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c. Volume-increasing promotion tools for customers could include:
1 Sampling is a popular though expensive promotional tool Solomon et. al 2010. Food and beverage companies often
provide free samples to consumers to give them a chance to try a new product for free Solomon et. al 2010.
2 Loyalty programs reward consumers for their frequent, continuing purchase of a product Solomon et. al 2010. As
observed in Lithuanian supermarkets, they all issue loyalty cards for customers, though the loyalty programmers do
differ amongst themselves. Usually a customer attains 1 of the total purchase value on to the loyalty card, this valid
for the newly introduced RIMI loyalty card.
D. Customer Satisfaction
1. Definition of Customer Satisfaction
Kotler and Keller 2012:150 define satisfaction as a person‘s feelings of pleasure or disappointment resulting from
comparing a product perceived performance or outcome in relation to his or her expectations. If the performance falls short of
expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted. Service
quality has a close relationship with customer satisfaction. Quality gives a push to consumers for establish a strong relationship with
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the company. In the long term, this relationship enables companies to understand consumer expectations and needs carefully. Thus,
companies can increase customer satisfaction and at the end its
satisfaction can create loyalty or customer loyalty.
Buttle 2006 in Ibrahim et. al 2014 agreed that satisfaction is a pleasurable fulfillment response while
dissatisfaction is un-pleasurable fulfillment response. Customer satisfaction is a key factor in formation of
customer‘s desires for future purchase Mittal Kamakura, 2001. Furthermore, the satisfied customers will probably talk to others
about their good experiences. This fact, especially in the Middle Eastern cultures, where the social life has been shaped in a way
that social communication with other people enhances the society, is more important Jamal and Naser 2002 in Mohd 2014.
2. Measurement of Customer Satisfaction
Kotler and Amstrong 2014:148 discuss several methods to measure customer satisfaction, which are:
a. Complaint and Suggestion System Each customer oriented service organization should provide
the widest opportunity to its customers to submit suggestion, criticism, opinions, and their complaints. Information obtained
through this method can provide new ideas and input are
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valuable to the company making it possible to react quickly and respond in overcome the problems that arise.
b. Customer Satisfaction Survey Like in this research, company can do a survey to measure
customer satisfaction using such as questioner or by phone calls to a random sample of their customers. Through the
survey, companies will get responses and feedback directly from customers and give a positive sign that companies pay
attention to them. Customer satisfaction survey is divided into four categories, which are:
a. Directly report satisfaction: The respondents are being asked directly with question in order to know if they are
very satisfied, satisfied, neutral, dissatisfied, or very dissatisfied. This survey is to use to collect the customer
opinion and needs which can give the result called the customer satisfaction index. This customer satisfaction
indexes the standard of company needs to maintain. b. Derived dissatisfaction: The question that being asked
included two aspects, how high is the customer expectation in the certain attribute, and how high is the
performance that customer‘s feel of this attribute.
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c. Problem analysis: The respondents are being asked to describe two things; the problem which related with the
company offer and suggestion for improvement. d. Importance performance analysis: The respondents are
asked to rate the services according to the customer importance and company performance in each attributes.
e. Ghost shopping: This method use a person to pose as potential buyer to report their findings on strong and
weakness points when experience buying the company‘s and competitor‘s product. Ghost shoppers also can
observe how the company and its competitors in serving customer demands, answering customer question, and
solve any problems or customer complaints. f. Lost customer analysis: The Company contact customers
who have stopped buying or switched to another supplier to learn why this condition happened and in order to
understand and take the police to further improve or refine.
g. Some caution in measuring customer satisfaction: The Company must make a well-structured questionnaire;
otherwise the customer would face a huge questionnaire. The company must also be able to recognize that two
customers can report being highly satisfied for two
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reasons. One person maybe easily satisfied most of the time, and the other one might be hard to please but was
pleased on this occasion. According to Sondoh Jr. et. al 2007 in Thakur and Singh
2012 Customer satisfaction is the accumulated experience of a customer‘s purchase and consumption experiences. It was
therefore; client satisfaction construct in this paper will be measured through overall satisfaction toward the services.
Customer‘s satisfaction is influenced by two factors which is experiences and expectations with service performance.
Operationally, satisfaction is similar to an attitude, as it can be assessed as the sum of the satisfactions with the various attributes
of the product or service. Satisfaction may be defined as expectation before purchase and perception about performance
after purchase, The expectancy disconfirmation paradigm suggests that consumers are satisfied when the product perform better than
expected positive disconfirmation, dissatisfied when consumers expectations exceeded actual product performance negative
disconfirmation, and neutral satisfaction when the product performance matches expectations zero disconfirmation or
confirmation.
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E. Customer Loyalty
