Customer perception

From CEOpedia | Management online

Customer perception include impressions, awareness, knowledge and feelings about a given product or company that buyers have, comparing it with competing products. Customer perception is influenced by:

  • preferences for quality or price
  • positions of competitive products on the map of product perception,
  • weaknesses and strengths of the product or service
  • product features that give it the best chance of being seen and accepted by buyers.

Customer perception of company's brand in the awareness should occupy a specific, distinctive and desirable place in comparison with the products of the competition. It is strongly affected by advertising, marketing mix, public relations activities and social media mentions[1].

E-commerce and customer perception

E-commerce (electronic commerce) develops quickly and globally so companies use electronical commerce to interact with consumers to obtain a competitive advantage. The key indicators of the defeat or success of companies that use e-commerce are presence on the website, quality of electronic services and low price. Assessment of the provision of e-service on the virtual market and the general appreciation of the client determine the quality of e-service. The quality of service is awkward to demystify and measure. The quality of services affects consumption decisions so service quality indicators are used to appraise the quality of contentment with e-commerce channels and virtual community web pages. Customers do not appraise each sub-process closely during a singular visit to an online shop. Services are perceived by them as a general process and effect. The quality of e-services is a crucial consideration for customers because they can more easily collate prices and technical attribute of the product by the internet than through conventional channels. Web customers anticipate higher or identical service quality levels than conventional channel customers[2].

SERVQUAL

SERVQUAL is a model that is used to measure customer perception of the services quality. This model consists of five dimensions. Lee G.G. and Lin H.H. mention about[3]:

  • "tangibles (physical facilities and the appearance of personnel)
  • reliability (ability to perform the promised service dependably and accurately)
  • responsiveness (willingness help customers and provide prompt service)
  • empathy (caring and individualized attention provided to customers by the service provider)"[4]

Measuring the quality of the web service is a challenge because there are inequalities between this service and conventional customer service[5].

Company and customer perception

The company should create a climate for services to encourage customers to use the services of this company. The climate is the common perceptions of the employees of processes, kind of conduct and practices that are rewarded and advocated in a concrete setting. Sometimes in the company is many climates. The climate is the climate for something, for example for a innovation, service. The climate for service is a climate with regard to service of customer and the quality of this service. The service climate in the company will be stronger if employees notice that delivering a high quality of service is rewarded. This climate gives customers positive experiences and a positive perception of the quality of the company's services[6].

Ndubisi N. O. mentions about five prospects for measuring and defining quality of service. These perspectives are[7]:

  • "the transparent view
  • the product-based approach
  • user based definitions
  • the maufacturing-based approach
  • the value-based definitions[8]"

The coordination of operations of each function results in high quality of service[9].

Steps to achieve the optimal interface of customer-service

To accomplish the optimal interface of customer-service can may use of these steps[10]:

  1. Determine procedures or standards of the interface of service, behaviour and requisite appearance
  2. Determine duration of customers waiting and the duration of service for each segment or class of customers which are served by each employee of service
  3. Give conspicuous incentives as well as performance reviews treads
  4. Follow up and give apparent performance encouragements for best performance of service[11].

Examples of Customer perception

  1. Quality: Customers' perception of the quality of a product is based on the design, materials, and construction of the item. For example, if a customer purchases a pair of shoes and finds that they are uncomfortable and of poor quality, they will likely form a negative perception of the brand.
  2. Pricing: The price of a product can influence customer perception, as customers often associate a high price with a high quality product. For example, if a customer purchases a t-shirt that is priced at $50 and finds it to be of low quality, they will likely form a negative perception of the brand.
  3. Advertising: Advertising campaigns can strongly influence customer perception. For example, if a customer sees a television advertisement for a new car and finds the advertisement to be misleading or inaccurate, they will likely form a negative perception of the brand.
  4. Customer Service: The customer service experience a customer receives can have a major impact on their perception of a product or brand. For example, if a customer calls a company with a complaint and is treated rudely, they will likely form a negative perception of the brand.
  5. Word of Mouth: Word of mouth can play a major role in customer perception. For example, if a customer hears a friend or family member talking negatively about a product or brand, they will likely form a negative perception of the brand.

Advantages of Customer perception

Customer perception is an important factor in the way that customers make decisions about products or services. It is the combination of impressions, awareness, knowledge and feelings that buyers have when they compare a given product or company with its competitors. The advantages of customer perception include:

  • Increased trust and loyalty: When customers are able to identify a product or company through their perception, it can lead to increased trust and loyalty. Having a good perception can build a strong relationship between a company and its customers, allowing them to feel more comfortable with the product or service.
  • Improved customer service: When customers have a positive perception of a product or company, they are more likely to seek out customer service if they have any issues. This can lead to improved customer service, as customers are more likely to be satisfied with the outcome if they trust the product or company.
  • Increased sales: Positive customer perception can lead to increased sales as customers are more likely to purchase a product or service if they have a positive opinion of it. This can also lead to improved brand recognition as customers are more likely to share their experience with others.

Limitations of Customer perception

Customer perception is influenced by a range of factors, however, it has several limitations. These include:

  • Price sensitivity - Customers may be unable to purchase a product due to the price being too high or not offering enough value for money.
  • Availability - If the product is not available to purchase or rent in the desired location, customers may be unable to purchase it.
  • Advertising - Customers may have a negative perception if they have seen negative advertising or reviews of the product.
  • Physical appearance - Customers may be put off by a product's packaging or design, even if the product itself is of good quality.
  • Limited knowledge - If customers do not have enough knowledge about the product or its features, they may not be able to make an informed decision.
  • Brand loyalty - Customers may have a preference for a particular brand, which can influence their perception of other products.

Other approaches related to Customer perception

Customer perception is influenced by a variety of factors, including product quality, advertising, customer service, and price. Below are a few other approaches related to customer perception that can help marketers further understand how their target customers view their products:

  • Gathering feedback: Gathering feedback from customers through surveys and interviews can offer valuable insight on how customers perceive a product or company.
  • Market research: Through market research, companies can learn about the opinions, needs, and preferences of their target customers.
  • Analyzing customer behavior: Companies can analyze customer behavior to understand how customers interact with their products, such as how often they use the product, how much they purchase, and what other products they purchase alongside it.
  • Analyzing customer reviews: Analyzing customer reviews on websites, social media, and other platforms can give companies a better understanding of how customers perceive their products and services.

In conclusion, customer perception is an important factor in understanding how customers view a product or company. Gathering feedback, conducting market research, analyzing customer behavior, and analyzing customer reviews are all important approaches that can help companies get a better understanding of customer perception.


Customer perception — recommended articles
Client satisfaction — Brand promise — Components of brand — Customer loyalty — Perceived quality — Brand equity measure — Marketing — Marketing advantage — Image of the company

References

Footnotes

  1. ↑ Ndubisi, N. O. (2003)
  2. ↑ Lee G.G., Lin H.F. (2005)
  3. ↑ Lee G.G., Lin H.F. (2005)
  4. ↑ Lee G.G., Lin H.F. (2005)
  5. ↑ Lee G.G., Lin H.F. (2005)
  6. ↑ Schneider B, White S.S., Paul M.C. (1998)
  7. ↑ Ndubisi, N. O. (2003)
  8. ↑ Ndubisi, N. O. (2003)
  9. ↑ Ndubisi, N. O. (2003)
  10. ↑ Ndubisi, N. O. (2003)
  11. ↑ Ndubisi, N. O. (2003)

Author: Joanna Zawiślan

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