Customer Satisfaction
Added on 2023-01-20
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Running head: CUSTOMER SATISFACTION
CUSTOMER SATISFACTION
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CUSTOMER SATISFACTION
Name of Student
Name of the University
Author Note
1CUSTOMER SATISFACTION
Literature Review
Concept of Customer’s satisfaction
Customers satisfaction is a term related to the concept of marketing. It is related to the
customers’ expectations and how well a company crosses those expectations of the customers
though the supply of various goods and services (Hill & Brierley, 2017). This concept of
customer satisfaction is related to the percentage of customers and the number of customers
whose experience with the firm, its products and services and others crosses the customer
satisfaction. The MASB or the marketing accountability standards board has defined the term
customer satisfaction, the purpose of the same, the structure and others. These days businesses
make customer satisfaction a part of the business scorecard by making it one of the KPI or the
key performance indicator. Customer satisfaction can also provide a differentiated benefit to the
company and therefore has become a part of the marketing strategy. In other words, company’s
who are able to satisfy customers more than their competitors can gain an advantage over its
competitors because of the customer’s satisfaction and loyalty. A satisfied customer is motivated
to carry out repeat purchase and when a customer carries our repeat purchase he becomes a loyal
customer of the company. Market perception can be created with the help of customer
satisfaction indicators. This is so because the customer satisfaction is an indicator of loyalty and
purchase intentions (Agnihotri et al., 2016). The main purpose of using customer satisfaction as a
key indicator is: these data’s collected relating to customer satisfaction, analyzed and
disseminated within the organizations can help in sending the message of tending to the
prospective customers and to ensure that they have positive experience and satisfaction with the
company’s goods and services. Through proper sales and market share of the company it can be
Literature Review
Concept of Customer’s satisfaction
Customers satisfaction is a term related to the concept of marketing. It is related to the
customers’ expectations and how well a company crosses those expectations of the customers
though the supply of various goods and services (Hill & Brierley, 2017). This concept of
customer satisfaction is related to the percentage of customers and the number of customers
whose experience with the firm, its products and services and others crosses the customer
satisfaction. The MASB or the marketing accountability standards board has defined the term
customer satisfaction, the purpose of the same, the structure and others. These days businesses
make customer satisfaction a part of the business scorecard by making it one of the KPI or the
key performance indicator. Customer satisfaction can also provide a differentiated benefit to the
company and therefore has become a part of the marketing strategy. In other words, company’s
who are able to satisfy customers more than their competitors can gain an advantage over its
competitors because of the customer’s satisfaction and loyalty. A satisfied customer is motivated
to carry out repeat purchase and when a customer carries our repeat purchase he becomes a loyal
customer of the company. Market perception can be created with the help of customer
satisfaction indicators. This is so because the customer satisfaction is an indicator of loyalty and
purchase intentions (Agnihotri et al., 2016). The main purpose of using customer satisfaction as a
key indicator is: these data’s collected relating to customer satisfaction, analyzed and
disseminated within the organizations can help in sending the message of tending to the
prospective customers and to ensure that they have positive experience and satisfaction with the
company’s goods and services. Through proper sales and market share of the company it can be
2CUSTOMER SATISFACTION
said if the company is actually performing well or not (Rangkuti, 2018). However, it is the
customer satisfaction that will determine if the company will be able to get retained customers
and repeat purchases by the customers in future. It has been found through various studies that
customer satisfaction and retention are two related concept and if a customer is satisfied then the
chances of repeated purchases increase and as a result the retention if customers take place. If a
customer is asked to rate the satisfaction on a scale of 1-5 and if he scores his satisfaction point 5
then it is most likely that how will return to the same store to which he gave 5. Another major
indicator of a satisfied customer is that they make recommendations to others such as friends,
relatives and others and this shows that the customers is highly satisfied. This helps the company
in improving its sales. On the other hands, if a customer gives a rating of 1 on a scale of 1-5 then
his chances of repeat purchase with the same firm will be unlikely and furthermore they can have
a negative impact on the company by passing various negative comments about the company
products and services (Rahman et al., 2017).
said if the company is actually performing well or not (Rangkuti, 2018). However, it is the
customer satisfaction that will determine if the company will be able to get retained customers
and repeat purchases by the customers in future. It has been found through various studies that
customer satisfaction and retention are two related concept and if a customer is satisfied then the
chances of repeated purchases increase and as a result the retention if customers take place. If a
customer is asked to rate the satisfaction on a scale of 1-5 and if he scores his satisfaction point 5
then it is most likely that how will return to the same store to which he gave 5. Another major
indicator of a satisfied customer is that they make recommendations to others such as friends,
relatives and others and this shows that the customers is highly satisfied. This helps the company
in improving its sales. On the other hands, if a customer gives a rating of 1 on a scale of 1-5 then
his chances of repeat purchase with the same firm will be unlikely and furthermore they can have
a negative impact on the company by passing various negative comments about the company
products and services (Rahman et al., 2017).
3CUSTOMER SATISFACTION
Figure 1: The purpose of Customer satisfaction
Source: (Lan et al., 2016)
From the above diagram the process of customer’s satisfaction and loyalty can easily be
understood. The company takes the feedback about its products and services from the customers
such that it can may the required changes to it and resell the same in the market with the features
as demanded by the customers and to track the progress of the process.
There have been various studies related to the same and wherein customer satisfaction is
understood and studied from various aspects. These aspects can be related to the normative to
positive aspects or even physical to psychological aspects (Fosouli, KhaniJazani & Hajikarimi,
2016). This concept of customer satisfaction is related to two main aspects such as the
Figure 1: The purpose of Customer satisfaction
Source: (Lan et al., 2016)
From the above diagram the process of customer’s satisfaction and loyalty can easily be
understood. The company takes the feedback about its products and services from the customers
such that it can may the required changes to it and resell the same in the market with the features
as demanded by the customers and to track the progress of the process.
There have been various studies related to the same and wherein customer satisfaction is
understood and studied from various aspects. These aspects can be related to the normative to
positive aspects or even physical to psychological aspects (Fosouli, KhaniJazani & Hajikarimi,
2016). This concept of customer satisfaction is related to two main aspects such as the
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