n Management Dynamics : Journal of the Southern African Institute for Management Scientists - The relationship between customer satisfaction and loyalty : an application of the American Customer Satisfaction Index in the South African fast food industry

Volume 15, Issue 2
  • ISSN : 1019-567X



Customer retention has become a major concern for many businesses. Measures such as satisfaction, loyalty and commitment have, over time, been operationalised with the purpose of enhancing customer retention. A model that has been used extensively to measure satisfaction and loyalty is the American Customer Satisfaction Index (ACSI). This study investigates the reliability of the ACSI for South Africa and reports on the empirical findings in respect of the relationships between various dimensions in the ACSI model for fast food retailers in South Africa. No research using the ACSI has been published in any South African academic journal as yet.

The respondents in this empirical study were 2000 consumers drawn randomly from the seven major metropolitan areas of South Africa. The respondents were required to respond to items from the ACSI scales in relation to the fast food industry. The fast-food industry as a whole and seven individual fast food retailers are the focal points of this study. The strengths of various relationships, such as the relationship between customer satisfaction and customer loyalty and the relationship between perceived value and customer satisfaction, were examined.

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