Customer Satisfaction Theoretical Review

9

CHAPTER II LITERATURE REVIEW

A. Theoretical Review

1. Customer Satisfaction

a. The Definition of Customer Satisfaction Satisfaction is a happy or disappointed feeling of someone that arises from comparing the perceived product‘s performance with their expectation Kotler Keller, 2008: 138-139. Daryanto Setyabudi 2014:. 37 explain that if the performanceservice received pursuant to or more than expected, then the client will be satisfied, otherwise if the performanceservices received did not match with what was expected, then the client will be dissatisfied and disappointed. According to Zeithaml Bitner 2004: 86, satisfaction is the customer‘s evaluation of a product or service in terms of whether that product or service has met their needs and expectation. It can be concluded that when someone‘s expectation was fulfilled, then someone will feel satisfied, but if the expectation was not fulfilled, someone might feel dissatisfied. 10 b. The benefit of understanding customer satisfaction According to Tjiptono Chandra 2005: 140, the benefits from customer satisfaction presence are as follows: 1 The mutually beneficial long term relationship could be intertwined between the institution and its customer. 2 Allowing the opportunity for business growth through repeated purchases, cross-selling, and up-selling. 3 Customer loyalty can be formed. 4 Communication of positive testimony that could potentially attract new customers. 5 Customer and the public perception of the company‘s reputation are getting positive. 6 The obtained profit may increase. A service industry can use customer satisfaction in increasing its quality. After the customer satisfaction known, the institution can make the positive opportunities that gained from the customer satisfaction in order to get a better performance of the institution in the future. c. The Customer Satisfaction Measurement Nasution 2001: 55 states that there are four ways to measure the customer satisfaction, they are 1 the system of complaints and suggestions, 2 ghost shopping, 3 lost customer analysis, 4 customer satisfaction survey. In this research the researcher will use the customer satisfaction survey because it can obtain direct responses or feedbacks from both students and parents as stakeholders of Homeschooling Kak Seto Solo. 11

2. Customer Satisfaction in Educational Institution