Abstract
M.Com. (Business Management)
In the light of the ever increasing competition characterising today's global economy (Dale, 1995:
48) and the drastic changes brought about by the new South Africa, local businesses would have to
make a conscious effort to prosper in future. Research organisations accustomed to being
subsidised by the state have a particular challenge to face in the new South Africa where all
subsidies are being shrunk. The reason for this is political pressure to redirect state spending
towards social upliftment programmes.
Quality and customer satisfaction are important topics that get attention world-wide. Well managed
service organisations have the following common virtues [Kotler & Armstrong, 1991:
610]:
• A history of top management commitment to quality;
• High standards for service quality are set;
• Service performance is well monitored - both their own and that of competitors;
• Employees as well as customers are being satisfied.
The distinction between service quality and customer satisfaction is that, perceived service quality is
a global judgement relating to the superiority of the service, whereas satisfaction is related to a
specific transaction [Parasuraman, et al., 1988: 16]. Incidents of satisfaction over time, result in
perceptions of service quality. According to Cronin & Taylor [1992: 65] perceived quality may
play a bigger role (in comparison with satisfaction) in customer-intimate companies who need to do
more than simply meet customers' "minimum requirements". Customer-intimate companies (for
example research organisations) continually tailor and shape products and services to fit an
increasingly fine definition of the customer [Treacy &Wiersema, 1993: 87]...