The Importance of Customer Satisfaction and Customer Loyalty in the Service Sector

Abstract

This chapter presents the overview of customer satisfaction; customer satisfaction and service quality; customer satisfaction and Online Travel Agency (OTA) websites in the tourism industry; customer satisfaction and switching behavior in the mobile service company; the overview of customer loyalty; the advanced issues of customer loyalty program; and the relationships among customer loyalty, customer satisfaction, brand management, and social media. Creating loyalty among customers can help service company significantly increase the purchases of existing products, charge premium prices for the appreciation of value-added services, and create the positive word-of-mouth promotion for the company, which is the significant marketing objective in the service sector. The chapter argues that facilitating customer satisfaction and customer loyalty has the potential to enhance organizational performance and gain sustainable competitive advantage in the service sector.