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An empirical study of externality and customer satisfaction

In general, customer satisfaction is derived from the quality of product. Hundreds of studies examine the relationship between the performance of product attributes and customer satisfaction. | An empirical study of externality and customer satisfaction International Journal of Management IJM Volume 10 Issue 2 March-April 2019 pp. 52-62 Article ID IJM_10_02_006 Available online at http www.iaeme.com ijm issues.asp JType IJM amp VType 10 amp IType 2 Journal Impact Factor 2019 9.6780 Calculated by GISI www.jifactor.com ISSN Print 0976-6502 and ISSN Online 0976-6510 IAEME Publication AN EMPIRICAL STUDY OF EXTERNALITY AND CUSTOMER SATISFACTION Claire Y.T. Ho Ph.D. Student Department of Business Administration Nanhua University Taiwan Miao-Shen Chen Chair Professor Department of Business Administration Nanhua University Taiwan Correspondence Author Email claire@mail.dyu.edu.tw ABSTRACT In general customer satisfaction is derived from the quality of product. Hundreds of studies examine the relationship between the performance of product attributes and customer satisfaction. Instead of conducting an analysis on the influence of attribute performances on customer satisfaction this study pays close attention to the influences of externality on customer satisfaction in the case of the tourism industry. We examine the externality coming from companion s behavior on tourist satisfaction in tour groups. The regression results show that companion s behavior significantly influence tourist satisfaction no matter the satisfaction is measured from the aspect of tour schedule or tour escort. By encouraging or discouraging some companions customer can enhance tourist satisfaction. In addition gender and companions will cause different regression results. This reminds us to take consideration of the individual difference when taking actions to enhance satisfaction. These results imply customer satisfaction is not only determined by the performance of product attributes but also depends on externality. Controlling the influence of externality is an alternative to enhance satisfaction. Keywords customer satisfaction tourism externality companion s behavior quality .