Advances in Economics and Business Vol. 5(5), pp. 246 - 255
DOI: 10.13189/aeb.2017.050502
Reprint (PDF) (806Kb)

Understanding Consumers' Satisfaction and Loyalty: A Comparative Study of Services in India and Japan

Yoshie Nagashima 1,*, Naoki Nagashima 2
1 Faculty of Business Administration, Daito Bunka University, Japan
2 Faculty of Business Administration, Toyo University, Japan


The main objective of this paper is to illustrate validity of Consumer Satisfaction (CS) and Loyalty research as an effective complement to conducting ethnographic research. More and more companies who enter foreign markets increasingly rely on ethnographic research. However, in conducting ethnographic research, field workers need to attach themselves to the local communities, and this type of research is highly elaborate and complex. This paper suggests that CS and Loyalty research is effective in understanding consumers' traits, and provides valid insight in a short period of time. In our study, we take up eat-out experiences at restaurants and coffee shop chains. Our findings on urban middle-class consumers in two Asian countries, India and Japan, indicate 1) "Expectancy-disconfirmation model" and "Loyalty ladder" do not apply to Indian consumers, while they apply well to the Japanese counterparts, 2) different attributes are important in terms of impact on CS between the two countries, and 3) an improved CS is more likely to lead to positive word of mouth than repeated usage of the service in India, and the reverse holds for Japan. The findings from this study indicate validity of the method and framework of research conducted.

Consumer Behavior, Marketing, Service Business, India, Consumer Satisfaction, Loyalty

Cite this paper
Yoshie Nagashima , Naoki Nagashima . "Understanding Consumers' Satisfaction and Loyalty: A Comparative Study of Services in India and Japan." Advances in Economics and Business 5.5 (2017) 246 - 255. doi: 10.13189/aeb.2017.050502.