CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

Employee satisfaction has been positively correlated to service quality, which was then linked to

increased customer satisfaction. Customer satisfaction has been linked to the financial performance

of the company, suggesting that employee satisfaction is linked to financial performance of the

company. Thus, some researches have shown that satisfied employees could have a positive impact

on the company’s revenues and profits. Therefore, understanding the antecedents and

organizational factors that influence employee and customer satisfaction, both positively and

negatively, is critical to operational effectiveness. For this reason, customer satisfaction is one of

the most studied customer reaction variable. Critical organizational implications include increased

customer retention, performance and market share. Highly satisfied cu