Customer satisfaction

From CEOpedia | Management online

Customer satisfaction is a mental state in which we find ourselves after using a given product.This concept applies not only to end users, but also to those involved in the sale of goods.The consumer can be satisfied or dissatisfied with the choice of product or brand. Customer satisfaction is a combination of a good product (you mean its quality), its price, proper service and customer service.The consumer is satisfied if he received what he expected, or the purchase exceeded his expectations.

Customer satisfaction can be graded, because the consumer may be partially satisfied, for example, with certain brand features, while others may not be completely satisfied with it. For example, we can be satisfied with the size of the purchased apartment, but we are not satisfied with its location and decor.

This mental state is extremely important when the client decides to buy the good again. That is why it is at the center of attention of marketing activities. It is thanks to advertisements that consumers have an idea about the product and obtain the necessary information about it.The opinions of friends, acquaintances and families about the given well are extremely important, because they influence the decisions related to the purchase of the product and may be conducive to gaining new consumers.

Factors shaping consumer satisfaction

Whether the client is satisfied or not many factors determine. They generate not only the satisfaction of the person who acquires the given good, but also the quality, emotions, experience or value. The level of satisfaction, in addition to the actual features of the product, also consists of the nature of the buyer himself, his expectations and needs. In terms of the subject, all these factors can be arranged in three groups: Concerning the product itself

Here, everything related to the product and its physical, real features will be contained. We are talking here about its quality, packaging, price, functionality, brand, etc.The higher the quality, the more satisfied the customer will be. However, one of the most important features of the product that every consumer pays attention to is the price. Very often it becomes an indicator of quality, which is why it is important for an entrepreneur who cares about customer satisfaction to pay attention to the price being adequate to the quality of the product.

Factors connected to the customer

In this group will find everything that we can say about the customer when he makes a purchasing decision. First of all, the previous experience of a given consumer and his expectations in relation to the product and service are important. The higher the requirements, the harder it is to satisfy. The individual character traits and personality of the client are also very important. Not without significance is the origin and wealth of the client.

Factors regarding the seller

This group of factors will include the company's characteristics, seller and customer service.First and foremost, the appearance of the store, staff and its character traits become important - general appearance, empathy, care for good and quick response to consumer requirements, or the ability to make contact. The procedures implemented by the company in customer service (e.g. complaints) are also becoming important. All promotions also affect consumer satisfaction. The most important will be attractive price reductions, merchandising at the place of sale, or advertising on television or radio. Due to the complex nature, customer satisfaction and the process of its creation, it is very difficult to define. Therefore, during the operation of the enterprise, it is extremely important to know the client and the ability to adapt his activities to his needs in such a way as to build his or her satisfaction.

The role of customer satisfaction

A high level of customer satisfaction leads to an increase in its loyalty, which in turn has a huge impact on the long-term financial standing of the company.Because if the consumer is satisfied with the purchase, it is very likely that he will buy our product next time and become our regular customer.The results of research conducted by Lash (1990) and TARP (1986) show that:

  • Among satisfied customers, the average re-purchase rate is 92%,
  • Among the dissatisfied customers who do not report complaints, the probability of re-purchase is 78%,
  • Among customers who reported a complaint but did not receive any response from the company, the probability of re-purchase drops to 46%,
  • Among clients who filed a complaint and received an appropriate response from the company, this probability is 91%, almost the same as for satisfied people.

Consequences of customer dissatisfaction

The problem for the company are those clients who are dissatisfied but do not report this fact, as well as those clients whose complaint has been incorrectly treated. The company loses consumers due to the negative advertisement sent via word of mouth, which can cause large losses to the company. To sum up,

  • The level of satisfaction / dissatisfaction is the basic information in the market information system of each company,
  • A complaint does not always have to be associated with a negative assessment of services. Typically, customers accept the problem if the company offers a satisfactory solution,
  • Complaints are the source of necessary information for companies that allow them to understand the needs of their clients.


Customer satisfaction — recommended articles
Client satisfaction — Consumer decision making process — Customer equity — Post-purchase dissonance — Customer perception — Perception of brand — Value for money — Perceived quality — Consumer buying behaviour

References

Retrieved from "https://ceopedia.org/index.php?title=Customer_satisfaction&oldid=91172"