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For attached paper, Prepare and submit draft literature review summarizing the central themes or key findings from the identified secondary and primary scholarly literature sources that you propose including in your research proposal and as they relate to your problem statement and research question(s). All literature used must be properly cited and referenced in APA format.


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Running head: PROBLEM SUMMARY AND PROBLEM STATEMENT 1 Problem Summary and Problem Statement Problem Topic: "The Relationship between Consumer Satisfaction and Organization Performance" Problem Summary: Customers are critical to any company as they ensure growth and development of every business and to help them stay in the production process. When consumers are not satisfied with the goods produced by any company they tend to switch to a closer substitute. Therefore every business usually tries their level best to ensure consumers are satisfied. The ways of ensuring customers satisfaction in Rocklyn Industry has been a nightmare due to the increasing level of competition in the industry. This has led to decreased sales volume as many of the company produce is still in the warehouse awaiting sales. The sales and marketing department of the company has faced many hurdles to cross in ensuring that the company products sales in the market. The primary attribute that has been the cause of the decline in sales volume, which translates to low consumer satisfaction, is due to low-quality goods produced by Rocklyn Company in comparison to their competitors. The company has also not integrated the use of the modern method of production, which has derailed the production process whereas other companies can produce high quality products by use of the new methods of production. Another reason for the company experiencing consumer satisfaction with the goods coming from the company is due to the packaging of goods by the company. Many consumers have raised concern about the packaging system of the company thus reducing their satisfaction with Rocklyn products thus declining the company performances (Gomez, McLaughlin & Wittink, 2004). Due to the consumers becoming unsatisfied with Rocklyn produce it has taken a toll on the company performance as many of its PROBLEM SUMMARY AND PROBLEM STATEMENT 2 products do not enter the competitive industry in which the firm is performing. The services rendered by the company primarily transportation and after services provided by the company are also of not satisfactory to the consumers. Many have complained of improper handling of their goods, and the modes of transportation of the goods by the company have also been ineffective. Some customers have raised issues of their goods being stolen, exchanged and destroyed when they are transported by the company which has led to many consumers becoming unsatisfied with the services offered by the company reducing the purchasing power of such individuals hence decline performance of the company. It must be noted that consumers play a vital role in the performance of any organization and the need for ensuring they are offered ample services and high quality goods and services which will enhance business performance (Oliver, 2014). Therefore there is a definite relationship between consumers satisfaction and an organization performance as in many cases they determine a company performance. Therefore Rocklyn Company needs to ensure the consumers are satisfied with the company products through the production of high quality goods, offering efficient services, improvement of production methods, and ensuring the customers are offered services which will improve the company sales and improve the consumer's satisfaction, for example, offering product discounts. Problem Statement: Rocklyn Company in recent time has been experiencing decline sales volume which has affected the general company performance. The research focuses on determining whether or not consumer satisfaction affects company performance. References Gomez, M. I., McLaughlin, E. W., & Wittink, D. R. (2004). Customer satisfaction and retail sales performance: an empirical investigation. Journal of retailing, 80(4), 265-278. PROBLEM SUMMARY AND PROBLEM STATEMENT Oliver, R. L. (2014). Satisfaction: A behavioral perspective on the consumer. Routledge. 3
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Running head: Literature Review

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Literature Review
Institution Affiliation
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Literature Review

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The Relationship between Consumer Satisfaction and Organization Performance
Customers want to feel a certain level of satisfaction when buying products. They want to
feel that the effort they put into buying a product is equivalent or at a lower level than the buying
experience they will get. It is therefore important for organizations to ensure that consumers’
positive emotional state of satisfaction is reached when they buy their goods. It has often been a
discussion on whether consumer satisfaction affects organizations and the extent to which it
affects organizations. The level of satisfaction a customer gets from buying your product will
depend on whether the same customer will come back again and buy your product or choose a
competitors’ product (Oliver, 2014). Organizations in the service sector are more affected by
customer satisfaction, unlike organizations that produce products as customers are more likely to
use a service again if they are satisfied than buying the same product. Organizations should
ensure they find out the response customers have about their products and services as this will
assist them in making crucial decisions in ensuring customers are satisfied. By being aware of
how customers feel about their products, they can work on bettering their products and services
and improve in the way they relate to their customers (Stein & Bowen, 2003).
Researchers have widely studied and continue to study this customer satisfaction and
organization performance relationship. The more customers are satisfied by organizations, the
easier it is to retain customers as more people will repurchase the goods. This loyalty then leads
to a rise in profits for the firm. As customers are a big part of the success of a business, finding
out the level of their satisfaction is essential in keeping an organization sustainable. According to
Stein and Bowen (2003), the way a customer behaves is highly impacted by their extent of
satisfaction. A customer’s referrals and purchase retention will depend on how satisfied they
were with an organization’s product or service. In addition, studies have revealed that certain

Literature Review

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factors assist in measuring how an organization has performed. These factors include: market
share, revenue earned from sales, and profit margins are impacted by customer satisfaction.
Therefore, organizations that have a higher customer satisfaction tend to have a higher
organizational performance.
In recent years, researchers have done studies to show the relationship between consumer
satisfaction and organization performanc...


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