Sci.Int.(Lahore),25(2),387-394,2013 ISSN 1013-5316; CODEN: SINTE 8 387 IMPACT OF EMPLOYEE CHARACTERISTICS AND THEIR PERFORMANCE ON CUSTOMER SATISFACTION 1 Abdus Sattar Abbasi, 2 AbdUL Khaliq Alvi COMSATS Institute of Information Technology Lahore Pakistan, e-mail: drabdussattar@ciitlahore.edu.pk , Mobile: +92 300 5200567 2 Peak Solutions College, Griffin Campus Lahore Pakistan, e‐mail: khaliqalvi@gmail.com ABSTRACT: This study aims to examine the impact of employee characteristics (empathy, expertise and reliability) on employee performance and customer satisfaction in a mobile phone service provider of Pakistan. In addition to that study also seeks to investigate the influence of employee performance on customer satisfaction. Findings of the study indicate that employee characteristics and employee performance positively persuade customer satisfaction in a mobile phone service provider of Pakistan. Moreover, empathy and reliability positively influence employee performance, whereas, expertise and reliability strongly impact customer satisfaction. A survey research was carried out in a mobile phone service provider of Pakistan with the help of structured questionnaire. Questionnaire consisted of 37 items adopted from previous studies to observe employee characteristics, employee performance and customer satisfaction. This study evaluated impact of three employee characteristics including empathy, reliability and expertise. Current study is adding to the body of literature by assessing the relationship of these employee characteristics, employee performance and customer satisfaction in a business organization in Pakistani cultural context. Keywords: Employee characteristics, Employee Performance, Customer satisfaction, mobile phone service provider of Pakistan 1. INTRODUCTION There had been several studies in past investigating relationship between employee behavior and customer satisfaction. These findings provide experimental verification of positive relationship between employees’ characteristics and customer satisfaction [1-2-3-4-5]. Strong associations of these variables have influential impact on managerial practices. Currently, a lot of organizations have spent extensive resources on the practices that will enable them to enhance customer satisfaction [6-7]. This study aims to investigate the relationship between employee characteristics, performance and customer satisfaction in one of the leading cellular providing organization of the Country. It will be interesting for both academics and practicing managers to delve into such exploration to better understand dynamics of employee behavior and customer satisfaction in cellular industry. From an academic perspective, this study will provide deeper insight into the relationship between these three constructs in local context in general and in cellular industry in particular. From a managerial perspective, this research would help industry professionals to understand relevance of employee characteristics and their performance to ensure customer satisfaction. In current study researchers will focus on employees’ characteristics (such as empathy, expertise and reliability), performance dimension (such as efficiency, responsibility and integrity) and customer characteristics (such as pleasure, collaboration and Expectations). 2. LITRUTURE REVIEW Customer Satisfaction The ultimate objective of the organizations now a days is to satisfy a cluster of target customers with the help of competitive advantage, generally because “returns achieved are possible through building profitable relationships with customers and is considered the lifeblood of operating firms” [8]. In fact, developing positive customer relations and to enhance the level of customer satisfaction are regarded as the basic drivers of long term organizational financial performance [9]. Findings of the research conducted by Homburg et al. [10] concluded that customer satisfaction significantly affected consumer’s motivation to pay. Higher customer satisfaction results in repeat/frequent purchases. Luo and Bhattacharya [11] proposed that customer satisfaction is associated with market value of the product and organization. Satisfaction is defined as the “customer’s reaction towards the assessment of perceived difference between prior expectations and real performance” [12]. Satisfaction is regarded generally as the perceptions of individuals; these are not built in the products or services; so, various customers will articulate different extents of satisfaction for the same experienced product or service [13]. Moreover, it is argued that satisfaction has both the emotional and cognitive perspectives [14]. These dimensions visualize the impacts of cultures on attitudes and perceptions which formulate the behavior of individuals [15]. Customer satisfaction is viewed as an important parameter of organizational success and has highlighted to have influential impact on attitudes, repurchasing and word of mouth Sivadas and Baker-Prewitt [16], to be a significant antecedent of future demands Kasper [17], to affect profitability Anderson et al. [18], and in future, leads to customer loyalty [19]. Moreover, the findings of Day [20] concludes that consumer satisfaction leads to higher level of consumer retention while Huber et al. [21] asserts that customer satisfaction is associated with willingness of customers to pay higher prices. Employee Characteristics The previous studies have proposed two types of employee characteristics. First is about the personal selling that is