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Linguistics Assignment Question
Students are required to undertake a research project involving industry. After acquiring knowledge regarding how to conduct research, and possible problem spaces to research in, the student will be required to apply these skills in practice. The student should engage with an organisation to undertake this research project in.
Students are required to present a final written report based off their research project. This should follow the generic structure outlined in the study guide.
The study guide corresponding to this unit, in combination with the lecture material and textbook have been designed to equip the student with everything that they need to undertake this work integrated learning research project.
Linguistics Assignment Solution
Problem Space
Customer retention is essential for the profitability of a service provider which is impacted by a range of factors such as competition, service quality, location, customer satisfaction, employee loyalty and behavioral intentions (Abd-El-Salam et al., 2013). Elegant Eyebrows will be considered for this research study, which is a specialized eyebrow services salon established in 2010. The salon operates walk-in eyebrow kiosks shopping centers across Queensland, Australia. Despite its business expansion strategy, Elegant Eyebrows faces a reduction in customer base.
According to industry reports, there is a shift in the business models of beauty salons from a traditional set-up to specialized service providers (Service Skills, 2015). Despite this, the salon is experiencing a reduction in the number of customers, especially a reduction in their existing customers. A research study is proposed to analyze this issue to help the salon in identifying reasons for low customer retention, gaps between the salon’s service and customer perception and problem areas.
Literature Review
Various factors are found to influence customer retention in service industries.
Customer Satisfaction
Customer satisfaction has a long-term financial impact on business operations (Angelova & Zekiri, 2011). Highly satisfied customers are likely to purchase more frequently from the same service provider. Firstly, customer satisfaction enhances customer loyalty and influences customers’ future repurchase intentions and behavior (W.Y.Yee et al., 2010). Secondly, highly satisfied customers are willing to pay premium prices for their services and are less price-sensitive, thereby increasing the economic performance of the firm (Virvilaite et al., 2009). The final premise is that customer satisfaction results in the enhanced overall reputation of the firm through positively influencing customer evaluation (Abd-El-Salam et al., 2013).
Employee Loyalty
The organizational knowledge of employees is the primary determinant of superior service quality (W.Y.Yee et al., 2010). Loyal employees are presumed to be positively correlated with high service quality and customer perception (W.Y.Yee et al., 2010). The level of contact between employees and customers determines the relationship between employee loyalty and business performance. This concept can help a service provider take appropriate measures to react and customize the services it offers to its customers.
Competitive Market Environment
The competitive environment of the service sector has been identified as a factor that influences the link between customer satisfaction and loyalty (W.Y.Yee et al., 2010). In a highly competitive market where there are many alternative products and services for customers to select from and the cost of switching is low, customers are not loyal unless they are fully satisfied. (W.Y.Yee et al., 2010). The link between customer satisfaction and loyalty is weak for price-sensitive users. However, the cost of switching does not affect customer loyalty in the group of price-insensitive users.
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