Customer Satisfaction and Loyalty: Research Analysis for RES500, 2019

This assignment analyzes a research article examining the impact of customer satisfaction on customer loyalty within the banking industry in Botswana. The study explores key concepts such as customer loyalty, satisfaction, and moderating factors like demographics and income. It applies the Expectation-confirmation theory and the Theory of Planned Behavior to explain the relationship between customer satisfaction and repurchase intentions. The research tests hypotheses relating customer satisfaction and loyalty, including the influence of demographic variables. The methodology involves a survey of 44 respondents, emphasizing ethical considerations such as informed consent, voluntary participation, anonymity, and data security. The assignment also addresses ethical issues in research, the role of research ethics and ethical codes of conduct.

Running Head: Business Research Methodology 1
Business research Methodology

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1. Key concepts discussed in the article
In this research the authors evaluate whether customer satisfaction has an impact on
the loyalty of customers. The researchers have tested this question in the context of the
banking industry in Botswana. Some of the key concepts that were discussed in the article
were customer loyalty and satisfaction. Along with studying the relationship between these
two the study also analyses the moderating impact that different factors like demographic,
income, age and educational qualification can have on the relationship between the two.
2. The theories that underline the research
Some of the theories that describe the relation between loyalty and satisfaction of
customers are used in this research. One of the theories used in this regards is Expectation-
confirmation theory.
According to this theory the customer has in his or her mind some expectations about
the product or service before purchasing the same. The customer compares the outcome from
the use of the product or service with the pre-held expectations. If there is a confirmation or
match between the two then it will lead to customer satisfaction which will ultimately lead to
the intention of repurchasing the product or service.
The second theory used was the along with its extended
version referred to as the “The Theory of Planned Behaviour”. The theory assumes human
beings to be rational and it also assumes that human beings will consider the result of their
actions before taking the decision of engaging in any future behaviour. This theory too leads
to the conclusion that satisfied customers have a higher intension to repurchase a certain
product or service.

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3. Comparing theory with Hypothesis
In any research there is a difference between theory and hypothesis. Hypothesis is the
assumption that is made by the researcher before the research. The researcher aims to test the
hypothesis through the research and either prove or disprove the same (Toledo, Flikkema &
Toledo-Pereyra, 2011). On the other hand theory is an attempt to explain a phenomenon
supported by data.
The hypothesis tested in this research were
1. Customer satisfaction is directly proportional to loyalty of customers. That is increase
in Customer satisfaction will lead to an increase in customer loyalty
2. Variables like Gender, income, age and education influences the relation that
customer satisfaction has on customer loyalty
4.
1. The independent variables are normative belief, control belief, belief strength,
motivation to comply, belief evaluation and perceived power.
2. Consumer loyalty is a dependent variable
3.
 Strength of belief and its evaluation affects the attitude.
 Intention to perform certain behaviour is dependent on perceived control, attitude and
subjective norm.
5.
As part of this research the researchers conducted a survey on 44 sample respondents.
The respondents were selected on the basis of simple random sampling. Before conducting
the survey however, it is important to ensure that there is informed consent to the survey and

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the use of demographic data by the respondents. Therefore before a certain individual who is
part of the sample population is asked questions related to the survey, it is important to
explain to him or her about the purpose of the survey (Miller, Birch, Mauthner & Jessop,
2012). It is also important to give him or her choice to opt out of the survey or any particular
question that he or she does not wish to answer. It is also necessary that the participant is
made to sign a form whereby he or she declares that the participation in the survey is
voluntary and not by force (Resnik, 2011).
In order to ensure that the research does not violate privacy of the respondents it is necessary
that all responses are made anonymous. The responses should additionally be stored in safe
vaults and accessed only by authorised representatives. In no way should the research results
be used for any other purpose other than the intended research.

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References
Miller, T., Birch, M., Mauthner, M., & Jessop, J. (Eds.). (2012). Ethics in qualitative
research. Berlin: Sage.
Resnik, D. B. (2011). What is ethics in research & why is it important. National Institute of
Environmental Health Sciences, 1(10), 49-70.
Toledo, A. H., Flikkema, R., & Toledo-Pereyra, L. H. (2011). Developing the research
hypothesis. Journal of Investigative Surgery, 24(5), 191-194.