CHAPTER 1

Title: Oslob.com Internet Café: Customers’ Satisfaction Level and Rendered Services in

Meeting Business’ Success

• Introduction

Customer satisfaction (CSAT more correctly CSat) is a term frequently used

in marketing. It is a measure of how products and services supplied by company meet

or surpass customer expectation. Customer satisfaction information helps companies

to evaluate their ability in meeting customers’ needs and expectations effectively

(Zeithaml et al, 2009).

Customer satisfaction helps companies to analyze the performance of an

offering to customers in order to identify areas for improvements as well as what

areas customers consider to be very important to them. Companies can predict

customer retention and loyalty as well as organizational profitability through

satisfaction surveys (Zeithaml et al, 2009).

As markets shrink, companies are struggling to boost customer satisfaction

and keep their current customers rather than adding resources in order to chase new

potential customers. Measurement of customer satisfaction is now the main focus of

many companies. Today’s companies can recognize that the new global economy has

changed things forever. Global competition is increasing and markets are now

crowded with little product differentiation.

1
 Customer satisfaction surveys can provide organization with the necessary

information and tools to be put into action. By doing this knowledge, they can hold

on to the customers they have and will be able to attract new customers.

2
• Conceptual Framework

This study is supported by Hokanson (1995). According to him, there are

many factors that can affect customer satisfaction. These factors include friendly

employees, courteous employees, knowledgeable employees, helpful employees,

accuracy of billing, billing timeliness, competitive pricing, service quality, good

value, billing clarity and quick service. This is shown in the figure below:

Friendly Courteous
Employees Employees

Helpful Knowledgeable
Employees Employees

OVERALL

CUSTOMER
Quick Accuracy of
Service
SATISFACTION
Billing

Billing
Billing
Timeliness
Clarity

Good Competitive
Value Pricing
Service
Quality

Figure 1.Hokanson model.In order to achieve customer satisfaction, organizations

must be able to satisfy their customers’ needs and wants (La Barbera and
Mazursky, 1983). Customers’ needs state the felt deprivation of a customer
(Kotler, 2000). Whereas customers’ wants, according to Kotler (2000) refer to
“the form taken by human needs as they are shaped by culture and individual
personality.

3
• Problem: What is the implication of the satisfaction rate of customer satisfaction

in Oslob.com Internet Café?

• Statement: There is a need to respond to customers’ expectations to meet their

satisfaction.

This study aims to have a deeper understanding on customer satisfaction and

provide the necessary information with respect to the following questions:

• Research Questions:

What makes every individual or group to stay engage in business?

Why do we need to satisfy customers?

How will you respond to customers’ needs?

4
• Significance of the Study

This study is of great importance today and expected to be even more

important in the future. The research on customer satisfaction is increasing along

with the value of good quality services. This study has practical and economic

importance as the growth of service in the world’s developed economies

continues to dominate. Today companies need to excel in customer satisfaction in

order to gain business growth, positive reputation and increase business profit.

The knowledge obtained from this research is beneficial to the following:

The business owners are the primary benefactors of this study for they will

gain additional knowledge on their strengths and weaknesses. This will also raise

their awareness on how to provide quality services to satisfy customers.

The customers will also benefit the study for they are the users of the

internet café. They are the one who will experience the services of the business

establishment.

The future researchers will also benefit in this study for they will get

additional information or knowledge that could help them predict customer

loyalty in the future.

5
 • Scope and Delimitation

This study was limited to one internet café located in Poblacion,Oslob,Cebu. Only 100

customers/internet users were used in the study. Data collection for customer satisfaction

occurred last July 14, 2016.

This study will examine the customer’s perception with respect to

customer satisfaction of the internet café.

6
• Definition of Terms

• Customers – are parties that receive or consume products (good or

services) and has the ability to choose between different products and

supplies based on business dictionary. They are the respondents of

the study.

• Customer satisfaction – is the degree of satisfaction provided by the

goods or services of a company as measured by the number of repeat

customers as stated in the business dictionary. It is the main focus of

the study.

• Internet Café - also known as a cybercafé, is a place which provides

Internet access to the public, usually for a fee. It is chosen as the

business firm that will be our basis of the study.

• Customer Service – activities undertaken by a business to optimize,

ease, and enhance a customer experience throughout the sales,

product use, repeat business, and service and support stages of

interaction, usually supported by staff training, complaint resolution,

and loyalty development programs aimed to result in strong customer

relationships as defined in business dictionary. It is one of the

subtopics of the study.

7
• Employees – are persons hired by a business to work for wages or

salary. They are the ones whom the researchers ask for assistance in

conducting the study.

• Profit – income received for entrepreneurial skills and risk taking,

calculated by subtracting all of a firm’s explicit and implicit cost

from its total revenues.

• Intangible goods – non-physical assets of value such as contracts,

franchise ownership, exclusive licenses or permits, intellectual

property and goodwill or going-value concern, which are only carried

on a balance sheet if a business has paid to acquire them.

8
 CHAPTER 2

Review of Related Literatures

2.1 Theories of Customer Satisfaction

As we all know, customer satisfaction is the top most priority of every

company. It is necessary for companies to know and understand the theory of satisfaction

in order to improve it and exceed the expectations of the customers. Ever the last

decades, customer satisfaction has become very important for companies which lead to

investing heavily in improving their services that would contribute to a strong customer’s

satisfaction such as service quality and customer service (Hill, 1996:1).

Whether the buyer is satisfied after a purchase depends on the performance of the

others in relation to the buyer’s buyer satisfactions. In general, satisfaction is a person’s

feelings that can be pleasure or disappointment resulting from comparing a service or

product’s perceived performance or outcome in relation to the buyer’s expectations

(Kotler, 2000:36).

Good customer value can be achieved only when service quality, product quality

and the value based prices exceed the customer satisfaction. If one of there is neglected,

the customer satisfaction will suffer tremendous setback. Even if price and the product

9
are good but the service is bad, the entire “image” of the company will be bad and the

customer will certainly not be happy (McNeil, Crotts. 2006:38).

The perceived service quality model describes what customers perceive as a

quality and not on what the companies as a good quality (Gronroos. 2000:67).

Theories about the customer describe that the buying behavior has a strong

influence on the quality model. According to the perceived quality model, the quality of

service is as perceived by the customer. It is the result of a comparison between

expectations of the customer and his/her experiences. In a situation where the

experienced quality exceeds the expected quality, the total perceived can be said to be

positive. If the expectations are not met, the total perceived quality is considered to be

very low and the customer satisfaction is then negative (McNeil. Crotts. 2006:39-40).

2.2 Total Quality Management

Total Quality Management (TQM) is widely use by companies on order to

increase customer’s satisfaction. Using this approach is considered as constantly

improving quality in areas of an organization. The increase in service or product quality

has a good connection to customer satisfaction and the organization profit. The total

quality management does not only require that things should be done right, but also to do

the right things right (Gummeson. 2008:23). The problem with the total quality

management is that some organization focus on improving the quality of services and

10
products, and ignores the customers’ needs and wants. To overcome the problem

associated with this companies alternatively, use the Return on Quality (ROQ) approach

(Kotler et al. 2006, 147-148).

Businesses should increase quality, but only when is considered to be profitable.

Thus, it is important for businesses to know when to start investing in quality and when

to stop. Quality improvement has to be seen as an investment, in order to measure the

profitability. The improvement expenditures should be considered with all other

expenditures. An ROQ approach helps management to decide the right time to improved

quality and when it is unprofitable. It also shows how much should be expended. ROQ

approach also considers improvement costs equally with other cost (Rus, Zahaik, and

Keiningham, 1995).

2.3 Customer Relationship Management (CRM)

Customer Relationship Management (CRM) is about building a strong relationship

between two parties. Not only the classical relationship that exist between customers and

suppliers, a company can build a relationship with its customers, dissatisfied customers,

employees, suppliers, distributors, competitors/or intermediaries. It is of great importance

for companies to have a relationship because it costs more than six times more to attain

new customers than to retain existing ones and it is related to profitability (Gummeson,

2008.276).

11
 The general condition for entering a relationship with a customer is satisfaction

and satisfied customers will tell their family and friends, customers’ relationship help

companies to find new customers. Customer Relationship Management (CRM) considers

all aspects not only focus on the customers; for example satisfied employees like to work

well, which will carry over to customer. Satisfied employees help the company to achieve

customer satisfaction, which leads to strong and long lasting relationships which would

help increase the profitability of a business in a long run (Gronroos, 2000:130,131,147).

2.4 Measuring Customers’ Satisfaction

Customers’ satisfaction is measured often by determining the experiences and

expectations of customers. However, it is difficult because the products, customers’

feelings as well as perception of equity have effects on satisfaction. Products and services

include some intangible features such as ambiance of a store. In addition, peoples’ moods

and their feelings play a big role on how satisfied they are when an individual is very

happy, he/she reacts positively to a product or service (Ftizsimmons 1994:191).

Customers are likely to take a partial responsibility for the outcome e,q. buying

shirts online with the assumption that it would have the same size as another model of

the same brand of the shirt. However, if the size is not the same, the consumers feel at

fault. This is as a result of equity perception or fairness effects on satisfaction: consumers

12
always compare themselves with other consumers in order to know if they pay for

(Zeithaml. Bitner, 2000:76-77).

2.5 Voice of Customer Analysis

The Voice of Customer Analysis is a new version of Quality Function Deployment

(QFD). In order to achieve maximum customers’ satisfaction, companies need to know

and understand the requirements of customers. The requirements are categorized into

revealed, expected and the exciting ones. The first one is directly related to satisfaction.

The faster customers are served, the more satisfied they become and vice versa (Mazur,

1996).

The expected requirements are the things that are taken for granted like internet

service in a café. When there is no internet service in an internet café, customers would

surely be dissatisfied. The exciting requirements are for example a glass of wine when

you enter a boutique. Customer usually would not expect them, but they are additional

values which will result to satisfaction. The main task of QFD is to make sure that the

expected requirements fit into any pattern and shows what kind of exciting requirements

could be adopt. The Voice of Customer Analysis emphasizes on “unspoken” and

“invisible” requirements more than the QFD (Mazur, 1996).

13
 All the above mentioned three requirements where derived from the theory of

attractive quality, developed by Kano and his colleagues in 1984 (Lofgren, Witel,

2008:59). According to the theory, the revealed requirements cause dissatisfaction if they

are unavailable and satisfaction if they are. The expected line is also called “must-be”

requirements because if they are missing, the customers will be dissatisfied. However,

they don’t cause satisfaction as the “must-be” requirements are always expected to be

there. The exciting requirements are not missed if they are not available, but they satisfy

if they are and they always added value (Lofgren et. al, 2008:62).

The attributes are changing over time. For example, when the first mobile phone

with an integrated camera was developed, it was based on exciting attributes. When

consumers got used to it and it then changed to performance attribute. In the near future,

it might be common that consumers expected it to be included or otherwise they would

be dissatisfied (Lofgren et. al, 2008:62).

The different theories play important roles in customer attraction and retention, customer

satisfaction and organizational profitability. Theory on Total Quality Management gives

an assurance that every business entity could produce best quality products and services

to its respected customer. It lets them get focus on improving the quality of products and

services to the extent that it still hits profitability rate. Organizations should not only stay

focus on product or service enhancement but also must take into consideration in building

strong relationship with its employees, customers and with every individual or group that

comprises as a whole in achieving its short term and long term goals. Strong relationship

14
will be boost-up through the knowledge they’ve got from the theory on Measuring

Customer Satisfaction. Though every business could achieve customer satisfaction

through offering best quality products and services and building strong relationship with

its customers , still theory on Customer Analysis plays a vital role in the achievement of

their goals since voices of customers will give a hint on what particular attributes could

add-on to customer satisfaction.

Different theories will serve as basis in determination of the strongest and weakest areas

of the organization. It will help them improve their weaknesses and maintain or still

improve their strongest aspects to balance everything and to let business operates at its

stability rate wherein nothing is left behind. Everything must go hand in hand to achieve

harmonious organizational operation for the attainment of customer satisfaction which

will lead to organizational profitability and growth.

15
 CHAPTER 3

Methodology of the Study

The aim of the thesis is to gain a deeper understanding of the importance of customer’s

satisfaction in internet café management and measuring and developing customer service

in Oslob.com Internet Café. Considering the nature and objective of the study

quantitative research methods have been chosen for the study.

3.1 Choice of Research Method

(Quantitative Research)

This study will utilize descriptive design. Descriptive design will be used to know the

importance of customer satisfaction and determine the different factors that contributed to

business growth and development.

The reason for choosing quantitative research approach is because it is the fastest way to

receive the target answers and also to be able to present the results of the research by

using figures and in writing. Measuring the answers would be quite easy since

alternatives were given for the respondent to choose their answers. It is also easier to get

overall impressions of the answers when they measured more as numbers.

16
3.2 Questionnaires Design

The researchers use a self-made questionnaire that will be used to gather

information from the customer and has been designed in accordance in the main factors

that will help in getting the answers to the question of customer satisfaction. The total

number of questions asked was 20 and the language used in the questionnaire is English.

The questionnaire consists of three parts information and question concerning customer

satisfaction.

3.3 The Target Group/Participant

The respondents of the study will be the customers of Oslob.com Internet Café in order to

get the most reliable result of the study.

3.4 Implementation of the Research

The questionnaires were distributed on the 14th day of July,2016. A total of 100

questionnaires were randomly given to respected customers.

3.5 Validity and Reliability

In relation to the research study, questionnaire was chosen for data collection to be able

to get reliable results. The questionnaires were well-designed in cooperation with our

Business Research Instructor. The layout was simple and easy for the respondents to

17
follow and personal questions were not asked to avoid the respondents refusing to answer

the questions. In addition, the research was conducted only at Oslob.com Internet cafe

and so the findings are not applicable to the internet cafe industry. However, the findings

of the research are reliable because all of the questions were answered.

3.6 Research Environment

The study will be conducted in the Oslob.com Internet. The researchers choose the

environment because it is the most popular internet cafe in Oslob.

18
 CHAPTER 4

Data Analysis and Presentation of Data

A total of 100 questionnaires were given and answered by customers. This represents a

response rate of 100% which is significantly very good response to draw findings and

make necessary conclusions.

Location and Accessibility

14% 5% 23%

5-Highly Satisfied
4-Somewhat Satisfied
3-Neither Satisfied nor
Dissatisfied
2-Somewhat Dissatisfied
30% 1-Dissatisfied
28%

Table 1.1 Location and accessibility.

Most of the respondents represented by 29.80% are neither satisfied nor

dissatisfied. Several of them, represented by 28.40% are said to be somewhat satisfied.
Some of them, represented by 23% are said to be highly satisfied. The others are
somewhat dissatisfied, represented by 13.80% and dissatisfied represented by 5%. This
indicates that with respect to the internet café’s location and accessibility, the customers
are neither satisfied nor dissatisfied.

19
Customer Relationship

80.00%

70.00%

60.00%

50.00%

40.00% Customer
66.67% Relationship
30.00%

20.00%
33.33%
10.00%

0.00%
YES NO
Table 1.2 Customer relationship

Higher number respondents answered YES represented by 66.67% while some of them
answered NO represented by 33.33%. This implies that the staffs of Oslob.com Internet
Café have a good relationship with their customers.

20
Internet Café

53.00%

52.00%

51.00%

50.00%
52.33% Internet Cafe
49.00%

48.00%

47.00% 47.67%

46.00%

45.00%
YES NO

Table 1.3 Internet Café.

Many of the respondents answered YES represented by 52.33% while some of them
answered NO represented by 47.67%. this signifies that with regards to the terms and
conditions related to the internet café, more of the respondents or customers have a
positive feedback.

21
 Chapter 5

Summary and Conclusion

The questionnaires were distributed randomly. A total of 100 questionnaires

containing 20 questions were handed out in order to acquire data on the level of customer

satisfaction among Oslob.com Internet Cafe customers. We received back the 100

questionnaires and we believed that it was considered adequate for the results to be

reasonably reliable.

The results from returned questionnaires showed that majority of Oslob.com

Internet Cafe customers were satisfied with the said internet cafe performance. Overall,

the questionnaire shows that Oslob.com Internet Cafe's concept is working however

improvements can be made.

Based on our surveys, the customers were most satisfied with services offered by

the staff and on how they treat their customers. Customers were least satisfied with the

pricing rates they offered so they must try to lower the pricing rates so that the customers

will be satisfied regarding its affordability.

Measuring customer satisfaction was necessary because it revealed the voice of

the customer. Our research was properly done and the services they offered gave a huge

22
satisfaction to customers. Indeed, the business firm offered good services which are

reflected on the satisfaction of the customers.

Customer satisfaction does have a positive effect on an organization's

profitability. Satisfied customers form the foundation of any successful business however

dissatisfied customers can give a negative effect on the development of sustainable

business. For that reason, business firms could definitely take advantage of a proven

systematic customer satisfaction process. The challenge for a certain business firm is to

implement and secure a standardized customer satisfaction process. Customer satisfaction

is addressed as a strategic business development tool. Ultimately, it will lead to more

loyal customers and more profitable business.

Therefore, this research concludes that customers expect certain things when they

walk into a business, and those with the highest level of service will know how to

identify those expectations and meet them to the customer’s satisfaction.

Customer satisfaction is of great importance since customers are the main target

of producing products and giving services. The effort they’ve put-up would be useless if

they won’t be able to attract and retain customers. For every individual or group has

different expectations on certain things, business owners must be logically strategic to

generate ideas for the continuous engagement of everyone involved. It is always best to

put every customer as a center of every action to make them feel valued.

23
 Recommendations

This chapter aims to enhance further studies regarding customer satisfaction. In

this study, the researchers must widen their scope of study. They should not only rely on

one business firm as their basis of their study.

The researchers must think about the things they are studying and about the

methods they used to study them. In order to have a good research study, researchers

must spend the majority of their time reading papers, discussing ideas with colleagues,

writing and revising papers, staring blankly into space and come up with brilliant ideas

and implement them.

The researchers should make sure that the literature review is more than just a list

of references with a short description of each one. They can also ask for help to the

people in the certain area since it can be a good source of idea about where to look for

relevant literature.

The researchers should also consider the characteristic of the respondents. This

could include gaining an understanding of traits or behaviors, like asking them to identify

their age group or provide how many hours they spend on the internet each week.

The researchers must think of a case study research paper as a complete, in-depth

narrative about the specific properties and key characteristics of their subject of analysis

applied to the research problem.

24
 Bibliography

1. Medina, 2008, Principles of Marketing: Services, Marketing and Non-Business

Marketing, pp. 240-248. Revised Edition
2. Kotler, Keller, HoonAng, Meng Leong, Tiong Tan, Marketing Management: An
Asian Perspective: How to Develop Marketing Strategies and Plans, pp. 34-71.
Fifth Edition
3. https://www.google.com.ph/search?
q=g&oq=g&aqs=chrome..69i57j0l5.813j0j4&sourceid=chrome&ie=UTF-
8#q=customer+satisfaction
4. https://www.isixsigma.com/dictionary/voice-of-the-customer-voc/
5. Kotler, 2012, Strategic Marketing Management: Measuring Customer
Satisfaction, Volume 35. 7th Edition
6. http://www.slideshare.net/ilchyshyna/gummesson-service-marketing
7. http://www.vanhaaften.nl/images/documents/pdf/The%20Importance%20of
%20Customer%20Satisfaction%20in%20Relation%20to%20Customer
%20Loyalty%20and%20Retention.pdf
8. Hill, 2000, Handbook of Customer Satisfaction and Loyalty Measurement:
Customer Satisfaction and Retention, pp. 6-38. Reprinted, 2002
9. http://www.ijstr.org/final-print/march2012/Impact-of-Customers-Satisfaction-
And-Customers-Retention-on-Customer-Loyalty.pdf
10. https://www.researchgate.net/profile/Thomas_Baker7/publication/223027373_An
_Assessment_of_the_Relationship_Between_Service_Quality_and_Customer_Sat
isfaction_in_the_Formation_of_Consumers'_Purchase_Intentions/links/566adb7d
08ae430ab4f92a14.pdf

25