Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Customer Satisfaction
Importance of customer satisfaction
The effect of customer satisfaction on a firm's profitability
Why measure customer satisfaction
How to measure customer satisfaction
The affective measures of the degree of customer satisfaction
Employee performance
The need for measuring employee performance
The contemporary business environment which is dynamic and highly competitive requires firms to have a high level of business intelligence. In this paper, we explore the concepts of customer satisfaction as other internal business processes such as employee performance. The aim is to explore how these constructs and parameters are measured as well as the need for their accurate measurement.
The contemporary business environment which is dynamic and highly competitive requires firms to have a high level of business intelligence. In this paper, we explore the concepts of customer satisfaction as other internal business processes such as employee performance. The aim is to explore how these constructs and parameters are measured as well as the need for their accurate measurement.
Customer satisfaction
Farris et al. (2010) defined customer satisfaction as the total number of customers or the percentage of the total customers whose narrated experience with a given firm or the ratings for their services exceeds the satisfaction goals that are exceeded.
Importance of customer satisfaction
Several researchers have investigated the importance of the concept of customer satisfaction to the success of businesses. The concept of customer satisfaction was defined by Kotler (2000) as an individual's feeling of pleasure or even disappointment that results from a comparison of the perceived performance of a given product in relation to the individual's expectations.
Hoyer and MacInnis (2001) indicated that satisfaction is a concept which can be associated with a feeling of acceptance, excitement, happiness, delight and relief. Several factors are indicated to affect...
Hokanson (1995) mentioned that these factors include but not limited to friendly staff, courteous staff, accurate billing, timely billing, competitive pricing, high quality service, good value as well as billing clarity.
The effect of customer satisfaction on a firm's profitability
The concept of customer satisfaction has been associated with increased profitability. Hoyer and MacInnis (2001) noted that satisfying customers are the foundation of all successful businesses since customer satisfaction leads to brand loyalty, repeat purchase as well as positive promotion via word of mouth.
Zairi (2000) mentioned that there are several studies that have investigated the exact impact of customer satisfaction on loyalty, repeat purchase as well as retention. Satisfied customers are noted to most likely involve themselves in the sharing of their encounters and experiences with other persons in order to convince them to buy a certain product. Aaker (1995) noted that the specific strategic dimensions of a given organization involves the need to be competitive via the implementation of programs that promote brand loyalty, customer satisfaction, relative cost, improved quality as well as the management of various employees who are able to perform.
The need for measuring customer satisfaction
The measurement of the concept of customer satisfaction is important since it may enable firms to understand the degree to which customer satisfaction is influenced by parameters beyond its control (HM Government,2007) like the media as well as to differentiate between what individuals say may influence their level of satisfaction.
Why measure customer satisfaction
The measurement of customer satisfaction therefore helps businesses identify what they can as well as cannot control. But most importantly, the concept of customer satisfaction helps businesses to better focus on their customers. It also galvanizes the owners of the business, staff dealing with clients, research and strategy staff and the senior management towards the…
References
Aaker, D.A., 1995, Strategic Market Management. 4th ed., New York, John Wiley.
Bhave, A (2011).Customer Satisfaction Measurement
http://www.symphonytech.com/articles/satisfaction.htm
Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance. Upper Saddle River, New Jersey: Pearson Education, Inc. ISBN 0137058292
Ripley, D (1999) Improving employee performance: moving beyond traditional hrm responses http://www.ispi.org/pdf/suggestedReading/Ripley.pdf
Internal Business Process In 1996, Duke Children's Hospital was facing tremendous challenges associated with a reduction in the number of Medicaid reimbursements that they were receiving from the government. To deal with these issues, the balanced scorecard approach was implemented at the facility. This is a tool that allows executives to effectively determine the various risks facing the business by looking at a number of elements to include: the financial, the
Lessons Learned From the Balanced Scorecard Implementation at BAE BAE Systems competes in several of the most complex, capital- and knowledge-intensive areas of the aerospace and defense industry making each of their product lines and divisions highly dependent on accuracy, efficiency and quality management. For BAE Systems, ensuring exceptional orchestration of each aspect of a project is essential for their growth and continued viability as a business. From their aerospace product
Aligning IT with Business Objectives Companies of all sizes and types are faced with the challenges that are involved in optimizing the use of their information technology (IT) resources by aligning these assets with their business objectives, but many companies are finding the process more challenging than was first believed. In some cases, the business objectives are too nebulous to develop appropriate IT support, while in other cases, top management may
Setting the Stage for Business Process Improvement Recently, many top managers have shifted their thinking regarding production. Rather than focusing on quality alone, they have improved their competitive edge by improving quality, increasing productivity, reducing costs, and increasing customer satisfaction. Businesses have discovered that the "best way to ensure external customer satisfaction is to satisfy every internal customer at each step pf the process. Improving business processes varies from industry to industry.
Customer Satisfaction as a Kind of Nonfinancial Performance Measure The Effect of Using Customer Satisfaction as an Integral Performance Measure, as evidenced by Chinese Manufacturers Challenges to manufacturers as well as many other business structures are significant and often carry a great deal of weight in decision making and future business success. Performance measures are also often focused singularly on financial performance, ROA, ROE i.e. how much revenue the organization has received
It is a broader notion or the next evolutionary stage of client relationship management approach. A customer-centric organization is defined as the one, offering long-term constant and consistent best quality experience to clients 'over all customer access points; across all marketing, sales, and service programs; throughout all parts of the organization.' As can be clearly inferred from this definition, the product will vary over time to satisfy evolving clients needs,