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4. Research Method & Hypotheses
In this study, Taiwan Customer Satisfaction Index (TCSI) is the main model to measure customer satisfaction; TCSI consists of different variables that analyze the cause-and-effect relations between the antecedents and consequences of customer satisfaction. To measure the case-and-effect relations of TCSI model, IBM SPSS Statistics 20 will be selected for the further understanding of analyzing statistical data.
Based on the previous sections, objectives of this study and theoretical basis of the TCSI model, 10 different hypotheses are developed in order to have an understanding of smartphone users’ satisfaction and the hypotheses are developed based on the following effects.
4.1. Image Effects
Brand image is considered as important factor in establishing and maintaining loyalty among customers; several studies had shown the important effects of brand reputation and brand image in the customer’s buying behavior (Zeithaml, 1981). Wu (2011) stated brand image has been assessed as an important antecedent of customer satisfaction and loyalty; a positive corporate brand image not only helps companies to increase competition but also encourages consumers to re-purchases (Porter and Claycomb, 1997). Aaker (1991) and Rory (2000) both pointed out customers would likely to increase the satisfaction of usage and recommend the good corporate image brands to others; similar theory was reported by De Chertanony and Harris (2000) that the positive corporate brands help companies achieving higher performance, such as sales.
Gensch (1978) stated brand image has big impacts on the purchase intention and the customer
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satisfaction; the more customers consider a brand valuable, the more sales can be expected to be achieved. Davies et al. (2003) conducted a research study on the relationship between corporate brand image and customer satisfaction; and the result was positive; other searchers Johnson et al. (2001) also found that consumers more favorable the image has higher perceived in quality, value, satisfaction and loyalty.
Bloemer & Ruyter (1998) reported that brand image acts as a mediator of satisfaction; and customer satisfaction is the result from different attributes of a brand’s image, also customer loyalty is related to customer satisfaction directly. Their study proved that the brand image has the direct impacts on its customer’s satisfaction and loyalty. Aydin and Zer (2005) claimed the major antecedents of customer loyalty are brand image, perceived service quality, trust and customer switching costs; and loyal customers may buy more, accept higher prices and have a positive word-of-mouth effect. In addition, Johnson et al. (2001) stated brand image affect customer behavioral intentions such as customer loyalty. Other researchers (Loughlin and Coenders 2002; Kristensen, Martensen and Gronholdt 2000; Bloemer and Schroder 2002) also support the same theory that corporate image is predictor of loyalty. In line with existing researches, three hypothesizes related image are created:
H1: Image has a high correlation with customer expectation H2: Image has a high correlation with customer satisfaction H3: Image has a high correlation with customer loyalty
4.2. Customer Expectation Effects
Service quality is a measurement of the level of how well the service matches the customer expectation (Lewis & Booms, 1983). More and more marketing researchers have been
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emphasized on perceived service quality; Zeithaml (1998) claimed that perceived service quality is defined as the customer’s assessment of overall performance of service.
Parasuraman et al. (1985, 1988) considered the customer’s assessment of overall service quality depends on the gap between customer expectation and perception of actual performance of service. Chaudhuri (2002) argued the perceived quality may lead to consumer satisfaction, which is determined by perceived performance and expectation.
Rust and Oliver (1994) claimed that ultimately it is perceived value that attracts a customer or lures away a customer from a competitor; perceived value not only influences customers at the pre-purchase stage but also affects customers’ satisfactions, intention to recommend and return behavior at the post purchase phase (Dodds, Monroe and Grewal 1991; Parasuraman and Grewal 2000; Petrick 2001).
Customer expectations are consequences of pervious experiences with company’s products or services; customer expectations play as an important performance indicator for companies to understand whether their company products or service has met or exceeded customers’
expectations. Anderson et al. (1994) stated that customer expectations’ construct is anticipated to have a direct and positive relationship with customer satisfaction. In addition, other marketing researchers Farris et al. (2010) claimed that expectations are a key factor behind customers’ satisfactions. Based on the statements by previous researchers, this study would like to know whether customer expectation would have positive effects towards perceived quality, perceived value and customer satisfaction. Thus, the following hypothesizes would be:
H4: Customer expectation has a high correlation with perceived quality
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H5: Customer expectation has a high correlation with perceived values H6: Customer expectation has a high correlation with customer satisfaction
4.3. Perceived Quality Effect
Perceived quality is the consumer judgment over the general excellence or over product superiority (Zeithaml 1988); and perceived value is defined from the perspectives of money, quality, benefit, and social psychology. In previous studies, many researchers had pointed out that higher perceived quality typically leads to higher perceived value (Sweeney et al., 1999;
Teas and Agarwal, 2000), and the relationship between both concepts is positive. Other empirical studies also reported that service quality will positively influence perceived value (Cronin et al., 1997; Cronin et al., 2000; Brady et al., 2001; Bauer et al., 2006).
According to Anderson et al. (1994), customer satisfaction is more influenced by the perceived quality than perceived price. A similar research conducted by Clemes et al. (2008) also indicated that perceived service quality affects customer satisfaction more than the perceived price. Taken together, the above discussion indicates that perceived quality is likely to have significant effects on perceived value and customer satisfaction. Therefore, the following hypotheses are established:
H7: Perceived quality has a high correlation with perceived value H8: Perceived quality has a high correlation with customer satisfaction
4.4. Perceived Value Effects
According to Cronin et al. (2000), perceived value has effects on satisfaction and customer loyalty; also Eggert and Ulaga (2002) discovered that perceived value positively influences customer satisfaction in most cases of conventional retailers. In addition, marketing
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researchers Schiffman and Kanuk (2004) reported that the overall objective of providing value to customers continuously and more effectively than competitors is to have and to retain highly satisfied customers. In telecommunication sector, Lin and Wang (2006) and Tung (2004) found positive relationship among perceived value and customer satisfaction.
Therefore, based on the evidences given above, the next hypothesis is developed:
H9: Perceived value has a high correlation with customer satisfaction
4.5. Customer Satisfaction Effects
Oliver (1997) reported customer satisfaction is an important driver to customer loyalty and the success of businesses; and customer satisfaction has been widely studied as a predictor of customer loyalty (Fornell et al., 1996: Cronin et al., 2000; Yang and Peterson, 2004). Many marketing researchers (Anderson and Sullivan 1993: Gronholdt, Martensen and Kristensen, 2000; Anderson and Mittal, 2000; Rust, Zahorik and Keiningham 1995; Gustafsson and Johnson 2002) had studied the relationship between satisfaction and loyalty; and the results supported that customer satisfaction had strong and positive effects on customer loyalty. Also, many empirical studies have pointed out that two of the more effective means of generating customer loyalty are to delight customers (Lee, Lee, and Feick, 2001; Oliver, 1999) and to deliver superior value derived from excellent services and quality products (Parasuraman and Grewal, 2000).These empirical results show that customer satisfaction has a positive association with customers’ loyalty. Hence, the next hypothesis is proposed:
H10: Customer satisfaction has a high correlation with customer loyalty
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