Experience On Customers Assignment Help

The modern business environment is dynamic and characterised by intense competition forcing businesses to formulate strategies geared towards customer satisfaction, retention, repeated purchasing and loyalty.

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This is a solution of Experience On Customers Assignment Help in which we discuss businesses to formulate strategies geared towards customer satisfaction.


The modern business environment is dynamic and characterised by intense competition forcing businesses to formulate strategies geared towards customer satisfaction, retention, repeated purchasing and loyalty. This research paper aimed at investing the impacts of customer experience on customer’s recommendation and repeat purchasing in the Chinese electronic industry.Based on the literature review regarding the customer experience, a good customer experience is vital in determining the company’s profitability. The four key theories of consumer behaviour discussed under the literature review in relation to customer experience includes the theory of buyer behaviour, theory of reasoned action, theory of planned action and the theory of trying.

According to the theory of buyer behaviour, environmental factors that influence consumer choice include marketing environment, social environment and the psychological environment. According to the theory of reasoned action, individuals’ behaviours are approximated to be equal to the behavioural intentions derived from consumers’ attitudes towards the purchase of the product.

Based on the theory of planned behaviour, the creation of a perceived behavioural control depends on the combination of perceived present components that influence consumer behaviour. The theory of trying that consumer’s intention to try is determined by the subjective norm, expectation of success and attitude towards the service or product. However, the existing literature does not conclusively cover the variables of customer experience.

To achieve the core objective of this research, the researcher tested the formulated hypotheses based on the literature using descriptive statistics. Based on the research findings, a good customer experience on customer’s recommendation and repeat purchase increases brand reliability, increases the endowment effect and reduces the customer switching.

 Research Background

The modern business environment is dynamic and characterised by intense competition forcing businesses to formulate strategies geared towards customer satisfaction, retention, repeated purchasing and loyalty (Podolny, 2010). Failure to retain customers can lead to reduced business revenue and in some instances it can result in the collapse of the enterprise.

According to Hosseini, Maleki & Gholamian (2010), improving customer experience can result in recommendations and repeated purchasing which impact positively on the company’s profitability. Alrubaiee & Al-Nazer (2010) postulate that in the Chinese electronic market, customers have a preference to high quality and affordability.

However, quality and affordable prices are not the only factors determining customer retention, loyalty and repeated purchasing. Zhang, Dixit & Friedmann (2010) further argue that more research should be conducted to determine the critical elements of customer experience.  According to Prentice (2013), customer retention and repeated purchasing result from customer satisfaction.

Mandhachitara & Poolthong (2011) provide six critical reasons why customer satisfaction is vital to the business growth. Firstly, consumer satisfaction is a significant indicator of the customer’s loyalty, repurchase intentions and recommendations.

Secondly, customer satisfaction is critical in reducing the customers’ churn. Thirdly, customer satisfaction is essential for the business in realising the customer’s lifetime value. Fourthly, customer satisfaction is vital in reducing the negative word of mouth which can be very destructive to the business’s reputation. Fifthly, customer satisfaction is essential because it is easier to retain the existing customers than the new ones.

Lastly, customer satisfaction is an important pointer of differentiation. Based on the Mandhachitara & Poolthong (2011)’s arguments regarding customer satisfaction, it implies that customer experience plays a critical role in repeated purchasing and recommendations.

Deng et al. (2010) note that the Chinese electronic industry is a competitive marketplace where enterprises are competing for customers. Liu, Guo & Lee (2011) further argue that customer satisfaction is considered as a significant differentiator. Therefore, to succeed in the competitive marketplace, a business must consider the positive customer experience as the key element in its strategies.

As noted earlier, quality and affordable prices will not necessarily lead to repurchase intentions and recommendations if the customer experience is detrimental (Kassim & Asiah Abdullah, 2010). In the industry where businesses produce similar high-quality products, good customer experience is the major factor that can lead to high sales. Hanif, Hafeez & Riaz (2010) expound that offering an amazing customer experience can create a great customer advocacy and satisfaction. Customer advocacy is an essential ingredient of repurchasing intentions and customer recommendations (Williams & Naumann, 2011).

The research conducted by Eid (2011) highlights three key steps that can lead to customer satisfaction, retention, repeated purchasing and recommendations. Firstly, firms should adopt the customer loyalty programmes in which customers are awarded for their repeated purchasing. The rewards are also awarded to those customers who recommend one or more new customers to the company (Eid, 2011). Secondly, some firms regularly send newsletter emails to their customers to keep them updated.

Thirdly, a firm can surprise and delight its customers by giving unexpected offers. Majorly, this is aimed at creating a good customer experience that can lead to customer loyalty, repeated purchasing intentions and recommendations. Ideally, organisations must create a conducive environment for customers to feel the value of their money (Fang, Chiu & Wang, 2011).

Zhang, Agarwal & Lucas (2011) note that the Chinese Electronic Industry has experienced tremendous growth in the past decade. For instance, the electronic market has grown three times faster compared to the country’s GDP (Lee, Xiang & Kim, 2011). The rapid growth in the Chinese electronic industry has resulted from the economic liberalisation policies (Breznitz & Murphree, 2011). For instance, in the years 2005, the Chinese electronic sector contributed about 7% of the total gross domestic product (GDP), which represented 16.60% of the country’s total economic growth (Berger & Martin, 2011).

The literature review further indicates that in the year 2011, China was ranked as the world’s leading market for the personal computers (PCs) (Lee, Xiang & Kim, 2011). Some of the leading electronic firms in the Chinese market includes Lenovo, Huawei, Panda Electronics, TCL and Haier to name but a few. The leading electronic products in the Chinese market include computer-related goods, electronic parts and the software industry (Yang, Lin & Ma, 2010). However, the success of the electrical industry is majorly reliant on the willingness of the customers to consume its products.

The increased willingness to purchase the electronic products is based on customer satisfaction, loyalty, repurchase intentions and customer recommendations (Har Lee, Cyril Eze & Oly Ndubisi, 2011). This research project, therefore, undertakes to investigate the effects of customer experience on customers’ recommendation and repeat purchases in the Chinese electronics industry based on specifically attributable components such as endowment effect, customer switching and loyalty.

Based on the existing literature, little has been established regarding the effect of customer experience on customer’s recommendation and repeat purchases. To address the existing gap, this dissertation captures the impact of customer experience on customers’ recommendation and repeat purchases on customer endowment, customer switching, brand reliability and loyalty.

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