IMPACT OF SERVICE QUALITY ON CUSTOMER ACQUISITION AND RETENTION

INTRODUCTION:
Today due to highly increase in markets competition, the bottom line of marketing strategies of firm is to generate profit and to participate in companys growth. Quality, satisfaction, acquisition and retention of customer are the main issues of all organizations. Mostly companies are interested in marketing strategies, these companies study, evaluate, implement, all the strategies that aim is to improve service quality of business for the acquisition and retention of the customer that helps to maximize the share of customer in finance, it also beneficial for firms financial performance. (FEN & LIAN, SERVICE QUALITY AND CUSTOMER SATISFACTION: ANTECEDENTS OF CUSTOMERS RE-PATRONAGE INTENTIONS) Acquisition of a customer is a very sensitive action. If we bear low cost on services that we are providing to our customers then we can easily gain new customer and easily retain that customers by offering them low prices (Lewis, 2006). Price perceptions and customer indifference have linear effect on the retention of customer (Ranaweera & Neely, 2003). Previous Studies on customer retention narrowly stressed on loyalty and satisfaction of customer without linking them in a model for explaining customer retention. If principles of retention are not managed in a well manner then customer may leave us and it will become very difficult or hard to get back or retain them. According to cost perspective in bank service the cost of retaining and existing customer is five times less than creating new customer (Gan, Cohen, Clemes, & Chong, 2006). Today in competitive market the service quality, customer satisfaction, acquisition, and retention are recognized, as playing an important role for survival and success of organization. For survival of business, high quality service is a strong weapon. If service quality of a business or organization is good then retention of customer will be easy for that organization because customers will automatically come back for re-enjoying good quality services. In this way we can easily create new customer and retain him / her. (FEN & LIAN, SERVICE

QUALITY AND CUSTOMER SATISFACTION:ANTECEDENTS OF CUSTOMERS REPATRONAGE INTENTIONS).

Bibliography
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