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
color:#222222;mso-ansi-language:EN">
"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">
mso-bidi-font-family:Arial;color:black;mso-ansi-language:EN">Purpose
mso-fareast-font-family:"Times New Roman";color:#555555;mso-ansi-language:EN">[
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"Times New Roman";mso-bidi-font-family:Arial;color:black;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">
mso-bidi-font-family:Arial;color:black;mso-ansi-language:EN">Theoretical Ground
mso-fareast-font-family:"Times New Roman";color:#555555;mso-ansi-language:EN">[
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"Times New Roman";mso-bidi-font-family:Arial;color:black;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]
