second, the sample size was quite small for tourists (N = 242). Future research should collect a greater number of samples and include a more diverse range of tourists. Third, this study was preliminary research on tourism factories, and domestic group package tourists were a major source of the respondents. Future studies should collect data from international tourists as well.

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Authors’ contributions

Writing: S-CL; providing case and idea: Y-CL, Y-CW, Y-FH, C-HC; providing revised advice: S-BT, WD. All authors read and approved the final manuscript.

Acknowledgements

Department of Technology Management, Chung-Hua University, Hsinchu, Taiwan. This work was supported by University of Electronic Science Technology of China, Zhongshan Institute (414YKQ01 and 415YKQ08).

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Department of Technology Management, Chung-Hua University, Hsinchu, 300, Taiwan

Yu-Cheng Lee

Department of Business Administration, Chung-Hua University, Hsinchu, 300, Taiwan

Yu-Che Wang

PhD Program of Technology Management, Chung-Hua University, Hsinchu, 300, Taiwan

Shu-Chiung Lu & Chih-Hung Chien

Department of Food and Beverage Management, Lee-Ming Institute of Technology, New Taipei City, 243, Taiwan

Shu-Chiung Lu

Department of Business Administration, Lee-Ming Institute of Technology, New Taipei City, 243, Taiwan

Chih-Hung Chien

Department of Food and Beverage Management, Taipei College of Maritime Technology, New Taipei City, 251, Taiwan

Yi-Fang Hsieh

Zhongshan Institute, University of Electronic Science and Technology of China, Dongguan, 528402, Guangdong, China

Sang-Bing Tsai

School of Economics and Management, Shanghai Maritime University, Shanghai, 201306, China

Law School, Nankai University, Tianjin, 300071, China

School of Business, Dalian University of Technology, Panjin, 124221, China

College of Business Administration, Dongguan University of Technology, Dongguan, 523808, Guangdong, China

Department of Psychology, Universidad Santo Tomas de Oriente y Medio Día, Granada, Nicaragua

School of Economics and Management, Shanghai Institute of Technology, Shanghai, 201418, China

Weiwei Dong

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Lee, YC., Wang, YC., Lu, SC. et al. An empirical research on customer satisfaction study: a consideration of different levels of performance. SpringerPlus 5 , 1577 (2016). https://doi.org/10.1186/s40064-016-3208-z

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An empirical research on customer satisfaction study: a consideration of different levels of performance

Yu-cheng lee.

1 Department of Technology Management, Chung-Hua University, Hsinchu, 300 Taiwan

Yu-Che Wang

2 Department of Business Administration, Chung-Hua University, Hsinchu, 300 Taiwan

Shu-Chiung Lu

3 PhD Program of Technology Management, Chung-Hua University, Hsinchu, 300 Taiwan

4 Department of Food and Beverage Management, Lee-Ming Institute of Technology, New Taipei City, 243 Taiwan

Yi-Fang Hsieh

6 Department of Food and Beverage Management, Taipei College of Maritime Technology, New Taipei City, 251 Taiwan

Chih-Hung Chien

5 Department of Business Administration, Lee-Ming Institute of Technology, New Taipei City, 243 Taiwan

Sang-Bing Tsai

7 Zhongshan Institute, University of Electronic Science and Technology of China, Dongguan, 528402 Guangdong China

8 School of Economics and Management, Shanghai Maritime University, Shanghai, 201306 China

9 Law School, Nankai University, Tianjin, 300071 China

10 School of Business, Dalian University of Technology, Panjin, 124221 China

11 College of Business Administration, Dongguan University of Technology, Dongguan, 523808 Guangdong China

12 Department of Psychology, Universidad Santo Tomas de Oriente y Medio Día, Granada, Nicaragua

Weiwei Dong

13 School of Economics and Management, Shanghai Institute of Technology, Shanghai, 201418 China

Customer satisfaction is the key factor for successful and depends highly on the behaviors of frontline service providers. Customers should be managed as assets, and that customers vary in their needs, preferences, and buying behavior. This study applied the Taiwan Customer Satisfaction Index model to a tourism factory to analyze customer satisfaction and loyalty. We surveyed 242 customers served by one tourism factory organizations in Taiwan. A partial least squares was performed to analyze and test the theoretical model. The results show that perceived quality had the greatest influence on the customer satisfaction for satisfied and dissatisfied customers. In addition, in terms of customer loyalty, the customer satisfaction is more important than image for satisfied and dissatisfied customers. The contribution of this paper is to propose two satisfaction levels of CSI models for analyzing customer satisfaction and loyalty, thereby helping tourism factory managers improve customer satisfaction effectively. Compared with traditional techniques, we believe that our method is more appropriate for making decisions about allocating resources and for assisting managers in establishing appropriate priorities in customer satisfaction management.

Traditional manufacturing factories converted for tourism purposes, have become a popular leisure industry in Taiwan. The tourism factories has experienced significant growth in recent years, and more and more tourism factories emphasized service quality improvement, and customized service that contributes to a tourism factory’s image and competitiveness in Taiwan (Wu and Zheng 2014 ). Therefore, tourism factories has become of greater economic importance in Taiwan. By becoming a tourism factory, companies can establish a connection between consumers and the brand, generate additional income from entrance tickets and on-site sales, and eventually add value to service innovations (Tsai et al. 2012 ). Because of these incentives, the Taiwanese tourism factory industry has become highly competitive. Customer satisfaction is seen as very important in this case.

Numerous empirical studies have indicated that service quality and customer satisfaction lead to the profitability of a firm (Anderson et al. 1994 ; Eklof et al. 1999 ; Ittner and Larcker 1996 ; Fornell 1992 ; Anderson and Sullivan 1993 ; Zeithaml 2000 ). Anderson and Sullivan ( 1993 ) stated that a firm’s future profitability depends on satisfying current customers. Anderson et al. ( 1994 ) found a significant relationship between customer satisfaction and return on assets. High quality leads to high levels of customer retention, increase loyalty, and positive word of mouth, which in turn are strongly related to profitability (Reichheld and Sasser 1990 ). In a tourism factory setting, customer satisfaction is the key factor for successful and depends highly on the behaviors of frontline service providers. Kutner and Cripps ( 1997 ) indicated that customers should be managed as assets, and that customers vary in their needs, preferences, buying behavior, and price sensitivity. A tourism factory remains competitive by increasing its service quality relative to that of competitors. Delivering superior customer value and satisfaction is crucial to firm competitiveness (Kotler and Armstrong 1997 ; Weitz and Jap 1995 ; Deng et al. 2013 ). It is crucial to know what customers value most and helps firms allocating resource utilization for continuously improvement based on their needs and wants. The findings of Customer Satisfaction Index (CSI) studies can serve as predictors of a company’s profitability and market value (Anderson et al. 1994 ; Eklof et al. 1999 ; Chiu et al. 2011 ). Such findings provide useful information regarding customer behavior based on a uniform method of customer satisfaction, and offer a unique opportunity to test hypotheses (Anderson et al. 1997 ).

The basic structure of the CSI model has been developed over a number of years and is based on well-established theories and approaches to consumer behavior, customer satisfaction, and product and service quality in the fields of brands, trade, industry, and business (Fornell 1992 ; Fornell et al. 1996 ). In addition, the CSI model leads to superior reliability and validity for interpreting repurchase behavior according to customer satisfaction changes (Fornell 1992 ). These CSIs are fundamentally similar in measurement model (i.e. causal model), they have some obvious distinctions in model’s structure and variable’s selection. Take full advantages of other nations’ experiences can establish the Taiwan CSI Model which is suited for Taiwan’s characters. Thus, the ACSI and ECSI have been used as a foundation for developing the Taiwan Customer Satisfaction Index (TCSI). The TCSI was developed by Chung Hua University and the Chinese Society for Quality in Taiwan. The TCSI provides Taiwan with a fair and objective index for producing vital information that can help the country, industries, and companies improve competitiveness. Every aspect of the TCSI that influences overall customer satisfaction can be measured through surveys, and every construct has a cause–effect relationship with the other five constructs (Fig.  1 ). The relationships among the different aspects of the TCSI are different from those of the ACSI, but are the same as those of the ECSI (Lee et al. 2005 , 2006 ).

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The Taiwan Customer Satisfaction Index model

The traditional CSI model for measuring customer satisfaction and loyalty is restricted and does not consider the performance of firms. Moreover, as theoretical and empirical research has shown, the relationship between attribute-level performance and overall satisfaction is asymmetric. If the asymmetries are not considered, the impact of the different attributes on overall satisfaction is not correctly evaluated (Anderson and Mittal 2000 ; Matzler and Sauerwein 2002 ; Mittal et al. 1998 ; Matzler et al. 2003 , 2004 ). Few studies have investigated CSI models that contain different levels of performance (satisfaction), especially in relation to satisfaction levels of a tourism factory. To evaluate overall satisfaction accurately, the impact of the different levels of performance should be considered (Matzler et al. 2004 ). The purpose of this study is to apply the TCSI model that contains different levels of performance to improve and ensure the understanding of firm operational efficiency by managers in the tourism factory. A partial least squares (PLS) was performed to test the theoretical model due to having been successfully applied to customer satisfaction analysis. The PLS is well suited for predictive applications (Barclay et al. 1995 ) and using path coefficients that regard the reasons for customer satisfaction or dissatisfaction and providing latent variable scores that could be used to report customer satisfaction scores. Our findings provide support for the application of TCSI model to derive tourist satisfaction information.

Literature review

National customer satisfaction index (csi).

The CSI model includes a structural equation with estimated parameters of hidden categories and category relationships. The CSI can clearly define the relationships between different categories and provide predictions. The basic CSI model is a structural equation model with latent variables which are calculated as weighted averages of their measurement variables, and the PLS estimation method calculates the weights and provide maximum predictive power of the ultimate dependent variable (Kristensen et al. 2001 ). Many scholars have identified the characteristics of the CSI (Karatepe et al. 2005 ; Malhotra et al. 1994 ).

Although the core of the models are in most respects standard, they have some obvious distinctions in model’s structure and variable’s selection so that their results cannot be compared with each other and some variations between the SCSB (Swedish), the ACSI (American), the ECSI (European), the NCSB (Norwegian) and other indices. For example, the image factor is not employed in the ACSI model (Johnson et al. 2001 ); the NCSB eliminated customer expectation and replaced with corporate image; the ECSI model does not include the customer complaint as a consequence of satisfaction. Many scholars have identified the characteristics of the CSI (Karatepe et al. 2005 ; Malhotra et al. 1994 ). The ECSI model distinguishes service quality from product quality (Kristensen et al. 2001 ) and the NCSB model applies SERVQUAL instrument to evaluate service quality (Johnson et al. 2001 ). A quality measure of a single customer satisfaction index is typically developed according to a certain type of culture or the culture of a certain country. When developing a system for measuring or evaluating a certain country or district’s customer satisfaction level, a specialized customer satisfaction index should be developed.

As such, the ACSI and ECSI were used as a foundation to develop the TCSI. The TCSI was developed by Chung Hua University and the Chinese Society for Quality. Every aspect of the TCSI that influences overall customer satisfaction can be measured through surveys, and every construct has a cause–effect relationship with the other five constructs. The TCSI assumes that currently: (1) Taiwan corporations have ability of dealing with customer complaints; customer complaints have already changed from a factor that influences customer satisfaction results to a factor that affects quality perception; (2) The expectations, satisfaction and loyalty of customers are affected by the image of the corporation. The concept that customer complaints are not calculated into the TCSI model is that they were removed based on the ECSI model (Lee et al. 2005 , 2006 , 2014a , b ; Guo and Tsai 2015 ; Tsai et al. 2015a , b ; 2016a ).

TCSI model and service quality

Service quality is frequently used by both researchers and practitioners to evaluate customer satisfaction. It is generally accepted that customer satisfaction depends on the quality of the product or service offered (Anderson and Sullivan 1993 ). Numerous researchers have emphasized the importance of service quality perceptions and their relationship with customer satisfaction by applying the NCSI model (e.g., Ryzin et al. 2004 ; Hsu 2008 ; Yazdanpanah et al. 2013 ; Chiu et al. 2011 ; Temizer and Turkyilmaz 2012 ; Mutua et al. 2012 ; Dutta and Singh 2014 ). Ryzin et al. ( 2004 ) applied the ACSI to U.S. local government services and indicated that the perceived quality of public schools, police, road conditions, and subway service were the most salient drivers of satisfaction, but that the significance of each service varied among income, race, and geography. Hsu ( 2008 ) proposed an index for online customer satisfaction based on the ACSI and found that e-service quality was more determinative than other factors (e.g., trust and perceived value) for customer satisfaction. To deliver superior service quality, an online business must first understand how customers perceive and evaluate its service quality. This study developed a basic model for using the TCSI to analyze Taiwan’s tourism factory services. The theoretical model comprised 14 observation variables and the following six constructs: image, customer expectations, perceived quality, perceived value, customer satisfaction, and loyalty.

Research methods

The measurement scale items for this study were primarily designed using the questionnaire from the TCSI model. In designing the questionnaire, a 10-point Likert scale (with anchors ranging from strongly disagree to strongly agree) was used to reduce the statistical problem of extreme skewness (Fornell et al. 1996 ; Qu et al. 2015 ; Tsai 2016 ; Tsai et al. 2016b ; Zhou et al. 2016 ). A total of 14 items, organized into six constructs, were included in the questionnaire. The primary questionnaire was pretested on 30 customers who had visited a tourism factory. Because the TCSI model is preliminary research in the tourism factory, this study convened a focus group to decide final attributes of model. The focus group was composed of one manager of tourism factory, one professor in Hospitality Management, and two customers with experience of tourism factory.

We used the TCSI model (Fig.  1 ) to structure our research. From this structure and the basic theories of the ACSI and ECSI, we established the following hypotheses:

Image has a strong influence on tourist expectations.

Image has a strong influence on tourist satisfaction.

Image has a strong influence on tourist loyalty.

Tourist expectations have a strong influence on perceived quality.

Tourist expectations have a strong influence on perceived values.

Tourist expectations have a strong influence on tourist satisfaction.

Perceived quality has a strong influence on perceived value.

Perceived quality has a strong influence on tourist satisfaction.

Perceived value has a strong influence on tourist satisfaction.

Customer satisfaction has a strong influence on tourist loyalty.

The content of our surveys were separated into two parts; customer satisfaction and personal information. The definitions and processing of above categories are listed below:

  • Part 1 of the survey assessed customer satisfaction by measuring customer levels of tourism factory image, expectations, quality perceptions, value perceptions, satisfaction, and loyalty toward their experience, and used these constructs to indirectly survey the customer’s overall evaluation of the services provided by the tourism factory.
  • Part 2 of the survey collected personal information: gender, age, family situation, education, income, profession, and residence.

The six constructs are defined as follows:

  • Image reflects the levels of overall impression of the tourism factory as measured by two items: (1) word-of-mouth reputation, (2) responsibility toward concerned parties that the tourist had toward the tourism factory before traveling.
  • Customer expectations refer to the levels of overall expectations as measured by two items: (1) expectations regarding the service of employees, (2) expectations regarding reliability that the tourist had before the experience at the tourism factory.
  • Perceived quality was measured using three survey measures: (1) the overall evaluation, (2) perceptions of reliability, (3) perceptions of customization that the tourist had after the experience at the tourism factory.
  • Perceived value was measured using two items: (1) the cost in terms of money and time (2) a comparison with other tourism factories.
  • Customer satisfaction represents the levels of overall satisfaction was captured by two items: (1) meeting of expectations, (2) closeness to the ideal tourism factory.
  • Loyalty was measured using three survey measures: (1) the probabilities of visiting the tourism factory again (2) attending another activity held by the tourism factory, (3) recommending the tourism factory to others.

Data collection and analysis

The survey sites selected for this study was the parking lots of one food tourism factory in Taipei, Taiwan. A domestic group package and individual tourists were a major source of respondents who were willing to participate in the survey and completed the questionnaires themselves based on their perceptions of their factory tour experience. Four research assistants were trained to conduct the survey regarding to questionnaire distribution and sampling.

To minimize prospective biases of visiting patterns, the survey was conducted at different times of day and days of week—Tuesday, Thursday, Saturday for the first week; Monday, Wednesday, Friday and Sunday for the next week. The afternoon time period was used first then the morning time period in the following weeks. The data were collected over 1 month period.

Of 300 tourists invited to complete the questionnaire, 242 effective responses were obtained (usable response rate of 80.6 %). The sample of tourists contained more females (55.7 %) than males (44.35 %). More than half of the respondents had a college degree or higher, 28 % were students, and 36.8 % had an annual household income of US $10,000–$20,000. The majority of the respondents (63.7 %) were aged 20–40 years.

Comparison of the TCSI models for satisfied and dissatisfied customers

Researchers have claimed that satisfaction levels differ according to gender, age, socioeconomic status, and residence (Bryant and Cha 1996 ). Moreover, the needs, preferences, buying behavior, and price sensitivity of customers vary (Kutner and Cripps 1997 ). Previous studies have demonstrated that it is crucial to measure the relative impact of each attribute for high and low performance (satisfaction) (Matzler et al. 2003 , 2004 ). To determine the reasons for differences, a satisfaction scale was used to group the sample into satisfied (8–10) and dissatisfied (1–7) customers.

The research model was tested using SmartPLS 3.0 software, which is suited for highly complex predictive models (Wold 1985 ; Barclay et al. 1995 ). In particular, it has been successfully applied to customer satisfaction analysis. The PLS method is a useful tool for obtaining indicator weights and predicting latent variables and includes estimating path coefficients and R 2 values. The path coefficients indicate the strengths of the relationships between the dependent and independent variables, and the R 2 values represent the amount of variance explained by the independent variables. Using Smart PLS, we determined the path coefficients. Figures  2 and ​ and3 3 show ten path estimates corresponding to the ten research hypothesis of TCSI model for satisfied and dissatisfied customers. Every path coefficient was obtained by bootstrapping the computation of R 2 and performing a t test for each hypothesis. Fornell et al. ( 1996 ) demonstrated that the ability to explain the influential latent variables in a model is an indicator of model performance, in particular the customer satisfaction and customer loyalty variables. From the results shown, the R 2 values for the customer satisfaction were 0.53 vs. 0.50, respectively; and the R 2 value for customer loyalty were 0.64 vs. 0.60, respectively. Thus, the TCSI model explained 53 vs. 50 % of the variance in customer satisfaction; 64 vs. 60 % of that in customer loyalty as well.

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Path estimate of the TCSI model for satisfied customers. *p < 0.05; **p < 0.01; ***p < 0.001

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Path estimate of the TCSI model for dissatisfied customers. *p < 0.05; **p < 0.01; ***p < 0.001

According to the path coefficients shown in Figs.  2 and ​ and3, 3 , image positively affected customer expectations (β = 0.58 vs. 0.37), the customer satisfaction (β = 0.16 vs. 0.11), and customer loyalty (β = 0.47 vs. 0.16). Therefore, H1–H3 were accepted. Customer expectations were significantly related to perceived quality (β = 0.94 vs. 0.83). However, customer expectations were not significantly related to perceived value shown as dotted line (β = −0.01 vs. −0.20) or the customer satisfaction, shown as dotted line (β = −0.21 vs. −0.32). Thus, H4 was accepted but H5 and H6 were not accepted. Perceived value positively affected the customer satisfaction (β = 0.27 vs. 0.14), supporting H7. Accordingly, the analysis showed that each of the antecedent constructs had a reasonable power to explain the overall customer satisfaction. Furthermore, perceived quality positively affected the customer satisfaction (β = 0.70 vs. 0.62), as did perceived value (β = 0.83 vs. 0.74). These results confirm H8 and H9. The path coefficient between the customer satisfaction and customer loyalty was positive and significant (β = 0.63 vs. 0.53). This study tested the suitability of two TCSI models by analyzing the tourism factories in Taiwan. The results showed that the TCSI models were all close fit for this type of research. This study provides empirical evidence of the causal relationships among perceived quality, image, perceived value, perceived expectations, customer satisfaction, and customer loyalty.

To observe the effects of antecedent constructs of perceived value (e.g., customer expectation and perceived quality), customer expectations were not significantly related to perceived value for either satisfied or dissatisfied customers. Furthermore, satisfied customers were affected more by perceived quality (β = 0.83 vs. 0.74), as shown in Table  1 . Regarding the effect of the antecedents of customer satisfaction (e.g., image, customer expectations, perceived value and perceived quality), the total effects of perceived quality on the customer satisfaction of satisfied and dissatisfied customers were 0.92 and 0.72. The total effects of image on the customer satisfaction of satisfied and dissatisfied customers were 0.45 and 0.19. Thus, the satisfaction level of satisfied customers was affected more by perceived quality. Consequently, regarding customer satisfaction, perceived quality is more important than image for satisfied and dissatisfied customers. Numerous researchers have emphasized the importance of service quality perceptions and their relationship with customer satisfaction by applying the CSI model (e.g., Ryzin et al. 2004 ; Hsu 2008 ; Yazdanpanah et al. 2013 ; Chiu et al. 2011 ; Temizer and Turkyilmaz 2012 ; Mutua et al. 2012 ; Dutta and Singh 2014 ). This is consistent with the results of previous research ( O’Loughlin and Coenders 2002 ; Yazdanpanah et al. 2013 ; Chiu et al. 2011 ; Chin and Liu 2015 ; Chin et al. 2016 ).

Table 1

Path estimates of the satisfied and dissatisfied customer CSI model

CS customer satisfaction

* p < 0.05; ** p < 0.01; *** p < 0.001

With respect to the effect of the antecedents of customer loyalty (e.g., image and customer satisfaction), the total effects of image on customer loyalty for satisfied and dissatisfied customers were 0.57 and 0.21. In other words, the customer loyalty of satisfied customers was affected more by customer satisfaction. Customer satisfaction was significantly related to the customer loyalty of both satisfied and dissatisfied customers, and satisfied customers were affected more by customer satisfaction ( β  = 0.63 vs. 0.14). Consequently, regarding customer loyalty, customer satisfaction is more important than image for both satisfied and dissatisfied customers. Numerous studies have shown that customer satisfaction is a crucial factor for ensuring customer loyalty (Barsky 1992 ; Smith and Bolton 1998 ; Hallowell 1996 ; Grønholdt et al. 2000 ). This study empirically supports the notion that customer satisfaction is positively related to customer loyalty.

The TCSI model has a predictive capability that can help tourism factory managers improve customer satisfaction based on different performance levels. Our model enables managers to determine the specific factors that significantly affect overall customer satisfaction and loyalty within a tourism factory. This study also helps managers to address different customer segments (e.g., satisfied vs. dissatisfied); because the purchase behaviors of customers differ, they must be treated differently. The contribution of this paper is to propose two satisfaction levels of CSI models for analyzing customer satisfaction and loyalty, thereby helping tourism factory managers improve customer satisfaction effectively.

Fornell et al. ( 1996 ) demonstrated that the ability to explain influential latent variables in a model, particularly customer satisfaction and customer loyalty variables, is an indicator of model performance. However, the results of this study indicate that customer expectations were not significantly related to perceived value for either satisfied or dissatisfied customers. Moreover, they were affected more by perceived quality of customer satisfaction. Numerous researchers have found that the construct of customer expectations used in the ACSI model does not significantly affect the level of customer satisfaction (Johnson et al. 1996 , 2001 ; Martensen et al. 2000 ; Anderson and Sullivan 1993 ).

Through the overall effects, this study derived several theoretical findings. First, the factors with the largest influence on customer satisfaction were perceived quality and perceived expectations, despite the results showing that customer expectations were not significantly related to perceived value or customer satisfaction. Hence, customer expectations indirectly affected customer satisfaction through perceived quality. Accordingly, perceived quality had the greatest influence on customer satisfaction. Likewise, our results also show that satisfied customers were affected more by perceived quality than dissatisfied customers. This study determined that perceived quality, whether directly or indirectly, positively influenced customer satisfaction. This result is consistent with those of Cronin and Taylor ( 1992 ), Cronin et al. ( 2000 ), Hsu ( 2008 ), Ladhari ( 2009 ), Terblanche and Boshoff ( 2010 ), Deng et al. ( 2013 ), and Yazdanpanah et al. ( 2013 ).

Second, the factors with the most influence on customer loyalty were image and customer satisfaction. The results of this study demonstrate that the customer loyalty of satisfied customers was affected more by customer satisfaction. Consequently, regarding customer loyalty, customer satisfaction is more important than image for satisfied customers. Lee ( 2015 ) found that higher overall satisfaction increased the possibility that visitors will recommend and reattend tourism factory activities. Moreover, numerous studies have shown that customer satisfaction is a crucial factor for ensuring customer loyalty (Barsky 1992 ; Smith and Bolton 1998 ; Hallowell 1996 ; Su 2004; Deng et al. 2013 ). In initial experiments on ECSI, corporate image was assumed to have direct influences on customer expectation, satisfaction, and loyalty. Subsequent experiments in Denmark proved that image affected only expectation and satisfaction and had no relationship with loyalty (Martensen et al. 2000 ). In early attempts to build the ECSI model, image was defined as a variable involving not only a company’s overall image but products or brand awareness; thus image is readily connected with customer expectation and perception. Therefore, this study contributes to relevant research by providing empirical support for the notion that customer satisfaction is positively related to customer loyalty.

In addition to theoretical implications, this study has several managerial implications. First, the TCSI model has a satisfactory predictive capability that can help tourism factory managers to examine customer satisfaction more closely and to understand explicit influences on customer satisfaction for different customer segments by assessing the accurate causal relationships involved. In contrast to general customer satisfaction surveys, the TCSI model cannot obtain information on post-purchase customer behavior to improve customer satisfaction and achieve competitive advantage.

Second, this study not only indicated that each of the antecedent constructs had reasonable power to explain customer satisfaction and loyalty but also showed that perceived quality exerts the largest influence on the customer satisfaction of Taiwan’s tourism factory industry. Therefore, continually, Taiwan’s tourism factories must endeavor to enhance their customer satisfaction, ideally by improving service quality. Managers of Taiwan’s tourism factories must ensure that service providers deliver consistently high service quality.

Third, this research determined that the factors having the most influence on customer loyalty were image and customer satisfaction. Therefore, managers of Taiwan’s tourism factories should allow customer expectations to be fulfilled through experiences, thereby raising their overall level of satisfaction. Regarding image, which refers to a brand name and its related associations, when tourists regard a tourism factory as having a positive image, they tend to perceive higher value of its products and services. This leads to a higher level of customer satisfaction and increased chances of customers’ reattending tourism factory activities.

Different performance levels exist in how tourists express their opinions about various aspects of service quality and satisfaction with tourism factories. Customer segments can have different preferences depending on their needs and purchase behavior. Our findings indicate that tourists belonging to different customer segments (e.g., satisfied vs. dissatisfied) expressed differences toward service quality and customer satisfaction. Thus, the management of Taiwan’s tourism factories must notice the needs of different market segments to meet their individual expectations. This study proposes two satisfaction levels of CSI models for analyzing customer satisfaction and loyalty, thereby helping tourism factory managers improve customer satisfaction effectively. Compared with traditional techniques, we believe that our method is more appropriate for making decisions about allocating resources and for assisting managers in establishing appropriate priorities in customer satisfaction management.

Limitations and suggestions for future research

This study has some limitations. First, the tourism factory surveyed in this study was a food tourism factory operating in Taipei, Taiwan, and the present findings cannot be generalized to the all tourism factory industries. Second, the sample size was quite small for tourists (N = 242). Future research should collect a greater number of samples and include a more diverse range of tourists. Third, this study was preliminary research on tourism factories, and domestic group package tourists were a major source of the respondents. Future studies should collect data from international tourists as well.

Authors’ contributions

Writing: S-CL; providing case and idea: Y-CL, Y-CW, Y-FH, C-HC; providing revised advice: S-BT, WD. All authors read and approved the final manuscript.

Acknowledgements

Department of Technology Management, Chung-Hua University, Hsinchu, Taiwan. This work was supported by University of Electronic Science Technology of China, Zhongshan Institute (414YKQ01 and 415YKQ08).

Competing interests

The authors declare that they have no competing interests.

Contributor Information

Yu-Cheng Lee, Email: moc.liamg@861eelrd .

Yu-Che Wang, Email: wt.ude.uhc@gnawyrrej .

Shu-Chiung Lu, Email: moc.liamg@56ulecarg .

Yi-Fang Hsieh, Email: moc.liamg@gnafiyheish .

Chih-Hung Chien, Email: moc.liamtoh@neihctsirhc .

Sang-Bing Tsai, Phone: +86-22-2350-8785, Email: moc.liamtoh@gnibgnas .

Weiwei Dong, Email: moc.361@4949gnodiewiew .

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Grad Coach

How To Write An A-Grade Literature Review

3 straightforward steps (with examples) + free template.

By: Derek Jansen (MBA) | Expert Reviewed By: Dr. Eunice Rautenbach | October 2019

Quality research is about building onto the existing work of others , “standing on the shoulders of giants”, as Newton put it. The literature review chapter of your dissertation, thesis or research project is where you synthesise this prior work and lay the theoretical foundation for your own research.

Long story short, this chapter is a pretty big deal, which is why you want to make sure you get it right . In this post, I’ll show you exactly how to write a literature review in three straightforward steps, so you can conquer this vital chapter (the smart way).

Overview: The Literature Review Process

  • Understanding the “ why “
  • Finding the relevant literature
  • Cataloguing and synthesising the information
  • Outlining & writing up your literature review
  • Example of a literature review

But first, the “why”…

Before we unpack how to write the literature review chapter, we’ve got to look at the why . To put it bluntly, if you don’t understand the function and purpose of the literature review process, there’s no way you can pull it off well. So, what exactly is the purpose of the literature review?

Well, there are (at least) four core functions:

  • For you to gain an understanding (and demonstrate this understanding) of where the research is at currently, what the key arguments and disagreements are.
  • For you to identify the gap(s) in the literature and then use this as justification for your own research topic.
  • To help you build a conceptual framework for empirical testing (if applicable to your research topic).
  • To inform your methodological choices and help you source tried and tested questionnaires (for interviews ) and measurement instruments (for surveys ).

Most students understand the first point but don’t give any thought to the rest. To get the most from the literature review process, you must keep all four points front of mind as you review the literature (more on this shortly), or you’ll land up with a wonky foundation.

Okay – with the why out the way, let’s move on to the how . As mentioned above, writing your literature review is a process, which I’ll break down into three steps:

  • Finding the most suitable literature
  • Understanding , distilling and organising the literature
  • Planning and writing up your literature review chapter

Importantly, you must complete steps one and two before you start writing up your chapter. I know it’s very tempting, but don’t try to kill two birds with one stone and write as you read. You’ll invariably end up wasting huge amounts of time re-writing and re-shaping, or you’ll just land up with a disjointed, hard-to-digest mess . Instead, you need to read first and distil the information, then plan and execute the writing.

Free Webinar: Literature Review 101

Step 1: Find the relevant literature

Naturally, the first step in the literature review journey is to hunt down the existing research that’s relevant to your topic. While you probably already have a decent base of this from your research proposal , you need to expand on this substantially in the dissertation or thesis itself.

Essentially, you need to be looking for any existing literature that potentially helps you answer your research question (or develop it, if that’s not yet pinned down). There are numerous ways to find relevant literature, but I’ll cover my top four tactics here. I’d suggest combining all four methods to ensure that nothing slips past you:

Method 1 – Google Scholar Scrubbing

Google’s academic search engine, Google Scholar , is a great starting point as it provides a good high-level view of the relevant journal articles for whatever keyword you throw at it. Most valuably, it tells you how many times each article has been cited, which gives you an idea of how credible (or at least, popular) it is. Some articles will be free to access, while others will require an account, which brings us to the next method.

Method 2 – University Database Scrounging

Generally, universities provide students with access to an online library, which provides access to many (but not all) of the major journals.

So, if you find an article using Google Scholar that requires paid access (which is quite likely), search for that article in your university’s database – if it’s listed there, you’ll have access. Note that, generally, the search engine capabilities of these databases are poor, so make sure you search for the exact article name, or you might not find it.

Method 3 – Journal Article Snowballing

At the end of every academic journal article, you’ll find a list of references. As with any academic writing, these references are the building blocks of the article, so if the article is relevant to your topic, there’s a good chance a portion of the referenced works will be too. Do a quick scan of the titles and see what seems relevant, then search for the relevant ones in your university’s database.

Method 4 – Dissertation Scavenging

Similar to Method 3 above, you can leverage other students’ dissertations. All you have to do is skim through literature review chapters of existing dissertations related to your topic and you’ll find a gold mine of potential literature. Usually, your university will provide you with access to previous students’ dissertations, but you can also find a much larger selection in the following databases:

  • Open Access Theses & Dissertations
  • Stanford SearchWorks

Keep in mind that dissertations and theses are not as academically sound as published, peer-reviewed journal articles (because they’re written by students, not professionals), so be sure to check the credibility of any sources you find using this method. You can do this by assessing the citation count of any given article in Google Scholar. If you need help with assessing the credibility of any article, or with finding relevant research in general, you can chat with one of our Research Specialists .

Alright – with a good base of literature firmly under your belt, it’s time to move onto the next step.

Need a helping hand?

literature review customer satisfaction example

Step 2: Log, catalogue and synthesise

Once you’ve built a little treasure trove of articles, it’s time to get reading and start digesting the information – what does it all mean?

While I present steps one and two (hunting and digesting) as sequential, in reality, it’s more of a back-and-forth tango – you’ll read a little , then have an idea, spot a new citation, or a new potential variable, and then go back to searching for articles. This is perfectly natural – through the reading process, your thoughts will develop , new avenues might crop up, and directional adjustments might arise. This is, after all, one of the main purposes of the literature review process (i.e. to familiarise yourself with the current state of research in your field).

As you’re working through your treasure chest, it’s essential that you simultaneously start organising the information. There are three aspects to this:

  • Logging reference information
  • Building an organised catalogue
  • Distilling and synthesising the information

I’ll discuss each of these below:

2.1 – Log the reference information

As you read each article, you should add it to your reference management software. I usually recommend Mendeley for this purpose (see the Mendeley 101 video below), but you can use whichever software you’re comfortable with. Most importantly, make sure you load EVERY article you read into your reference manager, even if it doesn’t seem very relevant at the time.

2.2 – Build an organised catalogue

In the beginning, you might feel confident that you can remember who said what, where, and what their main arguments were. Trust me, you won’t. If you do a thorough review of the relevant literature (as you must!), you’re going to read many, many articles, and it’s simply impossible to remember who said what, when, and in what context . Also, without the bird’s eye view that a catalogue provides, you’ll miss connections between various articles, and have no view of how the research developed over time. Simply put, it’s essential to build your own catalogue of the literature.

I would suggest using Excel to build your catalogue, as it allows you to run filters, colour code and sort – all very useful when your list grows large (which it will). How you lay your spreadsheet out is up to you, but I’d suggest you have the following columns (at minimum):

  • Author, date, title – Start with three columns containing this core information. This will make it easy for you to search for titles with certain words, order research by date, or group by author.
  • Categories or keywords – You can either create multiple columns, one for each category/theme and then tick the relevant categories, or you can have one column with keywords.
  • Key arguments/points – Use this column to succinctly convey the essence of the article, the key arguments and implications thereof for your research.
  • Context – Note the socioeconomic context in which the research was undertaken. For example, US-based, respondents aged 25-35, lower- income, etc. This will be useful for making an argument about gaps in the research.
  • Methodology – Note which methodology was used and why. Also, note any issues you feel arise due to the methodology. Again, you can use this to make an argument about gaps in the research.
  • Quotations – Note down any quoteworthy lines you feel might be useful later.
  • Notes – Make notes about anything not already covered. For example, linkages to or disagreements with other theories, questions raised but unanswered, shortcomings or limitations, and so forth.

If you’d like, you can try out our free catalog template here (see screenshot below).

Excel literature review template

2.3 – Digest and synthesise

Most importantly, as you work through the literature and build your catalogue, you need to synthesise all the information in your own mind – how does it all fit together? Look for links between the various articles and try to develop a bigger picture view of the state of the research. Some important questions to ask yourself are:

  • What answers does the existing research provide to my own research questions ?
  • Which points do the researchers agree (and disagree) on?
  • How has the research developed over time?
  • Where do the gaps in the current research lie?

To help you develop a big-picture view and synthesise all the information, you might find mind mapping software such as Freemind useful. Alternatively, if you’re a fan of physical note-taking, investing in a large whiteboard might work for you.

Mind mapping is a useful way to plan your literature review.

Step 3: Outline and write it up!

Once you’re satisfied that you have digested and distilled all the relevant literature in your mind, it’s time to put pen to paper (or rather, fingers to keyboard). There are two steps here – outlining and writing:

3.1 – Draw up your outline

Having spent so much time reading, it might be tempting to just start writing up without a clear structure in mind. However, it’s critically important to decide on your structure and develop a detailed outline before you write anything. Your literature review chapter needs to present a clear, logical and an easy to follow narrative – and that requires some planning. Don’t try to wing it!

Naturally, you won’t always follow the plan to the letter, but without a detailed outline, you’re more than likely going to end up with a disjointed pile of waffle , and then you’re going to spend a far greater amount of time re-writing, hacking and patching. The adage, “measure twice, cut once” is very suitable here.

In terms of structure, the first decision you’ll have to make is whether you’ll lay out your review thematically (into themes) or chronologically (by date/period). The right choice depends on your topic, research objectives and research questions, which we discuss in this article .

Once that’s decided, you need to draw up an outline of your entire chapter in bullet point format. Try to get as detailed as possible, so that you know exactly what you’ll cover where, how each section will connect to the next, and how your entire argument will develop throughout the chapter. Also, at this stage, it’s a good idea to allocate rough word count limits for each section, so that you can identify word count problems before you’ve spent weeks or months writing!

PS – check out our free literature review chapter template…

3.2 – Get writing

With a detailed outline at your side, it’s time to start writing up (finally!). At this stage, it’s common to feel a bit of writer’s block and find yourself procrastinating under the pressure of finally having to put something on paper. To help with this, remember that the objective of the first draft is not perfection – it’s simply to get your thoughts out of your head and onto paper, after which you can refine them. The structure might change a little, the word count allocations might shift and shuffle, and you might add or remove a section – that’s all okay. Don’t worry about all this on your first draft – just get your thoughts down on paper.

start writing

Once you’ve got a full first draft (however rough it may be), step away from it for a day or two (longer if you can) and then come back at it with fresh eyes. Pay particular attention to the flow and narrative – does it fall fit together and flow from one section to another smoothly? Now’s the time to try to improve the linkage from each section to the next, tighten up the writing to be more concise, trim down word count and sand it down into a more digestible read.

Once you’ve done that, give your writing to a friend or colleague who is not a subject matter expert and ask them if they understand the overall discussion. The best way to assess this is to ask them to explain the chapter back to you. This technique will give you a strong indication of which points were clearly communicated and which weren’t. If you’re working with Grad Coach, this is a good time to have your Research Specialist review your chapter.

Finally, tighten it up and send it off to your supervisor for comment. Some might argue that you should be sending your work to your supervisor sooner than this (indeed your university might formally require this), but in my experience, supervisors are extremely short on time (and often patience), so, the more refined your chapter is, the less time they’ll waste on addressing basic issues (which you know about already) and the more time they’ll spend on valuable feedback that will increase your mark-earning potential.

Literature Review Example

In the video below, we unpack an actual literature review so that you can see how all the core components come together in reality.

Let’s Recap

In this post, we’ve covered how to research and write up a high-quality literature review chapter. Let’s do a quick recap of the key takeaways:

  • It is essential to understand the WHY of the literature review before you read or write anything. Make sure you understand the 4 core functions of the process.
  • The first step is to hunt down the relevant literature . You can do this using Google Scholar, your university database, the snowballing technique and by reviewing other dissertations and theses.
  • Next, you need to log all the articles in your reference manager , build your own catalogue of literature and synthesise all the research.
  • Following that, you need to develop a detailed outline of your entire chapter – the more detail the better. Don’t start writing without a clear outline (on paper, not in your head!)
  • Write up your first draft in rough form – don’t aim for perfection. Remember, done beats perfect.
  • Refine your second draft and get a layman’s perspective on it . Then tighten it up and submit it to your supervisor.

Literature Review Course

Psst… there’s more!

This post is an extract from our bestselling short course, Literature Review Bootcamp . If you want to work smart, you don't want to miss this .

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38 Comments

Phindile Mpetshwa

Thank you very much. This page is an eye opener and easy to comprehend.

Yinka

This is awesome!

I wish I come across GradCoach earlier enough.

But all the same I’ll make use of this opportunity to the fullest.

Thank you for this good job.

Keep it up!

Derek Jansen

You’re welcome, Yinka. Thank you for the kind words. All the best writing your literature review.

Renee Buerger

Thank you for a very useful literature review session. Although I am doing most of the steps…it being my first masters an Mphil is a self study and one not sure you are on the right track. I have an amazing supervisor but one also knows they are super busy. So not wanting to bother on the minutae. Thank you.

You’re most welcome, Renee. Good luck with your literature review 🙂

Sheemal Prasad

This has been really helpful. Will make full use of it. 🙂

Thank you Gradcoach.

Tahir

Really agreed. Admirable effort

Faturoti Toyin

thank you for this beautiful well explained recap.

Tara

Thank you so much for your guide of video and other instructions for the dissertation writing.

It is instrumental. It encouraged me to write a dissertation now.

Lorraine Hall

Thank you the video was great – from someone that knows nothing thankyou

araz agha

an amazing and very constructive way of presetting a topic, very useful, thanks for the effort,

Suilabayuh Ngah

It is timely

It is very good video of guidance for writing a research proposal and a dissertation. Since I have been watching and reading instructions, I have started my research proposal to write. I appreciate to Mr Jansen hugely.

Nancy Geregl

I learn a lot from your videos. Very comprehensive and detailed.

Thank you for sharing your knowledge. As a research student, you learn better with your learning tips in research

Uzma

I was really stuck in reading and gathering information but after watching these things are cleared thanks, it is so helpful.

Xaysukith thorxaitou

Really helpful, Thank you for the effort in showing such information

Sheila Jerome

This is super helpful thank you very much.

Mary

Thank you for this whole literature writing review.You have simplified the process.

Maithe

I’m so glad I found GradCoach. Excellent information, Clear explanation, and Easy to follow, Many thanks Derek!

You’re welcome, Maithe. Good luck writing your literature review 🙂

Anthony

Thank you Coach, you have greatly enriched and improved my knowledge

Eunice

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Literature Review

  • First Online: 01 January 2013

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literature review customer satisfaction example

  • Alireza Faed 2  

Part of the book series: Springer Theses ((Springer Theses))

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Early in Chapter 1, we introduced and discussed various terms and concepts regarding customer relationship management, its components and the differences between CRM systems and strategies. We also explained the significance of complaints and their importance in any organization.

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Faed, A. (2013). Literature Review. In: An Intelligent Customer Complaint Management System with Application to the Transport and Logistics Industry. Springer Theses. Springer, Heidelberg. https://doi.org/10.1007/978-3-319-00324-5_2

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Published : 13 June 2013

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