Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2018 Exploring Satisfaction and Retention Strategies for Generation Y Customers Edmund Ehichioya Otaigbe Walden University Follow this and additional works at: https://scholarworks.waldenu.edu/dissertations Part of the Advertising and Promotion Management Commons, Marketing Commons, and the Social and Behavioral Sciences Commons This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact [email protected]. Walden University College of Management and Technology This is to certify that the doctoral study by Edmund Otaigbe has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Dr. Christopher Beehner, Committee Chairperson, Doctor of Business Administration Faculty Dr. Frederick Nwosu, Committee Member, Doctor of Business Administration Faculty Dr. Gergana Velkova, University Reviewer, Doctor of Business Administration Faculty Chief Academic Officer Eric Riedel, Ph.D. Walden University 2018 Abstract Exploring Satisfaction and Retention Strategies for Generation Y Customers by Edmund Ehichioya Otaigbe MBA, University of Benin, 2005 BEng, Federal University of Technology, Akure, 1999 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University April 2018 Abstract Firms in the service industry have experienced a 15-30% drop in customer satisfaction ratings and an estimated $10 billion annually due to the unpredictable tendencies of one of the most significant and fastest growing consumer segments in the marketplace, Generation Y customers. The distinctive behavior of this sizeable generational cohort may be reshaping the business landscape of the 21st century regarding how consumers will relate to service providers in the future. Using the theory of customer satisfaction management system, the purpose of this multiple case study was to explore the customer satisfaction strategies that business leaders in southern Nigeria use to retain Generation Y customers. The participants included business leaders who have successfully retained Generation Y customers by applying customer satisfaction business strategies in Akwa Ibom state, Nigeria. The data were collected through semistructured one-on-one interviews with 3 business leaders from different sectors of the service industry. To enhance the credibility and trustworthiness of the interpretations, methodological triangulation of the data sources and member checking were used. The process of data analysis included word frequency analysis, coding of related phrases, identification of patterns, and generation of themes around the codes. The themes that emerged from the study were (a) positive brand image creation, (b) social media as an enabler, and (c) quality service and timely delivery. This study may create awareness for business leaders on how to satisfy and retain Generation Y customers. This awareness has the potential of promoting positive social change among business leaders because of the significant contribution profitable businesses bring to the societies and communities. Exploring Satisfaction and Retention Strategies for Generation Y Customers by Edmund Ehichioya Otaigbe MBA, University of Benin, 2005 BEng, Federal University of Technology, Akure, 1999 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University April 2018 Dedication I dedicate this study to the Almighty God who has been very generous with all the graces required to complete this project. To my support system anchored by dear wife, Bosede, and our adorable children Ose, Ehi, Deba, and Ik, for your encouragement and understanding especially for the long hours and days I have deprived you all my presence in pursuit of this goal. I also dedicate this study to all researchers, business leaders and institutions that are committed to making a positive change in the world by continually seeking out business problems and helping to find solutions. Acknowledgments I thank my Committee Chair, Dr. Christopher Beehner, for his guidance and encouragement that saw me to the finish line. I also thank my previous Chair, Dr. Charlene Dunfee for starting the journey with me. I wish to appreciate my second committee member (SCM), Dr. Frederick Nwosu, and my university research reviewer (URR), Dr. Gergana Velkova, for the invaluable feedback and direction that enriched my academic experience. I will also like to thank Dr. Susan Davis, for her excellent leadership as the Program Director for the DBA program at Walden University. A special thank-you to all my other instructors, faculty staff, classmates and the entire Walden community for helping to create a perfect ecosystem for learning and development. I also acknowledge and thank my extended family members, mentors and friends for their support and encouragement. Table of Contents Section 1: Foundation of the Study .................................................................................. 1 Background of the Problem ....................................................................................... 1 Problem Statement ..................................................................................................... 3 Purpose Statement ..................................................................................................... 3 Nature of the Study .................................................................................................... 4 Research Question ..................................................................................................... 5 Interview Questions ............................................................................................. 5 Conceptual Framework .............................................................................................. 6 Operational Definitions .............................................................................................. 7 Assumptions, Limitations, and Delimitations ............................................................. 8 Assumptions ........................................................................................................ 8 Limitations .......................................................................................................... 8 Delimitations ....................................................................................................... 9 Significance of the Study ........................................................................................... 9 Value of the Study to Businesses ......................................................................... 9 Contribution to Business Practice ....................................................................... 10 Implications for Social Change .......................................................................... 10 A Review of the Professional and Academic Literature............................................ 10 Customer Satisfaction Management System ....................................................... 13 Supporting and Rival Theories ........................................................................... 16 Customer Satisfaction and its Dimensions .......................................................... 19 i Service Quality and Customer Satisfaction ......................................................... 25 Service Quality and Market Segmentation.......................................................... 26 Generation Y Purchase Behavior........................................................................ 27 Customer Engagement through Satisfaction ....................................................... 30 Customer Satisfaction through Loyalty Programs ............................................... 33 Customer Retention ........................................................................................... 35 Gap in Literature to Improve Business ............................................................... 39 Transition ................................................................................................................ 40 Section 2: The Project ................................................................................................... 41 Purpose Statement ................................................................................................... 41 Role of the Researcher ............................................................................................. 42 Participants .............................................................................................................. 43 Research Method and Design ................................................................................... 45 Research Method ............................................................................................... 45 Research Design ................................................................................................ 46 Population and Sampling ......................................................................................... 48 Ethical Research .....................................................................................................