Customer Satisfaction

1
Customer Satisfaction Loyalty Building Value
with Quality

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Chapter
Customer Satisfaction and Loyalty Building Value
with Quality
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http//www.ebay.com/
What has made e-bay so successful?
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Objectives

• Link consumer satisfaction loyalty to success
• Relate consumer expectations to satisfaction
• Understand how relationships build satisfaction
  loyalty
• Explore organization factors that enhance quality
  delivery of goods services
• Define describe quality

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Delighting Customers
Quality
Customer value
Loyalty
Satisfaction
5
Satisfaction Loyalty

• Outcomes
• Sales to increase revenues
• Less price sensitivity
• Lower organizations costs

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Think About It!

• Why is it important to achieve both satisfaction
  and loyalty?

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Customer Expectations
Derived from

• Prior Personal Experience
• Observation of Others

• Company advertising and promotion
• Company actions (e.g. service offerings)

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J.D. Power Associates
This TWA ad communicates TWAs commitment to
customer satisfaction
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Customer Defections
Reasons for Defection
Anderson, Fornell, Lehman (1994)
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Think About It!

• How does a company find out why its customers are
  defecting?

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Satisfaction Ratings and Measurement

• Provides a means to
• Compare brands
• Determine how well products perform
• Monitor customer satisfaction

• Customers, and therefore companies, should rely
  on publications such as Consumer Reports and
  Motor Trend
• Internet provides a wealth of information, but
  not all is valid.

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Satisfaction Ratings and Measurement

• Competitive advantage comes to companies that can
  learn and adjust to market forces.

• For example, The Insurance Institute for Highway
  Safety
• Uses a more rigorous crash test than the
  governments.
• Forced automakers, through continual reports on
  NBC, to comply with a new set of criteria.
• After five years, cars are highly improved.
• http//www.hwysafety.org/

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Connecting to Customers

• Personal Relations
• Empathy
• Trust
• Commitment
• Rewards

• Diversity Satisfaction
• Ethnic Markets
• Growing minority population
• Global Competition Satisfaction

14
This business-to-business advertisement
establishes a personal relationship by providing
the direct phone numbers of three company vice
presidents.
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Xerox wins many awards for quality and customer
satisfaction.
Http//www.xerox.com
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Think About It!

• How can customer-delivered value improve a
  products marketing?

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Delivering Quality

• Assessment
• Subjective
• Objective
• Static vs. Dynamic
• TQM
• Continuous Process Improvement
• Benchmarking
• Recognizing

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Quality

• Ford put quality at
• the forefront of its
• marketing message
• after winning the
• Car of The Year
• award from
• Motor Trend.

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Using Quality Function Deployment (QDF)

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Think About It!

• Should companies encourage
• customers to complain?

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Malcolm Baldrige Award
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Think About It!

• What is the value in winning awards like the
  Baldrige Award, or ISO certification?

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Review

• Link consumer satisfaction loyalty to success
• Relate consumer expectations to satisfaction
• Understand how relationships build satisfaction
  loyalty
• Explore organization factors that enhance quality
  delivery of goods services
• Define describe quality