Cognitive and affective drivers of customer satisfaction and loyalty

Abstract

To remain relevant in the current business environment, companies need to ensure that their customers are satisfied with the products and services on offer, and in turn, remain loyal to the company. Companies can obtain feedback from customers regarding their experiences, using either real-time transactional measures focused on measuring a specific interaction or reputational measures that focus on measuring the cumulative satisfaction of customers. The time difference between an interaction with a company and when customer satisfaction surveys are conducted impacts the feedback received from customers. The current study investigates the difference between these two methodological approaches and how cognitive and emotive features of a service engagement measured at different time intervals impact customer satisfaction and likelihood to recommend. A random sampling method was used and data was collected over a 13-month period using online self-completion questionnaires. Firstly, the results indicate that emotions have a significant influence on customer satisfaction and likelihood to recommend and that the combination of cognitive and emotive measures predicts customer satisfaction and recommendation more accurately than any of these measures in isolation. Secondly, the intensity of negative emotions remains the same with the passage of time while the intensity of positive emotions decline. Thirdly, both positive and negative emotions have a significant influence on customer satisfaction and recommendation when measured after an extended time period. Organisations need to eliminate factors that cause intense negative emotions in customers while simultaneously increasing the intensity of positive emotional experiences to ensure that the effect of positive emotions is sustained for an extended time period. As products and services become more commoditised companies have to rethink their value proposition to differentiate themselves from their competitors. Management and employees intentionally have to focus on identifying and managing customer emotions lest the benefits of improving customers’ emotional experiences be lost. If companies can succeed in meeting or exceeding the cognitive and emotional needs and expectations of customers, it will positively affect satisfaction and loyalty, which in turn will have a positive influence on repurchase intention and organisational profits, and ensure the long-term sustainability of the company. Experiential service design can create immersive experiences where customers feel an emotional connection with the company and co-create extraordinary experiences that go beyond the mere consumption of products or services.