In this case, it was found out that the authors talk about the general perception of customer satisfaction, definitions, generally refers to the concepts and inserts not one but several variables, the factors that help understand why the customer can stay fascinated, satisfied. In addition to this, we see that this includes not only services but also the easiest items, as distinct from services that are measurable and evaluation of satisfaction to many other factors packaging, design, brand, size, etc.
As Hill et al. Vavra tells that it is difficult to provide a specific definition suitable for all without exception, services, so gave two main features which can characterize the concept:. Meanwhile, as Hill et al. So this concept can be seen in the fact that customer satisfaction remains the ultimate sentence if the service or the future of its rates of use, content.
Definitions of customer satisfaction Grigoroudis and Siskos, However, the authors consider that customer satisfaction is in no way be confused with quality of service. First of all, customer satisfaction is a broader concept than service quality.
Secondly, the service must be tested to give a final opinion on it. However, in this case, it is impossible to form a satisfaction or dissatisfaction with hotel services in their own field testing.
Third, customer satisfaction is much more subjective and emotion-based phenomenon than the quality of service. Finally, Hill et al. Grigoroudis and Siskos add to table some definitions which show the main points between satisfaction as an outcome and satisfaction as a process see Table 1. Eventually, most of authors believe that this concept holds a lot of keywords attitude, emotions, humour, consumer loyalty, their relationships and experience, attention, enjoyment, quality of service, maintenance, etc.
But perhaps all of them points out that customer satisfaction might be characterized the best in two ways: The factors which determine the consumer satisfaction on services.
Therefore every organization must continually monitor if their customers are satisfied. Dulskis identifies the following consumer satisfaction factors: So we see that one of the key customer satisfaction factors — consumer awareness, perception, and attitude. Jonikas believes that user satisfaction depends on the established relationship with the service provider. We can see that Dulskis singled out customer satisfaction factors, so for companies it is important to see and evaluate the delivery efficiency, the staff friendly attitude and environment.
Good service can offset the higher price or to prevent the further sale. Some customers may buy more expensive services simply because it can buy closer to home, but rather a link to go to another end of town to get a full story, details about the service and friendly service.
Thompson in his article briefly and clearly describes the seven key factors that contribute to customer satisfaction on services. So the author refers such factors as the interaction face to face, informative, helpfulness and good service, attention to details, clearly structured service behaviour in order not to send the client to a couple of other crews and so on.
Of course, there are mistakes, misunderstandings, for example, crashing technique and did not come on time reports, letters, contracts, etc. Also, the authors Hill et al. As interpreted by the authors, the staff is proud to provide services with a good mood, enthusiasm passion and only then they do the best in their job.
Thus, overlooked a number of both foreign and Lithuanian authors opinions, I have concluded my own perception of customer satisfaction and made the scheme which clearly shows the relation between the customer satisfaction and its factors see Figure 1. First of all, regardless the service is used or not at all, or just waiting for the first experience, often a person has formed an opinion about the service.
Then doubtless even after the customer experience it is formed, developed some emotions, feelings, reaction to what is got and depending on the situation — positive or negative.
Finally, the scheme and analysis was based on literature but, on the other hand, it helped to form a clear view about what leads to customer satisfaction, what are the key factors of that.
In the list what form the satisfaction there are shown mostly discussed aspects, determinants. However, it is possible to continue the list and add more features because the satisfaction is a subjective thing. After all some people like one aspect, others need opposite things so everyone has different view, need and expectations. After discussing the concepts of both customer satisfaction and the most important determinants to keep consumers satisfied it is left to find out the importance of customers satisfaction on services.
As one of the most frequently mentioned reasons why customer satisfaction is so important for companies on services is a consumer loyalty.
Singh considers that each organization becomes more flexible to the needs of its customers by offering alternatives to exclusive offers. After all, the longer company is able to keep the consumer at the same time, it also receives and higher profits.
Expressing similar views Vavra considers that some content to the service customers is not only long-term clients, but also to spread positive information and feedback their experiences to others, potential customers, perhaps encouraging them to try the service.
In other words, according to Singh , when satisfied customers share their experiences with around five to six people, while disappointed with the ten ones. By the way, today communication spread faster and further than ever before, because most companies operate online, target online communities, etc.
So therefore the importance of customer satisfaction is particularly important for service organizations Vavra, Authors Hill et al. It could be said that the relations between customers and staff or organization have a direct connection this is called the mirror effect. Thus, the organization is interested in moral and increase staff satisfaction and developing loyalty. Firstly, it is noted that customer satisfaction can reliable realistic market information. What is a Customer? What Is Employee Satisfaction?
What Is Customer Service? What is Relationship Marketing? What Is Continual Improvement? What is Customer Value? Consumer Behavior in the Hospitality Industry: Practice and Study Guide. Introduction to Retail Merchandising. FTCE Marketing Praxis Mathematics - Content Knowledge Praxis Business Education - Content Knowledge Customer satisfaction is essential for business success in today's marketplace. What Is Customer Satisfaction? Typical areas addressed in the surveys include: Quality of product Value of product relative to price - a function of quality and price Time issues, such as product availability, availability of sales assistance, time waiting at checkout, and delivery time Atmosphere of store, such as cleanliness, organization, and enjoyable shopping environment Service personnel issues, such as politeness, attentiveness, and helpfulness Convenience, such as location, parking, and hours of operation Examples of Customer Satisfaction Let's say you're going to open your own coffee shop.
You have developed the following plan to maximize customer satisfaction: Try it risk-free No obligation, cancel anytime. Want to learn more? Select a subject to preview related courses: You carefully selected your location to be as convenient as possible for your target market.
You hire an interior designer to furnish the coffee shop with comfortable seating and other fixtures to maximize comfort and ambiance. You obtain imported coffee beans from the best coffee regions of the world and purchase the finest quality coffee and espresso machines. You create a strategic alliance with a local delicatessen to supply your shop with breads, pastries, soups, and sandwiches.
You price all your products slightly below the finest of your competition but well above the cheaper competition to send a message of a premium product for an economical price. You train your staff in business and service etiquette and supply them with well-tailored uniforms. You provide short customer service survey cards at each table and have a well-placed suggestion box. You diligently review the surveys and suggestions and make changes that make sense.
Lesson Summary Customer satisfaction is an abstract concept that basically measures the degree to which the products or services of a business meet consumers' expectations. Learning Outcomes Work through the lesson on customer satisfaction with the following goals in mind: Describe the concept of customer satisfaction Point out the areas addressed by customer satisfaction surveys Cite customer satisfaction examples.
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The most comprehensive definition of satisfaction has been offered by Kotler and Keller who define satisfaction as “person’s feeling of pleasure or disappointment which resulted from comparing a product’s perceived performance or outcome against his/ her expectations” (Kotler and Keller, , p).
CDV is the difference between Total Customer Value and Total Customer Cost. Total Customer Value is the bundle of benefit customers expect from a product/ service. Total Customer Cost is the bundle of cost customer expect to incur in evaluating/ obtaining of using product or services.
Chapter 5 Kotler Customer value, Satisfaction and Loyalty 1. Chapter 5Customer Value, Satisfaction and Loyalty Mark Angelo Reyes MARKMA. Brand loyalty. Loyalty is a direct measure of how willing customers are to stick to a brand. Therefore Aaker argues the price premium as the basic indicator for brand loyalty and the single best measurement of brand equity. Loyal customers prevent entry of potential competitors and lower the treat of substitutes.
Philip Kotler defined customer satisfaction as benefits – costs + competitive advantage = customer satisfaction. Customer satisfaction directly ties into a customer retention definition. Decisively, our customer loyalty definition is a customer’s brand dedication because of the consistent and repeated satisfaction the brand delivers. Dr Philip Kotler Refines the Theory of Marketing. Posted on April 4, by Rajiv In his earlier definition he mentioned that “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.” He also defined Customer.