Research Project/Practicum MGMT3116

Theoretical Framework
Part I
 Theoretical Framework
Your theoretical framework defines the key concepts in your
research, suggests relationships between them, and discusses relevant
theories based on your Literature Review .

• A strong theoretical framework gives your research direction.

• It allows you to convincingly interpret, explain, and generalize from
your findings and show the relevance of your thesis
Theoretical Framework

Your theoretical framework is based on:

• Your problem statement
• Your research questions
• Your literature review
 Theoretical Framework: Building Blocks
Example: Problem Statement and Research Questions

A new boutique downtown is struggling with the fact that many of their online customers do not return to
make subsequent purchases. This is a big issue for the otherwise fast-growing store.

Management wants to increase customer loyalty. They believe that improved customer satisfaction will play
a major role in achieving their goal of increased return customers. To investigate this problem, you have
zeroed in on the following problem statement, objective, and research questions:

• Problem: Many online customers do not return to make subsequent purchases.

• Objective: To increase the quantity of return customers.

• Research question: How can the satisfaction of the boutique’s online customers be improved in order
to increase the quantity of return customers?
 Theoretical Framework: Building Blocks

The concepts of “customer loyalty” and “customer satisfaction” are clearly central to this study, along with
their relationship to the likelihood that a customer will return.

Your theoretical framework should define these concepts and discuss theories about the relationship
between these variables.

Some sub-questions could include:

• What is the relationship between customer loyalty and customer satisfaction?

• How satisfied and loyal are the boutique’s online customers currently?
• What factors affect the satisfaction and loyalty of the boutique’s online customers?

As the concepts of “loyalty” and “customer satisfaction” play a major role in the investigation and will later be
measured, they are essential concepts to define within your Theoretical Framework
Example Theoretical Framework
Example Theoretical Framework (slides 6-9)

Below is a simplified example showing how you can describe and compare theories in your paper . In this
example, we focus on the concept of customer satisfaction introduced in the previous slides (5-6).

Customer Satisfaction

Thomassen (2003, p. 69) defines customer satisfaction as “the perception of the customer as a result of
consciously or unconsciously comparing their experiences with their expectations.” Kotler & Keller (2008, p.
80) build on this definition, stating that customer satisfaction is determined by “the degree to which
someone is happy or disappointed with the observed performance of a product in relation to his or her
expectations.”

Performance that is below expectations leads to a dissatisfied customer, while performance that satisfies
expectations produces satisfied customers (Kotler & Keller, 2003, p. 80).
Example Theoretical Framework
The definition of Zeithaml and Bitner (2003, p. 86) is slightly different from that of Thomassen. They posit
that “satisfaction is the consumer fulfillment response. It is a judgement that a product or service feature, or
the product of service itself, provides a pleasurable level of consumption-related fulfillment.” Zeithaml and
Bitner’s emphasis is thus on obtaining a certain satisfaction in relation to purchasing.

Thomassen’s definition is the most relevant to the aims of this study, given the emphasis it places on
unconscious perception. Although Zeithaml and Bitner, like Thomassen, say that customer satisfaction is a
reaction to the experience gained, there is no distinction between conscious and unconscious comparisons
in their definition.
Example Theoretical Framework

Thomassen’s Customer Satisfaction Model

According to Thomassen, both the so-called “value proposition” and other influences have an impact on final
customer satisfaction. In his satisfaction model (Fig. 1), Thomassen shows that word-of-mouth, personal needs,
past experiences, and marketing and public relations determine customers’ needs and expectations.

These factors are compared to their experiences, with the interplay between expectations and experiences
determining a customer’s satisfaction level. Thomassen’s model is important for this study as it allows us to
determine both the extent to which the boutique’s customers are satisfied, as well as where improvements can be
made.
Example Theoretical Framework
Example Theoretical Framework

Alternatively,
 Of course, you could analyse the concepts more thoroughly and
compare additional definitions to each other.

 You could also discuss the theories and ideas of key authors in
greater detail and provide several models to illustrate different
concepts.