1.1 Empirical Review of Literature

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1.

1 Empirical Review of Literature

Customer satisfaction and customer locality are both important issues of marketing. Both
these issues have been investigated by many researchers (Bilgihan, Madanoglu, and Ricci,
2016; Oliver, 2010; Makanyeza, 2015; Ruane, 2009). However, the relationship between
customer satisfaction and customer locality is not so straightforward rather mixed. Some
empirical studies have found positive association between these two variables (Zhao, 2013;
Trim and Lee, 2015; Paul, Sankaranarayanan, and Mekoth, 2016) while some studies have
found negative or no association (Erasmus and Donoghue, 2010; Cano, 2015; Coello and
Chang, 2015). Empirical studies failed to agree upon a decision concerning the relationship
between customer satisfaction and customer locality and this existing disagreement motivated
this study. However, in this section, empirical review of customer satisfaction and customer
locality has been discussed.

Concerning the relationship between customer satisfaction and customer locality some
empirical studies have reported positive results meaning that these two variables exhibit
positive association. For instance, empirical study performed by Bilgihan, Madanoglu, and
Ricci (2016) have focused on studying service attributes as drivers of behavioural locality in
casinos with special focus on the mediating effect of attitudinal locality. The study has
concluded that customer locality is significantly positively associated to customer satisfaction
as locality comes through satisfaction. Another empirical investigation performed by Ruane
(2009) has focused on investigating the contemporary trends in the fashion industry and
established a link with customer satisfaction and locality. This study has also found that
customer locality and customer satisfaction are significantly positively associated to each
other. These two findings clearly imply that customer satisfaction and customer locality are
positively associated. It means when a customer is satisfied with the brands product, it will
produce compliment to other potential customers and inspire them to buy from that brand.
Customer satisfaction cheapens the cost, new customers. Satisfied customers stay with the
brand and help to sustain the brand in the market (Thopte and Poldner, 2014).

However, there are some empirical studies that could not find a positive association between
customer satisfaction and customer locality. For instance, the empirical observation of Coello
and Chang (2015) has focused on the fast fashion industry to determine the impact of
customer satisfaction on customer locality. The study has concluded that fast fashion industry
changes rapidly and therefore customers run for updated and trendy outfits which leads to
reduced level of satisfaction among the customers. However, reduced level of satisfaction
does not necessarily reduce locality of the customers because they intend to buy the products
but for smaller time being they shift their focus unto the other. As consequence, the
association between customer satisfaction and customer locality becomes negative.
Moreover, the empirical investigation performed by Erasmus and Donoghue (2010) has also
found a negative association between customer satisfaction and customer locality.
Understanding the locality of customers, how they perceive for developing such behaviour
for a particular brand quantifies the impact of customers have on company Pero rpm NES
(Wendlandt and Schrader, 2007).
2 Research Aims and Objectives
The aim of this research is to instigate on the relationship between customer satisfaction and
consumer locality on the perspective of Zara in Westfield Stratford, UK. The objectives of
this research are

To instigate the customer satisfaction of Zara fashion.


To analyse the customer locality of Zara fashion.
To instigate the relationship between customer satisfaction and customer locality.
To recommend ways to improve customer satisfaction and locality.

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