Customer Satisfaction Chapter 18

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Customer Satisfaction Chapter 18

• Lai Doan
• Cheryl Okunrinboye
• Sheila Nichelson

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What is Satisfaction?

• Satisfaction is a judgment of a pleasurable level
  of consumption related fulfillment.
• Consumers can experience satisfaction when a
  product or service gives greater pleasure then
  anticipated.

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Satisfaction focuses on fulfillment in varieties

• Satisfaction fulfillment is achieved by removing
  any negativity.
• For example having the hardware on your computer
  repaired.
• Under-Fulfillment or Over-fulfillment
  satisfaction is experienced when unexpected
  pleasure is achieved
• Internal state highlights the meanings that
  operates in the consumer field of awareness
  sociably and culturally.

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What is dissatisfaction?

• An unpleasant level of consumption related
  fulfillment.
• For example, Personal experience with Hyundai's
  100,000 miles or 10 year warranty is just for the
  engine not the other components.

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Managerial Concern with Satisfaction

• Customer is King, satisfying customer needs and
  wants.
• Product/Service Quality leads to Customer
  Satisfaction, Loyalty which achieves
  Organizational Objectives (e.g. profit, market
  share, shareholder value)

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Basic factors that influence satisfaction

• How are performance and Satisfaction related?
• Many managers believe that product performance or
  service quality paves the road to satisfaction
• Judgment are always based on someones perceptions

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Perceived Quality

• Perceived quality involves preferences, is based
  on comparative standards, differs among customers
  and situations, and resides in product use.
• Quality has both cognitive (thinking) and
  affective (emotional) aspects.

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How are employee and customer satisfaction
related?

• Corporate slogans and mission statement sometimes
  link customer satisfaction to employee
  satisfaction.
• The Critical incident technique is a systematic
  procedure for recording events and behaviors
  observed to lead to success or failure on
  specific task.

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How Are Choice and Satisfaction Related?

• Consumers use product features to form
  satisfaction judgments.
• Choice Criteria Product or service selection
• Satisfaction Drivers Satisfaction /
  Dissatisfaction
• Aspects of the consumption situation that
  directly affect satisfaction are unpredictable.

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How Do Consumers Judge Satisfaction?

• Expectation anticipation or predictions of
  future events.
• The product or services they purchase will
  fulfill their wants.
• For example, When you buy a new car, you expect
  it run well.

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The expectancy disconfirmation model (EDM) and
its limitation

• Disconfirmation of pre-consumption expectations
  is the key influence on consumer satisfaction.
• Positive disconfirmation occurs when performances
  exceed expectations and customer satisfaction
  increases.
• Negative disconfirmation occurs when expectations
  are not met, and customer dissatisfaction
  increases.

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Other Comparative Standards for Judging
Satisfaction

• Desires The levels of products attributes and
  benefits that a consumer believes will lead to or
  are connected with high-level values.

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Judging Satisfaction (Contd)

• Fairness Perceptions of fairness affects
  consumers satisfaction.
• Homans Rule of Justice Parties reward in
  exchange with others should be proportional to
  their investments or losses
• Distributional Fairness How rewards or outcomes
  are partitioned among the participants in an
  exchange.
• Procedural Fairness Manner in which the
  outcomes are delivered.
• Interactional Fairness How the consumer is
  treated by the marketer.

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Consumer Attributions and the Satisfaction Process

• Attribution Theory How individuals find
  explanations for outcomes or behaviors

Procedural Fairness
Satisfaction/ Dissatisfaction
Distributional Fairness
Outcomes
Interactional Fairness
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Different emotions associated with satisfaction

• Five emotional response modes
• Contentment The contentment response is
  characterized by low levels of emotional arousal
  and may entail disinterest. Contentment is a
  passive response. For example, a consumer might
  express contentment over a family car that has
  functioned reliably over many years.

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Emotional response modes (Contd)

• Pleasure the consumer confirms expectations and
  has moderate to high arousal and most likely high
  to moderate involvement as well. Consumer is
  more actively involved in processing process.
  For example, consumers choose a favorite piece of
  clothing, play a new CD just purchased

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Emotional response mode (Contd)

• Delight Delight response involves either a
  positive disconfirmation of expectations or
  alternatively, a positive event or outcome that
  the consumer did not have any expectations about.
  Example, Sears 5 coupon.

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Emotional response modes (Contd)

• Relief A feeling of relieve may come about as a
  response to unfulfilled negative expectations.
  For example, I didnt have to wait as long as I
  expected
• Ambivalence the simultaneous or sequential
  experience of multiple emotional states
  associated with acquisition or consumption
  processes. This might involve high level of
  involvement.
• For example, the joy of a bride choosing her
  wedding gown.

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Consequences of satisfaction and dissatisfaction

• In response to consumption experiences, consumers
  exercise one or more of the four behavior
  responses.

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Consequences of satisfaction and dissatisfaction
(Contd)

• Exit Not to purchase or use that product or
  service again.
• Voice Compliments an organization may receive
  when it delivers an especially satisfying
  outcome, complaints to the company about
  performance failure, negative and positive word
  of mouth with other consumers or consuming
  organizations, or third party complaints or
  compliments.

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Consequences of satisfaction and dissatisfaction
(Contd)

• Customer loyalty is a deeply held commitment to
  re-buy or re-patronize a preferred product or
  service consistently in the future, despite
  situational influences and marketing efforts
  having the potential to cause switching behavior.

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Consequences of satisfaction and dissatisfaction
(Contd)

• Twist refer to positive and negative ways in
  which consumers restructure meanings, roles, and
  objects in the marketplace.

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Example of positive twist

• Volunteer to answer phones during annual fund
  drives, regularly customers stopped by-passer to
  take coffee without paying.

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Negative twist

• Consumers reflect their dissatisfaction with a
  company by engaging in negative twist.
• Unwanted behaviors or acts or resistance against
  the company
• Example Creating website to inform other about
  the ones dissatisfaction with a company.

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Consequences of satisfaction and dissatisfaction
(Contd)

• For Firm
• Increase profit
• Predictable sale
• Positive word of mouth

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Summary Transformation in the Laundry Industry

• Americans wash a whopping 200 billion pound of
  laundry per year.
• In many parts of world laundry still be done as
  it has been for at least 4000 years.
• In U.S. doing laundry has undergone a major
  transformation, a lot easier now.
• U.S has 35,000 coin operated laundry in urban
  area, customers, single, under 35.

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Summary Transformation in the Laundry Industry
contd

• The laundry industry is changing. One of the
  change is the growth of the wash/dry and fold
  service or offer multi-service.
• At Drain Wash in S.F. customer can grab a bit,
  listen to live music or poem reading.
• At Stan Kleins rock and fold in Chicago,
  treating customer to neon light, movies on five
  screens, and gospel music while juggling loads.
• These Laundromats attempt to change how customer
  feel about doing laundry.

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What type of satisfaction, if any do you believe
consumers associate with completing their Laundry

• Satisfaction fulfillment
• Five emotional response modes
• Contentment
• Pleasure
• Delight
• Relief
• Ambivalence

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2. How are multi-service laundry trying to
influence satisfaction?

• Voice Compliments of Brian Wash may receive
  when it delivers an especially satisfying
  outcome.
• For example by word of mouth
• Customer loyalty is a deeply held commitment to
  come back for service consistently in the future.

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How are multi-service laundry trying to influence
satisfaction? (Contd)

• Twist refer positive and negative ways in which
  consumers restructure meanings, roles, and
  objects in the Laundry place.
• For example returning the laundry cart back into
  the building.

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3. What factors should Brain Wash consider in
assessing satisfaction with its new
multi-service laundry?

• Customer is King, satisfying customer needs and
  wants.
• Product/Service Quality leads to Customer
  Satisfaction, Loyalty which achieves
  Organizational Objectives (e.g. profit, market
  share, shareholder value)

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What factors should Brain Wash consider in
assessing satisfaction with its new
multi-service laundry? (Contd)

• Perceived quality involve preferences, is based
  on comparative standards, differs among customers
  and situations, and resides in product use.

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Our Contact Information

• Contact person Prof. James Whalen
• Telephone [phone]
• E-mail whalenjpw133_at_aol.com

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Our Conclusion

• Thank you for your attention!
• Good Luck on your final!
• Happy Holidays to you and your beloved ones!