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Customer Satisfaction’s Role in Marketing

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❶Monitoring customer satisfaction is important because we are much more likely to tell our friends and family about a bad experience with a product or service than a good experience.

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14.3 Customer Satisfaction
What Is Customer Satisfaction?
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This happened over a decade ago, yet the sign still hangs in his shop today. An older couple had religiously brought their cars to him for service. When the husband passed away, his wife was overcome with grief. The shop owner recommended the car dealer mentioned on his sign. She returned to his shop a week later.

She tearfully told him they had locked her in a room for hours. They relentlessly pressured to buy the top of the line model. The salesman then added everything possible to the car. The shop owner told me he was livid.

Feeling responsible, he contacted the car dealer. She was capable of making her own buying decisions. He had made the recommendation and she had suffered for it.

As a result, he launched his own personal vendetta. The mechanic began a very active off-line campaign to notify the community of the atrocity committed by this dealership. He was invited to speak at community events. He appeared on talk radio shows. He was interviewed by local news media. I was new to the community. He told me had had dozens of them made. They were displayed in senior centers and other stores throughout the area.

Businesses with great customer retention get better ROI from their marketing. Creating a successful marketing strategy begins and ends with knowing your target audience.

In the days prior to the world wide web and the ensuing social media explosion — the holy grail of marketing was word of mouth advertising. These hard working small businesses could count on their supremely satisfied customers to spread the word. She tightly targeted her marketing efforts to focus on a specific target or niche audience. Not only was her marketing tightly targeted, she even tightly targeted her product offering.

She began this process long before she had read my book Beyond the Niche: After 6 short months the results were literally amazing. That meant that out of visitors to her site, 76 were signing up for her newsletter. Further, they can hurt the firm by making negative comments about it to prospective customers.

Willingness to recommend is a key metric relating to customer satisfaction. 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.

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 While, Day 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.

It is considered that customers judge products on a limited set of norms and attributes. Olshavsky and Miller and Olson and Dover 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. In some research studies, scholars have been able to establish that customer satisfaction has a strong emotional, i. Especially for durable goods that are consumed over time, there is value to taking a dynamic perspective on customer satisfaction. Within a dynamic perspective, customer satisfaction can evolve over time as customers repeatedly use a product or interact with a service.

The satisfaction experienced with each interaction transactional satisfaction can influence the overall, cumulative satisfaction. Scholars showed that it is not just overall customer satisfaction, but also customer loyalty that evolves over time. It is negatively confirmed when a product performs more poorly than expected. There are four constructs to describe the traditional disconfirmation paradigm mentioned as expectations, performance, disconfirmation and satisfaction.

In operation, satisfaction is somehow similar to attitude as it can be evaluated as the sum of satisfactions with some features of a product. Churchill and Suprenant in , evaluated various studies in the literature and formed an overview of Disconfirmation process in the following figure: Organizations need to retain existing customers while targeting non-customers. It can be, and often is, measured along various dimensions. A hotel, for example, might ask customers to rate their experience with its front desk and check-in service, with the room, with the amenities in the room, with the restaurants, and so on.

Additionally, in a holistic sense, the hotel might ask about overall satisfaction 'with your stay. As research on consumption experiences grows, evidence suggests that consumers purchase goods and services for a combination of two types of benefits: Hedonic benefits are associated with the sensory and experiential attributes of the product. Utilitarian benefits of a product are associated with the more instrumental and functional attributes of the product Batra and Athola The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate.

The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization's products. Work done by Parasuraman, Zeithaml and Berry Leonard L [11] between and provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature.

The usual measures of customer satisfaction involve a survey [12] using a Likert scale. The customer is asked to evaluate each statement in terms of their perceptions and expectations of performance of the organization being measured.

Good quality measures need to have high satisfaction loadings, good reliability, and low error variances. In an empirical study comparing commonly used satisfaction measures it was found that two multi-item semantic differential scales performed best across both hedonic and utilitarian service consumption contexts.

It loaded most highly on satisfaction, had the highest item reliability, and had by far the lowest error variance across both studies.

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If customer satisfaction can be defined as the feeling a person experiences when an offering meets his or her expectations, then there are two critical ways to improve customer satisfaction. The first is to establish appropriate expectations in the minds of customers.

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Customer feedback can show you the types of marketing efforts that are working and the areas of your business and marketing you need to improve to increase customer satisfaction. Small e-business owners solicit feedback in a variety of ways including email, surveys, .

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Customer satisfaction is a central concept to this proposal. A marketing company aims to set a level of expectation at which customers are satisfied that value is delivered through an exchange process. Customer satisfaction can help your business to achieve a sustainable competitive advantage. It’s about understanding the way a customer feels after purchasing a product or service and, in particular, whether or not that product or service met the customer’s expectations.

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Customer satisfaction plays a HUGE role in the success (or failure) of your marketing campaign. Customer satisfaction plays a huge role in customer retention. Imagine the frustration of the people who left the message scrawled in ketchup on the table above. Customer satisfaction helps your business achieve business success and a competitive edge over competitors. Satisfied customers are loyal customers and often provide repeat business, referrals and word-of-mouth advertising.