Managing newness of SME startups for increasing customer satisfaction and loyalty

Abstract

The purpose of this study is to identify the relationship of assets and liabilities of newness with the variables of consumer behavior, customer satisfaction and loyalty. The evidence has been drawn from the field survey and thus identifies factors of customer’s evaluation for a new venture. The survey is done with a sample of 260 customers who have visited restaurants which have been at least for one year in the market and not more than three years. The scale used in the study has been adopted from the study of Nagy’s newness scale. The statistical design includes regression to identify the relationship. A positive relationship has been found among the variables suggesting the importance of assets and liabilities in developing customer’s criteria of evaluation and thus affects customer satisfaction and loyalty. Manager’s insight is necessary to understand the factors of customer’s evaluation of any new product or new firm and this study aims to add theoretical as well as practical dimensions to existing theories.