Customer Satisfaction and Marketing Strategies for Didi Chuxing

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This report provides an in-depth analysis of Didi Chuxing's marketing strategies, focusing on customer satisfaction and service quality within the context of the Chinese taxi market. It begins with an introduction to Didi Chuxing, its competition, and its strategic marketing improvements. The literature review explores service customer theory, customer satisfaction, and customer expectations, along with theoretical frameworks like assimilation and assimilation contrast theories. The report also covers how Didi Chuxing can increase customer satisfaction through building a customer-centric culture, understanding consumer needs, setting realistic expectations, and effective communication. The research methodology includes a research design and data collection methods. The report concludes with references. This analysis is crucial for understanding how Didi Chuxing aims to meet and exceed customer expectations in a competitive market.
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Running Head: DIDI CHUXING MARKETING 1
DIDI CHUXING MARKETING
AUTHORS NAME
UNIVERSITY OF AFFILIATION.
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DIDI CHUXING MARKETING 2
Table of content
1.0 Introduction...........................................................................................................................................2
2.0 Literature review...................................................................................................................................3
2.1 Service customer theory....................................................................................................................3
2.1.1Customer satisfaction.......................................................................................................................3
2.1.2Customer expectation......................................................................................................................3
2.2 Theories of customer satisfaction......................................................................................................4
2.2.1Assimilation theory..........................................................................................................................4
2.2.2 Assimilation contrast theory...........................................................................................................5
2.3 Customer expectation theory.............................................................................................................5
2.4 How Didi Chuxing increase customer satisfaction............................................................................6
2.4.1 Building a culture focused on customer service..........................................................................6
2.4.3 Set consumer expectation...........................................................................................................7
2.4.4 Communication..........................................................................................................................7
3.0 Research methodology..........................................................................................................................7
3.1 Research design.................................................................................................................................7
3.2 Method of data collection..................................................................................................................7
3.2.1 Quantitative research..................................................................................................................8
3.3 The population of the research.......................................................................................................8
REFRENCES..............................................................................................................................................8
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DIDI CHUXING MARKETING 3
1.0 Introduction
Didi Chuxing is a China-based Taxi company. The chief executive founder of Didi Chuxing was
Cheng Wei. The company which was formally known as Didi Chuxing Kuaidi is a transportation
company that connects clients using a smartphone app to taxis and vehicles for hire. The
company has although faced very stiff competition from other taxi industry transporters, which
has had a very fiercely investment to win over the customers in Chinese. In the summer of 2016,
Didi Chuxing Company won a competition battle and attained its taxi china unit and hence
eliminated its major threat. Outside the Chinese market, the company has made other strategic
marketing improvement (Fast Company, 2017).The Didi Chuxing is now operating with other
taxi drivers and owners in order to take its fleet in existence to top notched related drivers. The
premium improved taxi boast an extra characteristic of passenger’s mobile chargers for the
interiors. On the other hand, the exteriors have made it possible for the customers to identify the
taxi of premium. To improve the service quality, drivers are advised to be trained and dressed.
The company seeks to improve its customer satisfaction and customer expectation (South China
Morning Post, 2017).
2.0 Literature review
2.1 Service customer theory
The customer service theory is based on the identification and satisfaction of the consumer needs
of the company products. Didi Chuxing Company seeks to surpass the expectations of their
consumer. Didi Chuxing Company is totally committed to ensuring the consistently delivering
standards of high-quality service to gain the loyalty of the consumer and to retain the consumers.
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DIDI CHUXING MARKETING 4
The management of the company should be aligned with the needs of the consumers. Creation of
the customer service in the company is essential for the Didi Chuxing company(Dorling,
2017).The consumer satisfaction and the loyalty of the consumers are inextricably linked to the
service of the customer quality and the, in the end, the Didi Chuxing company
profitability(Dudovskiy, 2017
2.1.1Customer satisfaction
Satisfaction is the overall psychological state that reflects on the evaluation of a correlation
between consumer and the company. Customer satisfaction entails three elements of psychology,
which comprises of emotion, behavioral and thinking (Yüksel and Yüksel, 2017).
2.1.2 Customer expectation.
The consumer expectation is a belief that products will produce some outcomes given with the
performance level that is anticipated based on an experience that is previous. The expectation of
the consumer is majorly seen as satisfaction (Haaften, 2017).
2.2.3 The measurement of satisfaction.
The process of satisfaction heart is the comparison of what the expectation with the service or
product performance. To begin with, the customer majorly forms expectation prior to service or
product purchasing. Secondly, the experience or the consumption of the product producing
perceived level quality through the expectation that has been influenced (Scott Smith,
2016).Suppose the expected performance is slightly lower than the perceived performance it is
presumed that assimilation will occur the perceived performance will be upwardly adjusted to
the expectation. Suppose the perceived performance lags the anticipation considerably, there will
be the occurrence of the contrast and the performance of the perceived will be a shortfall in the
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DIDI CHUXING MARKETING 5
exaggerated manner (Smith, 2008).Client satisfaction can be subjectively determined by
objective factors which entail the product features and services. Applying to the Didi Chuxing
company, there will be various studies that examine the features that passengers may find of
significance in accord to customer satisfaction (Birkett, 2012).The customer satisfaction and
quality of service are the concepts that are distinct.
2.2 Theories of customer satisfaction.
There are a number of approaches theoretical that have been used to explain the correlation
between the satisfaction and the disconfirmation. There are a number of theories adjoining the
paradigm service and the satisfaction. There are the majority of theories which have been used to
comprehend the customer satisfaction judgment process. The theories are placed into the
category of the expectancy disconfirmation, attribution, and equity. From the expectancy
disconfirmation, it is evident that the satisfaction of the consumer is formed based on the product
or service evaluation. Various theories have been identified in order to explain the satisfaction
impact. The theories comprise of contrast, assimilation, generalized negativity, and assimilation
contrast (Johnson, 2015).
There is tension if the expectation of the consumer does not match the performance of the actual
product.In order to reduce and revealed this tension, the consumers will majorly make an
adjustment to either in the product perception or expectation of the performance (Brown,
2014).The two theoretical approaches have been taken into the theory of consistency:
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DIDI CHUXING MARKETING 6
2.2.1Assimilation theory
Assimilation theory is a based on the theory of dissonance. The assimilation theory state that the
consumer makes a comparison between the products perceived performance and the expectation
of the consumer. The consumer usage evaluation that is post was majorly introduced into the
literature satisfaction in the assimilation theory. The discrepancy relation tension can be reduced
by the consumer varying from the performance of the product and the expectation through the
expectation distortion in order to have it the performance of the product perception. This can be
achieved through the upgrading the satisfaction level through the minimization of the experience
of disconfirmation of the relative significance.
Didi Chuxing can use the assimilation theory in order to achieve a different outcome.
Application of the assimilation theory in Didi Chuxing company, apply the affirmation and the
disconfirmation of work satisfaction expectation, the company summarizes that the client might
try to eradicate any experience of discordant. Through this theory, it is possible for the company
to predict that the consumer who is experiencing the performance that is lower than expected, if
the company can work on improving the service or product would mentally work on reducing the
discrepancy. This can be achieved by lowering the expectation, or suppose the case of the
disconfirmation subjectively, positively elevating the performance perception.
2.2.2 Assimilation contrast theory
The theory was introduced in the post-exposure performance of the product context in the
discussion of the contrast consequence and assimilation. The theory implies that suppose the
performance is lying within the range of consumer expectation latitude, despite the expectation
falling short of the expectation, there will be disregarding(Oxfordreference.com, 2017).That
means that the assimilation theory will be in operation and the performance will be seen as
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DIDI CHUXING MARKETING 7
acceptable. Suppose the performance tumbles contained by the opportunity of denunciation,
there will be the application of the contrast and there will be an exaggeration on the variance, the
product or service will be thought as unacceptable.
The theory has been placed under proposition as another way of explaining the variables in the
relationship in the disconfirmation model. The theories of the combination entail both
assimilation and the theories of contrast. The pattern states that the satisfaction is a function of
the largeness of the performance perceived and the expected between the discrepancies. Similar
to the assimilation theory, the customer will tend to adjust the perception difference regarding
the performance to bring in attention with the expectation of the prior but the discrepancy is
stated to be very short.
The theory places an illustration on the contrast and assimilation model that have an applicability
in the research of the consumer's satisfaction(Shen, 2016).Hypothesizing the variable that are
other than the magnitude of the discrepancy might cause an influence of whether the assimilation
effect or the contrast effect would be observed, when the performance of the product is very hard
to judge, the expectation would dominate and assimilation effect will be observed, the effect of
the contrast would cause a high condition involvement. The strength of the expectation can also
be whether the contrast effect or assimilation was observed (De Bruyn and Prokopec, 2017).
2.3 Customer expectation theory
The theory state that the expectation, collaborated with perceived performance, lead to the
satisfaction of the post-purchase. The effect is that it has been mediated through the negative and
positive between the performance and the expectation. Suppose the performance is outperformed
by the product that is a positive disconfirmation. This will result in the post-purchase
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DIDI CHUXING MARKETING 8
satisfaction. On the other hand, suppose the performance of the product is below the expectation
of the consumer, the product will suffer from the negative disconfirmation. This will result in the
consumer being dissatisfied.
Under the consumer expectation theory, the main construct comprises of expectation,
performance, satisfaction, and disconfirmation, the anticipated behavior of the consumer is
reflected in the expectation. They are regarded as predictive, in that they indicate the expected
product features at some point. Didi Chuxing uses the consumer expectation to serve the
standard of comparison, that is what the consumer use to evaluate the performance in order to
form a judgment disconfirmation consumer satisfaction is hypothesized by the confirmation, the
satisfaction is achieved through a positive disconfirmation and the dissatisfaction on the
consumer is achieved through a negative disconfirmation. Majority of the customer service
theory is having a debate on the effect of the satisfaction by disconfirmation. The problem
majorly lies with the company definition of the expectation that is predictive as performance
perception standard used for comparison. During such scenarios, the confirmation of the
expectation that is negative is likely to result in dissatisfaction. Didi Chuxing can overcome this
problem through the use of other comparison standards such as desires, brand experience, and
equity.
2.4 How Didi Chuxing increase customer satisfaction.
Didi Chuxing Company can improve its consumer satisfaction and meet its consumer
expectation through the following;
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DIDI CHUXING MARKETING 9
2.4.1 Building a culture focused on customer service.
Didi Chuxing Company should induce the newly hired staff into the consumer service culture
instantly. The company should provide a training that is very comprehensive that aim at making
them experts in their particular field. The newly hired staff should enlighten on the cornerstone
of the business which is providing customer service that is of excellence. Didi Chuxing company
should ensure that the frontline service provider to the consumer are friendly, personable and
have extensive knowledge about the product. The staff should be empowered to ensure that they
make a decision that results in the satisfaction of the consumer.
2.4.2 Be aware of your consumer
Didi Chuxing will ensure consumer satisfaction only if it will get to know its consumers. This
can be achieved through profiling the consumer. This can be achieved through scanning of
consumer membership card every time they use the taxi or hire a vehicle. This will enable the
business owner to get an insight on how the service offered by the company benefits the
consumer. It is essential for Didi Chuxing Company to put into consideration how its consumers
perceive the service quality (Nixon, 2017).
2.4.3 Set consumer expectation
Didi Chuxing Company should set consumer expectation that is realistic and achievable
regarding the product and the service. Exaggerated claims and marketing that is savvy can attract
the consumer, but the service provided must accurately meet the expectation of the consumer.
The company should be able to deliver on every promise they have made. Products that meet the
expectation of the consumer is likely to be recommended to others. When there is an increase in
the consumer satisfaction level, there is also an increase in the expectation of the consumer. Didi
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DIDI CHUXING MARKETING
10
Chuxing Company should be very innovation in a continuous way in the ways it can improve the
services, products and the experience of the consumer
2.4.4 Communication
To ensure consumer satisfaction, the Didi Chuxing Company should ensure there is continuous
communication with the consumers of its services. The consumers should ever be informed of
the promotions that can appeal to their interest. The consumer should ever be appreciated
through emails and calls. The company should regularly ask the consumer opinion on its services
and products, with an aim of ensuring consistent good customer service. The company should
build a relationship with the consumer and be very attentive to their comments. The company
should always e keen on the consumer ever-changing needs and seek to introduce new products
and services in accord with the feedback gathered from the consumer survey. The expectation of
the Chinese towards Didi Chuxing Company is that it should stay focused on ensuring quality
service production and retaining of the existing consumer and the new target market.
3.0 Research methodology
This chapter focuses on the research methodology that has been used in the research. This
chapter provides a description that is very detailed of the approach research in the study. The
research design, the research instrument and data collection tools used and the method used for
analysis.
3.1 Research design
The research design used is a qualitative research. This type of research is a social science that
focuses on the data collection and works with the data that are numerical and seeks to interpret
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the data meaning that aid in the understanding of the social life through studying of a certain
population that is targeted. The questionnaire is given to the consumer to ask for their view
regarding the customer expectation of the Didi Chuxing Company (Crossman, 2017).
3.2 Method of data collection.
The study took advantage of using the primary data. The data was collected through the use of
questionnaires that are structured and was distributed to the specified sample size. The
questionnaires administered were collected after the completion by the respondent and taken for
analysis. Interviews were used to for data collection (Libguides.usc.edu, 2017).
3.2.1 Quantitative research
The quantitative research is used to examine the relationship between the customer satisfaction,
customer expectation, and service provided by Didi Chuxing Company. The aim of the study is
in order to perform a statistical analysis of the relationship between the variables under study.
The study methodology looks at the general case before proceeding to the particular case under
study. This research on the customer service marketing theory of the Didi Chuxing company
tries to figure out the possible ways it can increase the consumer satisfaction and the consumer
expectation(Snap Surveys, 2017).
The Didi Chuxing company has conducted an interview with its consumer's staff and
stakeholders. The interview had one objective, trying to find ways the company can improve its
consumer satisfaction and meet the expectation of the consumer. Being a global company the
interview was given to the foreigners too. The company operates on the being at the edge of the
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DIDI CHUXING MARKETING
12
competition and maintains a competitive advantage. This can only be attained through ensuring
its consumers are fully satisfied and their expectations have been met.
3.3 The population of the research.
China having a larger population, Didi Chuxing company has selected a sample size of 100
foreigners,20 staff,100 citizens and 30 university students for its research. The research has
targeted the Chinese market because the Didi Chuxing company consumers are majorly the
people based in China. The people selected have at one time or another ride with the Didi
Chuxing taxi or hire a vehicle.
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DIDI CHUXING MARKETING
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REFRENCES
Birkett, A. (2012). How to Measure Customer Satisfaction in 5 Simple Steps. [online]
Blog.hubspot.com. Available at: https://blog.hubspot.com/customer-success/how-to-
measure-customer-satisfaction [Accessed 20 Dec. 2017].
BusinessDictionary.com. (2017). Read the full definition.. [online] Available at:
http://www.businessdictionary.com/definition/research-methodology.html [Accessed 20
Dec. 2017].
Brown, N. (2014). The Two Factor Theory and Customer Service - Customer Centric Support.
[online] Customer Centric Support. Available at: http://customercentricsupport.com/two-
factor-theory-customer-service/ [Accessed 20 Dec. 2017].
Crossman, A. (2017). Choosing Between Qualitative and Quantitative Research Methods.
[online] The Balance. Available at: https://www.thebalance.com/choosing-between-
qualitative-and-quantitative-methods-2297137 [Accessed 20 Dec. 2017].
De Bruyn, A. and Prokopec, S. (2017). Assimilation-contrast theory in action:
Operationalization and managerial impact in a fundraising context.
Dorling, S. (2017). Customer Service Theory. [online] Smallbusiness.chron.com. Available at:
http://smallbusiness.chron.com/customer-service-theory-45500.html [Accessed 20 Dec.
2017].
Dudovskiy, J. (2017). Concepts of Customer Services and Customer Satisfaction: Introduction.
[online] Research Methodology. Available at: https://research-methodology.net/concepts-
of-customer-services-and-customer-satisfaction-introduction/ [Accessed 20 Dec. 2017].
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Fast Company. (2017). Didi Chuxing Chuxing: Most Innovative Company | Fast Company.
[online] Available at: https://www.fastcompany.com/company/Didi Chuxing-kuaidi
[Accessed 20 Dec. 2017].
Haaften, R. (2017). Theory of customer satisfaction. [online] Van-haaften.nl. Available at:
https://www.van-haaften.nl/customer-satisfaction/customer-satisfaction-models/86-
theory-of-customer-satisfaction [Accessed 20 Dec. 2017].
Johnson, W. (2015). Customer Service Theory. [online] Bizfluent. Available at:
https://bizfluent.com/about-6502641-customer-service-theory.html [Accessed 20 Dec.
2017].
Libguides.usc.edu. (2017). Research Guides: Organizing Your Social Sciences Research Paper:
6. The Methodology. [online] Available at:
http://libguides.usc.edu/writingguide/methodology [Accessed 20 Dec. 2017].
Moffitt, K. (2017). Research Methodology: Approaches & Techniques - Video & Lesson
Transcript | Study.com. [online] Study.com. Available at:
https://study.com/academy/lesson/research-methodology-approaches-techniques-
quiz.html [Accessed 20 Dec. 2017].
Nixon, R. (2017). Assimilation and contrast effects. [online] Ipfs.io. Available at:
https://ipfs.io/ipfs/QmXoypizjW3WknFiJnKLwHCnL72vedxjQkDDP1mXWo6uco/
wiki/Assimilation_and_contrast_effects.html [Accessed 20 Dec. 2017].
Oxfordreference.com. (2017). Assimilation-contrast theory - Oxford Reference. [online]
Available at:
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http://www.oxfordreference.com/view/10.1093/oi/authority.20110803095429808
[Accessed 20 Dec. 2017].
Qualtrics Support. (2017). Insight Platform - CSAT Theory | Qualtrics. [online] Available at:
https://www.qualtrics.com/support/research-resources/customer-satisfaction-theory/
[Accessed 20 Dec. 2017].
Shen, H. (2016). Assimilation and Contrast Effects on Consumers= Choices. [online]
Acrwebsite.org. Available at: http://www.acrwebsite.org/search/view-conference-
proceedings.aspx?Id=11789 [Accessed 20 Dec. 2017].
South China Morning Post. (2017). Didi Chuxing Chuxing aims to improve taxi industry in Hong
Kong with ‘premium taxis’. [online] Available at: http://www.scmp.com/news/hong-
kong/economy/article/1985293/Didi Chuxing-chuxing-aims-improve-taxi-industry-hong-
kong-premium [Accessed 20 Dec. 2017].
Snap Surveys. (2017). Qualitative vs Quantitative Research | Snap Surveys. [online] Available
at: https://www.snapsurveys.com/qualitative-quantitative-research/ [Accessed 20 Dec.
2017].
Smith, T. (2008). How to Measure Customer Satisfaction. [online] Insightsfromanalytics.com.
Available at: http://www.insightsfromanalytics.com/blog/bid/391487/How-to-Measure-
Customer-Satisfaction [Accessed 20 Dec. 2017].
Yüksel, A. and Yüksel, F. (2017). Consumer Satisfaction Theories: A Critical Review. [online]
Research gate. Available at:
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https://www.researchgate.net/publication/258224400_Consumer_Satisfaction_Theories_
A_Critical_Review [Accessed 20 Dec. 2017].
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APPENDICIES
QUESTIONAIRE
Kindly fill the questionnaire below. We would like to know how to improve the customer
satisfaction and expectation at Didi Chuxing
1. How often do you typically get the services of Didi Chuxing
Once a year
Once a month
Two to three months
Twice a year
2. Overall, I am very satisfied with the way Didi Chuxing performed (is performing) on the
provision of transportation service
Strongly agree
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DIDI CHUXING MARKETING
18
Strongly disagree
Somewhat disagree
Somewhat agree
Neither agrees nor disagrees
3. Considering the overall value of the services you paid for, was it…
An exceptional value, worth more than you paid for it
A good value, worth about you paid for it
A poor value, worth less you paid for it.
4. Have you ever contacted customer service?
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DIDI CHUXING MARKETING
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Yes
No
4. If you contacted Didi Chuxing customer service, have all problems been resolved to your
complete satisfaction?
Yes by the company or its representatives
By me or someone outside the company
No the problem was not resolved
5. Based on your awareness of [PRODUCT/SERVICE provided by Didi Chuxing], is it better,
the same, or worse than other brands?
Much better
Better
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About the same
Worse
Much worse
6. Please share with us a few things Didi could do better.
7. Based on your experience with Didi’s services, would you recommend this product to a
friend?
Definitely will
Probably will
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DIDI CHUXING MARKETING
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Might or might not
Probably will not
Definitely will not
8. Based on your experience with Didi’s services, how likely are you to use the service again?
Definitely will
Probably will
Might or might not
Definitely will not
Probably will not
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DIDI CHUXING MARKETING
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9. Overall, how satisfied were you with your new services?
1. Very satisfied
2. Somewhat satisfied
3. Delighted
4. Not at all satisfied
10. How would you rate [Company] overall?
Poor
Average
Very good
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Excellent
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