This report aims to explore all the research literature available on the topic ‘factors that influence customer satisfaction with hedonic services’. Customer satisfaction is a very important concept because it leads to repeat patronage, positive word of mouth and ultimately increased profits for the business. It is therefore of much benefit to understand the factors which influence customers satisfaction to allow businesses to better serve their customers. This report begins by defining hedonic services and customer satisfaction according to the relevant literature. The factors which influence customer satisfaction on hedonic services are then outlined. The selected factors are the seven Ps of the service marketing mix; price, promotion, place, physical evidence, people, process and product. The gaps in the literature are then mentioned with recommendations for future research which will provide a full view of this topic.
2.1 Hedonic Services
Hedonic services are those which are fun, emotive or pleasure driven and are sought after by customers to fulfil a psychological or emotional need (Joseph-Matthews, Bonn & Snepenger 2009; Ng, Russell- Bennett and Dagger 2007; Fiang & Wang 2006; Hirschman & Holbrook 1982). It must be noted that services are not simply classified as hedonic or not hedonic but instead services have different degrees of hedonism (Strombeck & Wakefield 2008). The hedonic nature of a service is also dependant on the consumer, their motivations and context, not solely on the product itself (Strombeck & Wakefield 2008). The same service may be seen as hedonic to one consumer and non hedonic to another, generally though services can be classified as mainly hedonic services or mainly utilitarian services (Strombeck & Wakefield 2008). Some examples of mainly hedonic services are; cinemas, sporting games, concerts and spas.
2.2 Customer Satisfaction
The concept of customer satisfaction is important to all consumer based industries and this has lead to many different definitions being developed. Customer Satisfaction is the emotional response or state felt by consumers during post-purchase evaluation (Meirovich& Bahnan 2009; Tam 2004). It is suggested that this evaluation is comparing the costs and rewards of the service to the consumer (Tam 2004). Furthermore, it is suggested that customer satisfaction is based upon the customer’s evaluation of the service compared to their expectations prior to service delivery (Syzmanski & Henard 2001; Caruana, Money & Berthon 2000). Kondo (2001) adds that just because there is not dissatisfaction this does not necessarily mean that there is satisfaction. This is supported by Matzler and Sauerwein (2002) who propose there are three tiers to customer satisfaction, as shown in Figure 1.
Figure 1: Three Tiers of Customer Satisfaction
Source: developed for this report
As can be seen in the diagram the three tiers of customer satisfaction are:...