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isfaction and loyalty differed. And it varied between a low contact and a high contact service. For a low contact service (. car repair), technical quality was needed to first obtain satisfaction, and then functional quality was needed to drive loyalty beyond satisfaction. The converse was the case for a high contact (. health care) service. This pattern of findings should guide managers in designing satisfaction and loyalty measurement research in their particular firms. The analysis we employed can also serve as a prototype. Managers can analyze the satisfaction and loyalty data to identify whether the technical or the functional quality improvement is the critical need for their firms at a particular juncture in their service operations. This analysis should help guide a service firm’s investment in appropriate quality initiatives. Satisfied customers are the start of your loyalty campaign not the end Here’s a dilemma for managers. Even when your customers say they’re satisfied they still switch to other suppliers. What do these consumers want? Blood? We go to great lengths making sure we have satisfied customers and they reward our efforts by switching to our petitor! The truth is what we’ve always suspected. Satisfied customers aren’t necessarily loyal customers. Indeed loyalty requires a mitment from the customer that mere satisfaction cannot bring. Mittel and Lassar consider this dilemma by looking at whether the same factors influence loyalty as influence satisfaction. They confirm that customers “… who report a high satisfaction rating still possess a predisposition to switch service suppliers.” And we also see that (not surprisingly) dissatisfied customers will definitely switch so you can’t ignore satisfaction. But Mittel and Lassar’s most important finding is that the “type” of quality affecting satisfaction differs from that affecting loyalty. If satisfaction follows from functional quality (empathy, responsiveness, assurance) then loyalty es from technical quality (reliability). Similarly satisfaction derived from technical quality means loyalty results from functional quality. The implications of these findings are enormous. First it tells us that customer satisfaction measures are inadequate on their own and need supplementing by a measure of loyalty (in this study the propensity to switch supplier). And secondly it means that we cannot focus on those elements of quality creating satisfaction because they don’t encourage loyalty. The findings provide clarity – and answer the switching dilemma – but they make service managers’ job harder still. In the spirit of this discovery I intend to set out how managers should respond to Mittel and Lassar’s important discovery. And, in doing so, I shall provide some guidance for service improvements leading to loyalty: (1) The first task of service managers is to understand what kind of service they provide. Is it a “credence” service where functional quality determines satisfaction or an “experience” service where technical quality matters? Any quality strategy must start from this point. (2) Next the service manager must establish the basic requisites of customer satisfaction. W There’s no use focusing on loyalty if you’ve got unhappy customers. We must identify and eliminate the causes of dissatisfaction and stress improvements in areas that drive customer satisfaction. If it’s functional quality then concentrate on customer care, ambience, convenience and responsiveness. If it’s technical petence that matters recruit trained staff and make sure they deliver high quality work. Borrow ideas from product quality improveme