The impact of customer satisfaction and relationship quality on customer retention: A critical reassessment and model development

TLDR: In this paper, the authors developed a conceptual foundation for investigating the customer retention process, with the use of the concepts of customer satisfaction and relationship quality, and developed a more comprehensive view of the customer's quality perception.

Abstract: Customer satisfaction with a company’s products or services is often seen as the key to a company’s success and long-term competitiveness. In the context of relationship marketing, customer satisfaction is often viewed as a central determinant of customer retention. However, the few empirical investigations in this area indicate that a direct relationship between these constructs is weak or even nonexistent. The overall purpose of this article is to develop a conceptual foundation for investigating the customer retention process, with the use of the concepts of customer satisfaction and relationship quality. The article involves a critical examination of the satisfaction ‐ retention relationship, and the development of a more comprehensive view of the customer’s quality perception. ©1997 John Wiley & Sons, Inc.