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Secondary Data Review Of Servqual Studies

1951 words - 8 pages

Secondary Data Review of SERVQUAL StudiesDoug HassRES341Ms. Janine Garrard4 February 2004Customer Service and its Effects on Customer Retention at ImageStreamExecutive Summary of Original ProposalImageStream Internet Solutions, Inc. is a privately held company in its 9th year of operation. ImageStream engineers, manufactures, and distributes Linux-based routing products for network and Internet applications. ImageStream products are used by Internet service providers (ISPs), governments, schools, and businesses in more than 75 countries around the world. As ImageStream moves toward its next decade, market forces require it, like most high technology companies, to be fast and responsive. ImageStream faces a competitive marketplace differentiated increasingly less by features and functionality and more by quality customer service and customer retention management.The study and development of customer service techniques and customer retention management programs has blossomed into its own industry. This increasing focus on customer satisfaction is not surprising, given the positive correlation between happy customers and successful companies illustrated in countless marketing research studies. This paper highlights SERVQUAL research related to the framework of service quality, the positive and negative impacts of service quality, and the effect of favorable and unfavorable customer intentions on perceived quality. This paper will examine research conducted by the original SERVQUAL authors, as well as follow-on studies commenting on the original methodology. The references enclosed include a summary of all references used in researching this project, whether or not they are quoted in this particular paper in the series.BackgroundThis paper examines customer retention at ImageStream from the context of customer service quality. As a company seeking to build market share and maintain a burgeoning customer base, ImageStream focuses on customer retention as a key component in remaining viable in the market.Weinstein and Johnson (1999) recommend that companies like ImageStream should spend "75% of its marketing budget on customer retention strategies" and to strengthen these relationships. Once customers commit to a product platform, and the longer they use and deploy that platform, the more profit ImageStream can realize. Longstanding, satisfied customers will generally continue, or often increase, purchasing, require less operational and customer service support, and be more willing to pay price premiums to remain with the company--all without incurring new customer acquisition costs (Pine II, Peppers, and Rogers, 1995). This paper will analyze how ImageStream's service relationship with its customers produces customer behaviors indicating whether or not a customer will remain an ImageStream customer. The methodology used will follow Zeithaml, Berry and Parasuraman's study on this topic (1996).Since replacing lost customers requires new customer...

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