Customer Satisfaction was recognized as major outcome of marketing activity which helps in explaining post purchase phenomenon such as repeat purchase and brand loyalty. Oliver (1999) defined Customer Satisfaction as the consumer’ s sense that consumption provides outcomes against a standard of pleasure versus displeasure. Eshghi, Roy and Ganguli (2008) suggested that relational quality, competitiveness, reliability, reputation and transmission quality are significant predictors of customer satisfaction.
Aydin and Ozer(2005) defined it as customer’s overall (dis)satisfaction with the brand based on all encounters and experiences with that particular brand. Hence, in the study overall customer satisfaction with the service provider was evaluated instead of consumer’s specific transaction experiences. They also suggested that increased customer satisfaction, increased trust in the firm and switching costs are essential for customer loyalty. Customer loyalty is a relationship between relative attitude towards on entity and repeat patronage behavior (Dick and Basu, 1994.
Oliver (1999) suggested that customer satisfaction and Customer Loyalty are linked inextricably. Harris and Goode (2004) suggested the satisfaction’s mediating role in the relation between perceived quality or value and loyalty. Anti?? n, Camarero, and Carrero (2007) have confirmed that the mediating effect of customer satisfaction between the predisposing (poor service quality and low firm commitment) and precipitating factors (price unfairness and anger incidents) of dissolution and the consumer’s switching intention.
Also, Spiros P. Gounaris, Nektarios A. Tzempelikos, Kalliopi Chatzipanagiotou (2007) explained how customer percieved value influences, through customer satisfaction and loyalty, the buying behaviour of consumers. In our study, the term perceived price is to mean the degree of reasonability which a customer associates a given price fixed for the usage of the mobile service, value- added services charges and the monthly rental charges. This is mainly a perception factor in the consumer mind.
We test for the influence of this factor, the perceived price on the construct of customer satisfaction. Customer satisfaction in turn encompasses the comprehensive view of the mobile service provider in the customer`s mind. While customer satisfaction is contingent on several factors, herein we explore the effect of the perceived price on the same. There has been a body of research carried out in the past, in various sectors, on the influence of this factor on the overall customer satisfaction levels. Carmen Anti??
n, Carmen Camarero, and Mirtha Carrero (2007) found evidence in the insurance industry that unfair pricing is a determinant to customer satisfaction. In fact, they have concluded that unfair pricing strongly impacts switching, in a direct and indirect manner via customer satisfaction. Chada and Deepa Kapoor (2009) have stated that Customer satisfaction in turn affects the price senility of a customer. Evangelia Blery, Nick Batistatos et al (2008) conclude that the perceived price is negatively affects a repeat purchase of a customer in a negative manner.
Makam S Balaji (2009) examined the effects ofvarious factors, including perceived price on customer satisfaction in the Indian mobile telephony sphere and found it to be strongly associated. The findings of Muhammad Mohsin Butt and Ernest Cyril de Run(2008) show that the satisfaction levels of Pakistani mobile telephone service users satisfaction is dependent on price, among several other factors. Ristola and M. Kesti(2006) conceptualized that the service quality depends upon the above mentioned factors.
The physical factors involves the physical product and supports, interactive quality refers to the interaction between the customer and the service provider, and the corporate quality is symbolic in nature and involves the perception about the company in the minds of the customers and its brand image. Service quality is defined as a global assessment that is the customer’s overall impression of the relative inferiority/superiority of the service provider and its services. Further, Rusk and Zahorik supported the expectation-perception gap for measuring service quality.
The main antecedents to perceived service quality are the customer expectation and perceived performance (Bitner and Hubert). Further, Richard Spreng, Linda Shi,Thomas Page suggested that net Customer Satisfaction has a marginally higher impact on switching intention than total perceived service quality. Also, A. Taylor,Thomas L. Baker(1994) concluded that Consumer satisfaction moderates the relationship between the quality of service and intention to switch. Zhilin Yang, Robin T. Peterson (2004) found that switching costs moderate the relationship between satisfaction and perceived value.
Next, Hsin-Hui (Sunny) Hu, Jay Kandampully and Thanika Devi Juwaheer(2009) examined the association and impact of customer satisfaction and perceived value and found that customer satisfaction is affected by perceived service quality. Das, Bhagaban Mohanty, Sangeeta(2007) carried out a study in the Indian context and found that better perceived service quality leads to increased customer satisfaction. Customer satisfaction results from the comparison of expected performance with that of the perceived actual performance (Churchill, Suprenant, 1982).
Parasuram et al also suggested that service quality is positively related to the customer satisfaction levels and that service quality perceptions are dependent not only on the outcomes but also on the evaluation of the service delivery process by the customers. Venetis and Ghauri (2000) viewed that the service quality is regarded as one of the few means for service differentiation and competitive advantage that attracts new customers and contributes to the market share. Further, Rakshit Negi (2009) concludes that the service quality was found to be significantly linked with the overall cellular phone user satisfaction.
Also, Birgit Leisen(2006) suggests, as perceived levels of satisfaction increase, the less likely the customer is going to switch to a more conveniently located competitor and, hence, the more loyal he or she remains. Further, T. Vanniarajan, P. Gurunathan (2009) concluded that the cellular operators need to engage in improving the quality of both the value added services and the main service quality to increase their customer satisfaction which would lead to a greater customer loyalty. Hence differentiation leads to customer satisfaction.