Impact of customer satisfaction stiateoies

mso-fareast-font-family:"Times New Roman";color:#222222">From Wikipedia, the


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"Times New Roman";color:#222222;mso-ansi-language:EN">impact of customer


satisfaction strategies  

"Times New Roman";color:#222222;mso-ansi-language:EN">(often abbreviated as

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">CSAT

"Times New Roman";color:#222222;mso-ansi-language:EN">, more correctly

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">CSat

"Times New Roman";color:#222222;mso-ansi-language:EN">) is a term frequently


used in

color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">marketing. It is a


measure of how products and services supplied by a company meet or surpass

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">customer

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">expectation. Customer


satisfaction is defined as "the number of customers, or percentage of


total customers, whose reported experience with a firm, its products, or its


services (ratings) exceeds specified

"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">satisfaction

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">goals."

"Times New Roman";color:#222222;mso-ansi-language:EN">[1]

"Times New Roman";color:#222222;mso-ansi-language:EN">

"Times New Roman";color:#222222;mso-ansi-language:EN">The

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">Marketing Accountability Standards Board (MASB)

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">endorses the definitions,


purposes, and constructs of classes of measures that appear in

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">Marketing Metrics

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">as part of its ongoing


Common Language in Marketing Project.

"Times New Roman";color:#222222;mso-ansi-language:EN">[2]

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">In a survey of nearly 200


senior marketing managers, 71 percent responded that they found a customer


satisfaction metric very useful in managing and monitoring their businesses.

"Times New Roman";color:#222222;mso-ansi-language:EN">[1]

"Times New Roman";color:#222222;mso-ansi-language:EN">

"Times New Roman";color:#222222;mso-ansi-language:EN">It is seen as a

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">key performance indicator

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">within business and is


often part of a

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"Times New Roman";color:#222222;mso-ansi-language:EN">Balanced


Scorecard. In a competitive marketplace where businesses compete for


customers, customer satisfaction is seen as a key differentiator and


increasingly has become a key element of business strategy.

"Times New Roman";color:#222222;mso-ansi-language:EN">[3]

"Times New Roman";color:#222222;mso-ansi-language:EN">

"Times New Roman";color:#222222;mso-ansi-language:EN">"Within


organizations, customer satisfaction ratings can have powerful effects. They


focus employees on the importance of fulfilling customers' expectations.


Furthermore, when these ratings dip, they warn of problems that can affect


sales and profitability.... These metrics quantify an important dynamic. When a

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">brand

"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">has loyal customers, it


gains positive word-of-mouth marketing, which is both free and highly


effective."

mso-ansi-language:EN">[1]

"Times New Roman";color:#222222;mso-ansi-language:EN">

"Times New Roman";color:#222222;mso-ansi-language:EN">Firms need reliable and


representative measures of satisfaction to effectively manage customer


satisfaction.

"Times New Roman";color:#222222;mso-ansi-language:EN">"In researching


satisfaction, firms generally ask customers whether their product or service


has met or exceeded expectations. Thus, expectations are a key factor behind


satisfaction. When customers have high expectations and the reality falls short,


they will be disappointed and will likely rate their experience as less than


satisfying. For this reason, a luxury resort, for example, might receive a


lower satisfaction rating than a budget motel—even though its facilities and


service would be deemed superior in 'absolute' terms."

"Times New Roman";color:#222222;mso-ansi-language:EN">[1]

"Times New Roman";color:#222222;mso-ansi-language:EN">

"Times New Roman";color:#222222;mso-ansi-language:EN">The importance of


customer satisfaction diminishes when a firm has increased

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">bargaining power.


For example,

color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">cell phone

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">plan providers, such as

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">AT&T

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">and

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">Verizon, participate


in an industry that is an

"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">oligopoly, where


only a few suppliers of a certain product or service exist. As such, many cell


phone plan contracts have a lot of

"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">fine print

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">with provisions that they


would never get away if there were, say, 100 cell phone plan providers, because


customer satisfaction would be far too low, and customers would easily have the


option of leaving for a better contract offer.

color:black;mso-ansi-language:EN">Contents

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> [show] 

"Times New Roman";color:#222222;mso-ansi-language:EN">

"Times New Roman";color:#222222;mso-ansi-language:EN">

"Times New Roman";color:#222222;mso-ansi-language:EN">A business ideally is


continually seeking feedback to improve customer satisfaction.

"Times New Roman";color:#222222;mso-ansi-language:EN">"Customer


satisfaction provides a leading indicator of consumer

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">purchase intentions

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">and

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">loyalty."

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">[1]

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">"Customer


satisfaction data are among the most frequently collected indicators of market


perceptions. Their principal use is twofold:"

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">[1]

"Times New Roman";color:#222222;mso-ansi-language:EN">

Arial;color:#222222;mso-ansi-language:EN">1.    

"Times New Roman";color:#222222;mso-ansi-language:EN">"Within


organizations, the collection, analysis and dissemination of these data send a


message about the importance of tending to customers and ensuring that they


have a positive experience with the company's goods and services."

"Times New Roman";color:#222222;mso-ansi-language:EN">[1]

"Times New Roman";color:#222222;mso-ansi-language:EN">

Arial;color:#222222;mso-ansi-language:EN">2.    

"Times New Roman";color:#222222;mso-ansi-language:EN">"Although sales or


market share can indicate how well a firm is performing

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">currently

"Times New Roman";color:#222222;mso-ansi-language:EN">, satisfaction is perhaps


the best indicator of how likely it is that the firm’s customers will make


further purchases

color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">in the future

"Times New Roman";color:#222222;mso-ansi-language:EN">. Much research has


focused on the relationship between customer satisfaction and retention.


Studies indicate that the ramifications of satisfaction are most strongly


realized at the extremes."

"Times New Roman";color:#222222;mso-ansi-language:EN">On a five-point scale,


"individuals who rate their satisfaction level as '5' are likely to become


return customers and might even evangelize for the firm. (A second important


metric related to satisfaction is willingness to recommend. This metric is


defined as "The percentage of surveyed customers who indicate that they


would recommend a brand to friends." When a customer is satisfied with a


product, he or she might recommend it to friends, relatives and colleagues.


This can be a powerful marketing advantage.) "Individuals who rate their


satisfaction level as '1,' by contrast, are unlikely to return. Further, they


can hurt the firm by making negative comments about it to prospective


customers.

color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">Willingness to recommend

mso-fareast-font-family:"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">is a key metric relating


to customer satisfaction."

color:#222222;mso-ansi-language:EN">[1]

"Times New Roman";color:#222222;mso-ansi-language:EN">

"Times New Roman";color:#222222;mso-ansi-language:EN">"In literature


antecedents of satisfaction are studied from different aspects. The


considerations extend from psychological to physical and from normative to


positive aspects. However, in most of the cases the consideration is focused on


two basic constructs as customers expectations prior to purchase or use of a


product and his relative perception of the performance of that product after


using it.

"Times New Roman";color:#222222;mso-ansi-language:EN">Expectations of a


customer on a product tell us his anticipated performance for that product. As


it is suggested in the literature, consumers may have various "types"


of expectations when forming opinions about a product's anticipated


performance. For example, four types of expectations are identified by Miller


(1977): ideal, expected, minimum tolerable, and desirable. While, Day (1977)


indicated among expectations, the ones that are about the costs, the product


nature, the efforts in obtaining benefits and lastly expectations of social


values. Perceived product performance is considered as an important construct due


to its ability to allow making comparisons with the expectations.

"Times New Roman";color:#222222;mso-ansi-language:EN">It is considered that


customers judge products on a limited set of norms and attributes. Olshavsky


and Miller (1972) and Olson and Dover (1976) designed their researches as to


manipulate actual product performance, and their aim was to find out how


perceived performance ratings were influenced by expectations. These studies


took out the discussions about explaining the differences between expectations


and perceived performance."

"Times New Roman";color:#222222;mso-ansi-language:EN"> 

"Times New Roman";color:#222222;mso-ansi-language:EN">[4]

"Times New Roman";color:#222222;mso-ansi-language:EN">

"Times New Roman";color:#222222;mso-ansi-language:EN">In some research studies,


scholars have been able to establish that customer satisfaction has a strong


emotional (i.e., affective component).

"Times New Roman";color:#222222;mso-ansi-language:EN">[5]