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This thesis explores the determinants of customer satisfaction and the relationship between customer satisfaction and loyalty in the costume jewelry manufacturing industry. It attempts to provide information to costume jewelry manufacturers on the key service and relationship factors that contribute to and promote customer satisfaction, and the establishment of a strong intent for relationship continuity.

This paper reveals the result of interviews put to senior managers of costume jewelry retail or design houses. These interviews were tailored specifically to the costume jewelry industry, by integrating theories pertinent to service and relationship quality, customer satisfaction, customer loyalty, and characteristics that are unique to the industry.

The results of these interviews reveal that overall customer satisfaction is achieved through the optimal performance of both service quality and relationship quality. Customers are satisfied when positive service quality is interlaced with positive relationship quality such as honest and timely communication, and when cooperative attitude is supported by behaviors stemmed from shared business values and ethics. Customer loyalty is the cumulative outcome of customer satisfaction over time, an outcome that leads the way to greater business continuity.

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