Business is made up of the largest group of volunteers in the

world......customers!

SyllabusCustomer Satisfaction: Meaning, Definition, Significance of

Customer Satisfaction, Components of Customer Satisfaction,

Customer Satisfaction Models, Rationale of Customer

Satisfaction, Measuring Customer Satisfaction, Customer

satisfaction and marketing program evaluation, Customer

Satisfaction Practices, Cases of Customer Satisfaction

What Do Customers Want?What Do Customers Want?

• Quality• Price• Lead-time• Service• Flexibility• Variability

What Do Customers Want?What Do Customers Want?

• High Quality• LowPrice• LowLead-time• High Service• High Flexibility• LowVariability

Customer Satisfaction

Satisfaction is defined as . . . “a person’s feelings of pleasure or

disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations.”

– i.e., Performance - ExpectationSatisfaction results when expectations are equaled or surpassed.

Westbrook and Oliver (1991) defined Satisfaction as “a post choice evaluative judgment concerning a specific selection”.

In customer relationship management,

customer satisfaction (CSAT) is a measure of

the degree to which a product or service

meets the customer's expectations.

Examples of Satisfaction GuaranteesExamples of Satisfaction Guarantees

Quality Values Sub Characteristics

Quality Best practices and high quality reputation of suppliers Worker’s Familiarity with organizational system Error free processing

Value

Efficiency

Timeliness On time delivery Using efficient, coordinated and fast paced delivery systems that take limited time

according to customers. The customer wants product or service delivery to take no less than all the time required.

It is based on the nature or function of the process, not some arbitrary number dictated by management.

Access

Self management Professional appearance Consistently positive interactions with no negativity or personal agendas Courtesy, friendliness, attentiveness and enthusiasm.

Environment Carry customer comfort in mind, make them feel welcome, be clean, safe, and well organized.

Quality performance at the front line and throughout all levels of delivery Supplier’s internal support for employees and systems. The customer expects current

methodologies The worker at every level of product and service delivery must have the resources

required to perform at optimum level.Teamwork

Commitment Form a relationship with a key person, which can be trusted and relied upon. Supplier that provides all information and constant solicitation of customer need. Customer wants to know up front about terms, conditions and anticipated or actual

disappointments. The supplier to take immediate responsibility and corrective action when the outcome is

not achieved.

Innovation9

ENHANCING CUSTOMER SATISFACTION

Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company.

In the Customer Satisfaction measurement setting these scales could be grouped into three broad categories. They were:

1.Performance Scales, such as poor, fair, good and excellent 2.Disconfirmation Scales, such as worse than expected to better than expected3.Satisfaction Scales, such as very dissatisfied to very satisfied

MEASURING CUSTOMER SATISFACTION

CUSTOMER SATISFACTION INDEX

CSI reflects overall satisfaction which is a weighted average of satisfaction on various parameters.Customer Satisfaction Index = w1*s1+w2*s2+w3*s3+w4*s4 + .........+wn*sn

Where w1, w2, w3, ...... wn are weights assigned to different attributes.

S1, s2, s3, ..........., sn are average satisfaction scores on different attributes.

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THE COMMON MEASUREMENT TOOLS (CMT):CMT is the result of an extensive study by researchers

at the Canadian Centre for Management Development and others, which examined a number of approaches to standardising measurement of customer satisfaction with public services. It incorporates five main questioning approaches, measuring:

expectations of a number of service factors;perceptions of the service experience on these factors; level of importance attached to each of a number of

service elements; level of satisfaction with these elements; respondents' own priorities for improvement.

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Kano Model: (Kano et al 1984)

Kano developed Questionnaire that had following characteristics:

For each product feature a pair of questions is formulated to which the customer can answer in one of five different ways.

The first question concerns the reaction of the customer if the product shows that feature (functional question);

The second question concerns the reaction of the customer if the product does NOT show this feature (dysfunctional question).

By combining the answers all attributes can be classified into the six factors.

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Attractive Quality  These attributes provide satisfaction when achieved fully, but do not cause dissatisfaction when not fulfilled. These are attributes that are not normally expected, For example, a thermometer on a package of milk showing the temperature of the milk. Since these types of attributes of quality unexpectedly delight customers, they are often unspoken.

One-dimensional Quality  These attributes result in satisfaction when fulfilled and dissatisfaction when not fulfilled. These are attributes that are spoken of and ones which companies compete for. An example of this would be a milk package that is said to have ten percent more milk for the same price will result in customer satisfaction, but if it only contains six percent then the customer will feel misled and it will lead to dissatisfaction.

Kano Model attempts to classify the service quality parameters into following types of product/ service requirements that is of different significance to the research:

Must-be Quality:  These attributes are taken for granted when fulfilled but result in dissatisfaction when not fulfilled. An example of this would be package of milk that leaks. Customers are dissatisfied when the package leaks, but when it does not leak the result is not increased customer satisfaction. Since customers expect these attributes and view them as basic, it is unlikely that they are going to tell the company about them when asked about quality attributes.

Indifferent Quality : These attributes refer to aspects that are neither good nor bad, and they do not result in either customer satisfaction or customer dissatisfaction.

Reverse Quality : These attributes refer to a high degree of achievement resulting in dissatisfaction and to the fact that not all customers are alike. For example, some customers prefer high-tech products, while others prefer the basic model of a product and will be dissatisfied if a product has too many extra features.

CUSTOMER SATISFACTION MODELSCUSTOMER SATISFACTION MODELS

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• The Expectations Disconfirmation Model: In this model a consumer compares pre-consumption expectations with post-consumption experiences of a product/service thus forming an attitude of satisfaction or dissatisfaction toward the product/service.

• Norms Models: The consumer compares perceived performance with some standard for performance which is not a predictive expectation.

• The Perceived Performance Model: In this model expectations have insignificant role in shaping satisfaction.

• Multiple Process Models: This model exemplifies the satisfaction formation process as multidimensional suggesting that consumers use more than one standard of comparison in forming a confirmation/disconfirmation judgment about an experience with a product/service.

CUSTOMER SATISFACTION MODELS . . . Contd.CUSTOMER SATISFACTION MODELS . . . Contd.

• Attribution Models: this model held that consumers use three factors to determine attribution’s effect in satisfaction. These are locus of causality, stability, and controllability.

• Affective Models: This model moves beyond rational processes. Here emotion, liking, and mood have influence over feeling of satisfaction or dissatisfaction emerging out of consumption experience.

• Equity Models: This model emphasizes the consumer’s stance about fair treatment in the consumption process. Fair treatment can use the concept of the equity ratio (the amount of return for effort made) or the concept of social comparison (the perceived, relative level of product/service performance that other consumers experience).

Rationale of Customer SatisfactionRationale of Customer Satisfaction

• Application of concept of Customer Satisfaction provides numerous benefits to the organizations viz Customer Retention, Customer Loyalty, Repurchase Intentions, and Business Performance.

1. Customer Satisfaction Building Customer Loyalty:

2. Customer Satisfaction Helping in Customer Retention

3. Customer Satisfaction Strengthening Customer’s Repurchase Intentions:

4. Customer Satisfaction Leading to Superior Business Performance

Customer SatisfactionImprovement

Age of hearing aid

Selling Consciousness

CustomerFeedback

Binaural

CustomerService

CounselingIndustryimage

Fitting protocols

Value

TechnologyExpectations