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Total Customer Satisfaction

In general, satisfaction is a person’s feelings of pleasure or disappointment that result from comparing a product or service’s perceived performance (or outcome) to expectations. 

If the performance or experience falls short ofexpectations, the customer is dissatisfied. If it matches expectations,the customer is satisfied. If it exceeds expectations, the customer is highly satisfied or delighted.

Customer assessments of product or service performance depend on many factors, including the type of loyalty
relationship the customer has with the brand.

Consumers often form more favorable perceptions of a product with a brand they already feel positive about. Research has also shown an asymmetric effect ofproduct performance and expectations on satisfaction: The negative effect on customer satisfaction of failing to meet expectations is disproportionally stronger than the positive effect of exceeding expectations.

Although the customer-centered firm seeks to create high customer satisfaction, that is not its ultimate goal.
Increasing customer satisfaction bylowering price or increasing services may result in lower profits. The company
might be able to increase its profitability by means other than increased satisfaction (for example, by improving manufacturing processes or investing more in R&D).

The company also has many stakeholders, including employees, dealers, suppliers, and stockholders. Spending more to increase customer satisfaction might divert funds from increasing the satisfaction of other “partners.”

Ultimately, the company must try to deliver a high level of customer satisfaction subject to also delivering acceptable levels to other stakeholders, given its total resources.

Whether the buyer is satisfied after purchase depends on the offer’s performance in relationship to the buyer's expectations, and whether the buyer interprets any deviations between the two.'’ 

In general, satisfaction is a person's feelings of pleasure or disappointment that result from comparing a product’s perceived performance (or outcome) to their expectations.' 

If the performance falls short of expectations, the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted.

 Customer assessments of product performance depend on many factors, especially the type of loyalty relationship the customer has with the brand.2° Consumers often form more favorable perceptions of a product with a brand they already feel positive about. 

Although the customer-centered firm seeks to create high customer satisfaction, that is not its ultimate goal. 

If the company increases customer satisfaction by lowering its price or increasing its services, the result may be lower profits. The company might be able to* increase its profitability by means other than increased satisfaction (for example, by improving manufacturing processes or investing more in R&D). 

Also, the company has many stakeholders, including employees, dealers, suppliers, and stockholders. Spending more to increase customer satisfaction might divert funds from increasing the satisfaction of other “partners.” Ultimately, the company must operate on the philosophy that it is trying to deliver a high level of customer satisfaction subject to delivering acceptable levels of satisfaction to the other stakeholders, given its total resources.

How do buyers form their expectations? Expectations result from past buying experience; friends’ and associates’ advice; and marketers’ and competitors’ information and promises. If marketers raise expectations too high, the buyer is likely to be disappointed. 

However, if the company sets expectations too low, it won't attract enough buyers (although it will satisfy those who do buy) Some of todays most successful companies are raising expectations and delivering performances to match. 

Korean automaker Kia found success'in the United States by launching low-cost, high-quality cars with enough reliability so that it could offer 10-year warranties. 

A customer's decision to be loyal or to defect. is the sum of many small encounters with the company. Many companies now strive to create a branded customer experience. 

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