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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Customer Satisfaction Perpetuates Loyalty: A Case Study

Nalini Arumugam, Asha Latha Bala Subramaniam, Gopiganthan Mylvaganam, Kuldip Kaur Maktiar Singh

http://dx.doi.org/10.6007/IJARBSS/v10-i12/8282

Open access

Courier services have become increasingly popular with the advent of Internet shopping. However, customers may not always experience the best service. Hence, the problems related to a customer's delivery experience do not only jeopardize the courier's brand image but also its business footing or reputation. How these courier services address and handle customer complaints in substandard delivery experience determines customer satisfaction which is an integral aspect in maintaining long-standing consumer loyalty. This study (1) gauges how conflict resolution affects customer satisfaction in the complaint handling process and (2) determines to what extent customer satisfaction perpetuates customer loyalty. A local courier service was chosen for this study and analysis was carried out on data gathered from Twitter as well as semi-structured interview sessions with five participants, who were randomly selected. It was found that the approach taken to resolve a conflict significantly influences customer satisfaction in the complaint handling process. When customer complaint is handled within the constructs of procedural, interactional, and distributive justice there is a positive experience, subsequently increasing customer satisfaction with the responsiveness in the handling process. This study also revealed that there is a significant correlation between customer satisfaction and customer loyalty - the higher the level of customer satisfaction, the stronger the customer loyalty.

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In-Text Citation: (Arumugam et al., 2020)
To Cite this Article: Arumugam, N., Subramaniam, A. L. B., Mylvaganam, G., & Singh, K. K. M. (2020). Customer Satisfaction Perpetuates Loyalty: A Case Study. International Journal of Academic Research in Business and Social Sciences, 10(12), 149–161.