Skip to main content

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. 

For certificate:

Send us email:
ransfordglobalinstitute@gmail.com

WhatsApp:
+2349015992500

Ransford Global Institute
https://rtse.yolasite.com/




Labels

Labels:

Comments

Post a Comment

Popular posts from this blog

Impact of quality

The impact of quality, especially in the context of Total Quality Management (TQM), can be significant and far-reaching. Here are some key impacts: 1. Customer Satisfaction High-quality products and services lead to increased customer satisfaction, loyalty, and positive word-of-mouth, which can result in repeat business and new customers. 2. Competitive Advantage  Consistently delivering high-quality products or services can differentiate an organization from its competitors, leading to a competitive advantage in the market. 3. Cost Reduction  Improving quality often leads to reduced waste, rework, and warranty costs, which can result in overall cost savings for the organization. 4. Employee Morale and Engagement  Involving employees in quality improvement efforts can lead to higher levels of morale, job satisfaction, and engagement, as employees see the impact of their work and contributions to the organization's success. 5. Efficiency and Productivity  Quality impr...
Post a Comment
Read more

Influence of customer satisfaction

Customer satisfaction has a significant influence on various aspects of a business, including: 1. Customer Retention Satisfied customers are more likely to remain loyal to a brand and continue purchasing its products or services. High customer retention rates contribute to long-term profitability by reducing the need to constantly acquire new customers, which can be more costly. 2. Word-of-Mouth Marketing  Satisfied customers are more inclined to share positive experiences with friends, family, and colleagues, leading to positive word-of-mouth marketing. This organic promotion can significantly influence the purchasing decisions of others and contribute to the growth of a business's customer base. 3. Brand Reputation  Customer satisfaction directly impacts a company's reputation. Positive experiences build trust and goodwill, enhancing the brand's reputation and credibility in the marketplace. Conversely, negative experiences can tarnish a brand's image and deter potent...
Post a Comment
Read more

Delivering high customer value

Consumers have varying degrees of loyalty to specific brands, stores, and companies. Loyalty has been defined as “a deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.” The value proposition consists of the whole cluster of benefits the company promises to deliver; it is more than  the core positioning of the offering. For example, Volvo’s core positioning has been “ safety ,” but the buyer is promised more than just a safe car; other benefits include good performance, design, and safety for the environment.  The value proposition is thus a promise about the experience customers can expect from the company’s market offering and their relationship with the supplier. Whether the promise is kept depends on the company’s ability to manage its value delivery system.  The value delivery system includes all the experiences the customer wi...
Post a Comment
Read more