CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDIES
To shed more light to the study being investigated, this chapter discusses several related literatures and studies essential in constructing concept on the study.
Related Literature
According to Russel and Murdick !"#"$ , customers play the most significant part in business. In fact the customer is the actual boss in a deal and is responsible for the actually profit for the organization. Customer is the one who uses the products and services and judges the quality of those products and services. ence it!s importance for an organization to retain customers or ma"e new customers and flourish business. To mana manage ge cust custom omer ers, s, orga organi niza zati tion onss shou should ld foll follow ow some some sort sort of appr approa oach ches es li"e li"e segmentation or division of customers into groups because each customer has to be considered valuable and profitable. An organization should always focus on loyal customers and should e#pand or multiply the service range to leverage impulsive customers. $or other types of customers strategies should be renovated and enhances for turning out these customers to satisfy thei theirr need needss and and modi modify fy thes thesee type typess of cust custom omer erss to let let them them fall fall under under loyal loyal and and impulsive category. %&tler !""'$ !""'$, satisf Acco Accord rdin ing g to %&tler satisfact action ion reflec reflects ts a person person!s !s compara comparativ tivee
judgments resulting from a product!s perceived performance in relation to his or her e#pectations. If the performance falls short of e#pectation, the customer is dissatisfied
and disappointed. If the performance matches the e#pectations, the customer is satisfied. If the performance e#ceeds e#pectations, the customers are highly satisfied or delighted. According to %otler, customer satisfaction is the response with pleasure or disappointment for the performance of certain product or service related to individual e#pectations. Tse and Wilt&n !""($ elaborated hunt definition where they said &customer
satisfaction is a process of consumer!s response to the evaluation of the perceived discrepancy between prior e#pectations and the actual performance of the product as perceived after its consumption!. E)an*el&s and +annis !"#"$, this definition approaches two sides where the
first approach defines satisfaction as a final situation or as end'state resulting from the consumption e#perience and the second approach emphasizes the perceptual, evaluative and psychological process that contributes to satisfaction!. According to H&llensen !"#"$ , service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may no t be tied to a physical product. (ervices are a deed by one party for another. (ervices are perishable they can!t be stored. (ervices often have to produce in the presence of the customer. According to Cra)ens !""'$ , quality means a products ability to satisfy a customer!s needs or requirements.
According to %eller, Lane et- al !""($ , quality is the totality of features and characteristics of a product or services that bear on its ability to satisfy stated or implied needs. This is clearly a customer centered definition. Improving quality, for many reasons, most organization is consistently striving to improve the quality of their products or services competitive pressures, complaints from clients or consumer, professionalism and the desire to increase sales or mar"ets share. All have a potential for investigating quality improvements and research and development competitors, customer and employees. )esearch and development involves e#ploring new different designs for products or services or new different equipment, material, and process, methods or pac"aging that have the potential for yielding quality improvements. Competitors are often sources for quality improvements, although at first glance it may seem unethical to adopt anther firms ideas. Olsen et al- !"".$ , service quality is a factor used to measure how well
services actually performed compared to customer e#pectations Naee/ 0 Sai1 !""'$, e #cellent service quality will result in a high level of
customer satisfaction. %ee et al- !""'$, customers! perception of service delivery and quality can
have an impact on the long term profits of an organization. According to Peter et al-!""2$ one of the most important and comple# decisions a firm has to ma"e relates to pricing its products and services. If consumers or organizational buyers perceive a price to be too high, they may purchase competitive brands or substitute products, leading to a loss of sales and profits of the firm. If the price
is too low, sales might increase, but profitability may suffer. Thus, pricing decisions must be given careful consideration when affirm is introducing a new product or planning a short * or long * term price change. According to 3& !"".$, place is concerned w+ getting the right product to the target mar"et!s place. It includes company, activities that ma"e the product conveniently available to the mar"et consistent w+ their purchasing patterns. According to Ar/str&n* and %&tler !""4$ , this mar"eting i# stands for the company!s activities, it includes the various underta"es to ma"e product accessible and available to target customers. The company must identify, recruit and ma"e various mar"eting techniques so that its product and services are efficiently supplied to the target mar"et. According to Walts W, et- al-!"".$ , promotion is refers to sales promotion which is one type of mar"eting communication and consist of short * term incentives to encourage purchase or sales of a product or services. Although advertising is designed to build long term brand awareness, sales promotion is primarily focused on creating actions. According to 3&!""($ , promotion is concerned w+ getting the right product+services. It means the activities that communicate the merits of the product and persuade target consumers to buy it. It is also used to build and improve consumer demand. Advertising is one of the methods to promote products+services.it is any paid
Su//ati&n
The related literature and studies discussed related information to the present studies in Customers! (atisfaction on the (ervices -ffered by the $uneral arlors. The present study have a similarity to the related literature w+c included product+service, price, place, and promotion. There are also similarities with the related studies in terms of customers! satisfaction in rendering services. In the study of Palentin&s and Vas5ue6 !""7, entitled / Customer (atisfaction on the roduct and (ervices -f Aqua (oft )efilling (tation in the oblacion area of ajayjay, 0aguna1. According to this study, the following findings were revealed that their customers are very satisfied w+ the free delivering services provided by the refilling station as it delivers the item fast and accurately. And the study of Ara8a and Mend&6a !""7$, other related study entitled / Customer (atisfaction on il" roducts produced by earls C in 0ucban, 2uezon1- According to this study, the findings revealed that the respondents! responses are very satisfied in the unit price and only satisfied in the competitiveness. eaning, they have to be more competitive regarding the price. The average ean is 3.34 w+c is satisfied scale.
C&nce9tual Fra/e:&rk
5ased on the research to be conducted, the research paradigm and conceptual framewor" was made to illustrate the concept of the study in the /Customers! (atisfaction on the services offered by the $uneral arlors in Tag"awayan, 2uezon1. The research paradigm shows the relationship between independent variables and the dependent variables. The independent variables include the demographic profile of all customers of $uneral arlors in terms of age, gender, civil status, occupation , and family income. The dependent variables include the customers! satisfaction in terms of their services, price, place, promotion and personnel job performance .
C&nce9tual Paradi*/
Customers! (atisfaction on the (ervices -ffered by the $uneral arlors in Tag"awayan, 2uezon
INDEPENDENT VARIA;LES
#- Cust&/ers Pr&1ile
DEPENDENT VARIA;LES
#-Cust&/ers< Satis1acti&n
6.6. Age
6.6. roduct+services
6.7. 8ender
6.7. rice
6.3. Civil (tatus
6.3. lace
6.4. -ccupation
6.4. romotion
6.9. onthly Income
6.9. ersonnel
!- Ser)ices O11ered
!- Si*ni1icant relati&ns=i9
7.7. :mbalming 7.3. ;isitation+;iewing 7.4. 5urial
Fi*ure #- S=&:s t=e C&nce9tual Paradi*/ &1 t=e Stud8
