A study on linking consumer satisfaction to profits

This project looks into theoretically and empirically the connections between consumer satisfaction, productivity and profitability. In the research literature, there is conflict about the possible combined effects of productivity and consumer satisfaction in attaining profitability. A few experts think that increasing productivity and improving consumer satisfaction are compatible because increased consumer satisfaction cuts down on time and efforts dedicated to handling rework, returns etc., thus decreasing the total cost. On the contrary, a few claim that improved consumer satisfaction would need extra initiatives in improving product (including service) attributes and thus expand the total cost. This kind of contrary conclusions in the literature make it hard for businesses to choose which technique they need to adopt so that relevant corporate strategies can be developed. To deal with the issue, this dissertation first looks at the theoretical framework about the association between consumer satisfaction and repurchase intention, which in turn, determines profitability. Particularly, it researches the function of consumer satisfaction in forming repurchase intention among other essential marketing variables like perceived quality and assessed value.

Contents

CHAPTER 1 INTRODUCTION
1.1 Research Problems and Proposals
1.2 Data Source
1.3 Contributions
CHAPTER 2 THE MEDIATING ROLE OF CONSUMER SATISFACTION IN FORMING CONSUMERS’ REPURCHASE INTENTION
2.1 Introduction
2.2 A Conceptual Model of Consumer Repurchase Intention
2.2.1 Antecedents of Repurchase Intention: Theoretical Models and Empirical Evidence
2.2.2 The Conceptual Model
2.3 Methodology
2.3.1 Data and HKCSI Survey
2.3.2 Measurement of Research Constructs
2.4 Analysis and Results
2.4.1 Model Estimation
2.4.2 Reliability and Validity of the Model
2.4.3 Path Analysis and Hypothesis Testing
2.5 Conclusion and Discussion
2.6 Improper Solutions and Heywood Cases in SEM
2.6.1 Introduction
2.6.2 Causes and Consequences of Heywood Cases
2.6.3 Strategies for Coping with Heywood Cases
2.6.4 Heywood Cases in This Study
2.6.5 Discussions
Appendix I Statistical Estimation Models by SEM
CHAPTER 3 SECURING PRICE COMPETITIVENESS THROUGH CONSUMER SATISFACTION IN A HIGHLY COMPETITVE MAREKT
3.1 Introduction
3.2 Literature Review on Price Tolerance
3.2.1 Price Tolerance and Its Analogues
3.2.2 Price Increase/Decrease Tolerances and Consumer Satisfaction
3.3 A Mediational Model of Price Increase/Decrease Tolerances
3.3.1 The Model
3.3.2 Research Hypotheses
3.4 An Empirical Study—The Hong Kong International Telephone Service (HKITS) Industry
3.4.1 HKITS—A Highly Competitive Industry
3.4.2 The Sample
3.5 Analysis and Results
3.5.1 Consumer Satisfaction and Price Increase Tolerance
3.5.2 Consumer Satisfaction and Price Decrease Tolerance
3.5.3 Price Increase/Decrease Tolerances and Repurchase Intention
3.5.4 From Satisfaction to Repurchase Intention—the Role of Price Tolerance
3.6 Conclusion and Discussion
3.6.1 Asymmetric Role of Price Increase/Decrease Tolerances
3.6.2 Managerial Implications
CHAPTER 4 CONSUMER SATISFACTION, PRODUCTIVITY, AND PROFITABILITY——A FUZZY ANALYSIS
4.1 Introduction
4.2 Background of Research
4.2.1 Productivity
4.2.2 Consumer Satisfaction
4.2.3 Tradeoffs in Achieving Profitability?
4.2.4 Research Hypotheses
4.3 Research Methodology
4.3.1 Measurements
4.3.3 The Data
4.3.4 The Estimation Models
4.4 Consumer Satisfaction, Productivity and Profitability—An OLR Analysis
4.4.1 A Preliminary Analysis
4.4.2 Multicollinearity
4.4.3 Residual Analysis
4.4.4 Result Summaries
4.5 Linking Consumer Satisfaction to Profits—A Fuzzy Perspective
4.5.1 Tanaka Model—the Basic FLR Model
4.5.2 A Proposed Revised FLR Model
4.5.3 FLR Analysis
4.5.4 Discussion
4.6 Summary and Conclusions
Appendix II Fuzzy Set and Fuzzy Numbers
CHAPTER 5 CONCLUSION AND DISCUSSION….

Source: City University of Hong Kong

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