Problems of measuring service quality, satisfaction and loyalty and their effect on profitability

Abstract

According to the majority of market researchers, the long-term success of organisations depends on the fact that they can keep and increase the number of their loyal customers. The aim of this study is to introduce the theoretical background and measurement problems of loyalty. Researchers believe that the key to loyalty is quality, which increases satisfaction, and satisfaction leads to loyalty. However, the solid logic of quality-satisfaction-profitability is questioned by numerous studies. Summarizing the results of research in this topic, Zeithaml (2000) pinpoints that evidence can be found for positive and negative correlations. Domestic researches concluded that neither the measurement of quality, nor that of loyalty could justify the generalizability of applied models (Kenesei - Szántó 1998, Rekettye - Hetesi 2001, Veres - Hetesi 2003). The controversial statements of the research findings made motivated the author to study this issue. The study also questions the fact that there is a simple formula, which could be offered to organisations for achieving market success, and increase growth and profit. In the study, the definition and measurability of each element of quality-satisfaction-profitability is reviewed, including its weaknesses.