Customer Satisfaction

BUS 308

Dr. Laura Cella

Angela Petersen

February 28, 2011

Table of Contents

Introduction3

Discussion3

Conclusion12

References13

Introduction

This report is discussing the impact of customer satisfaction on the business. This report has discussed some of the articles and researches that have been written on the topic of customer satisfaction.

Discussion

Customer satisfaction is vital to the longevity of a business. Businesses often use outside sources to compile surveys and determine the customer service health of their company.

The different models discussing the concept of customer satisfaction based on the disconfirmation-of-outlooks model (e.g. the models which were presented by Cadotte, and Jenkins in the year 1987) have hardly ever discussed the responsibility of customer value as an precursor of determination of customer satisfaction. Some research's in this field have analyzed the concept of superiority of service standards as an pre-requisite of the customer satisfaction, we can take the example of the research carried out by Rust and Oliver in the year 1994, who focused on dimensions of service quality as a pre-requisite for determining the customer satisfaction. While most of the models include advantages for the customers, and do not take into consideration any constituent of sacrifice. The limitations in benefits for the customers e.g. poor service quality, can be balanced by making the customer perceive the increase in the product value for them e.g. a reduction in the price of the product with the same product features, thereby, ensuring customer satisfaction. Therefore, the trade-off which are made by the customers have to be taken into consideration, when a company is determining the pre-requisites of customer satisfaction. The researches on management of service for the customers implies that the satisfaction of a customer is the outcome of the perception of the customer about the value he is getting from a product (Heskett et al. 1997). By making use of the examples of Southwest Airlines and AmEx Travel Services, Heskett et al. has described the way that an organization can bring value in their services i.e. providing good standard of services at a price, deemed reasonable by the customer, which they are bringing for their customers, and therefore, they are also meeting the needs of their customers as well. In theory, the value perceived by the customer can be measured as a mind-related activity which immediately catches the sacrifice divergence by the customers, while the satisfaction of a customer is largely a useful and evaluative retort (Oliver 1993).

Many companies define Customer satisfaction as how happy or satisfied a customer is with their experience. However, answering that question can become significantly more complex. Oftentimes customers are given surveys asking about their product or service purchased, how well it worked, the time the transaction took, the sales personnel's proficiency or helpfulness. (Define Customer Satisfaction, 2010) The detail of the survey can vary greatly. The methods of surveys can vary as well from requesting customers to fill out surveys online or in the store to a more assertive tactic of having a representative ask the customer questions and fill out ...